Talking about money gets awkward, no matter what setting you are in. Discussing a salary is no exception to this. Since money is such a touchy subject, you must know how to approach the topic before launching into a discussion about it. If you are looking to get a raise from your employer, you need to be prepared before you walk into their office.
So many wonder when they will finally receive that raise that they have been working so hard for. After all, shouldn’t you receive a raise if you have been performing above your boss’s expectations? There are so many questions surrounding raise and this article will walk through the key questions surrounding raises.
How Often Should You Get a Raise?
Naturally, as you become more capable in your position you begin to expect a raise in compensation. But, how often does this raise actually come? Investopedia reports that most employers give employees a 3% pay increase per year. Most companies operate according to this yearly pay increase.
However, other factors could be in play that entitle you to a raise. Significant accomplishments, like getting a big deal or valuable client for your company, could qualify you to receive a raise. If you have recently received a promotion or have been assigned additional responsibilities beyond your core assignments, it might be appropriate to ask for a raise.
How Often Should You Ask for a Raise?
The general consensus from most professionals is to ask for a raise once a year. This allows you to generate results so you can prove your value to your employer. Additionally, most companies grant raises every year, making it more likely that you will receive the raise you desire.
After joining a company, you should wait at least 6 months to a year before asking for a raise. Companies reward loyalty and will be more likely to give raises after a full year of employment. Wait to ask for a raise until you can verify that you are an asset to the company.
What Impacts Your Raise?
Beyond performance and accomplishments, there are a handful of factors that might impact how much a company will increase your pay by. Here are several items that might influence how much your raise is:
- Promotions: One of the best qualifiers for a pay raise is receiving a promotion. With the increased responsibilities traditionally comes additional compensation.
- Inflation: As prices soar, employees naturally expect their salary to do the same. One issue with this is that the cost to run the business also increases with inflation. Regularly touching base with your employer regarding your pay is the key to combating this.
- Industry/Sector: While this won’t cause a monumental difference in your pay increase, there are some slight nuances between different industries. Government workers, for example, receive smaller raises than those in the private sector.
- Location: Do a little research on pay raises in your city. Pay increases vary widely by the location you are in and its economic condition. Even within states the pay increase can have a wide range from city to city, so make sure that you are informed beforehand.
Remember It’s Not All About the Money
Despite always being taught that it is all about the money, there is more to negotiate for than just a pay increase. If you are unsuccessful in negotiating for higher pay, there are other options. Consider negotiating regarding the following: career development opportunities, a change in responsibilities, travel, flexible working hours, and other perks. There is more to it than just a salary negotiation.
How To Ask for a Raise:
Once you are ready to ask for a raise, know that there are a few preparation steps to ensure that you are successful in your request. Keep in mind that you need to make sure that it is the right time before going in to talk to your boss. Confirm that they are in a good mood before asking for a pay increase, as this could dramatically influence whether or not you get the raise. As you prepare for your request for a pay increase, work through the following steps:
1.In-Person or Email
Deciding the channel through which you will talk to your boss about a pay raise will be a big influencer on your strategy moving forward. You will have to adjust if you ask them in-person or over email according to the personality and preferences of your boss.
Would your boss prefer time to look over your request and decide on their own? Or would it be easier for them if you could openly discuss the request? Ponder and decide what you think would be the best choice for your boss.
You must go into an interview after having done your research. Look up salaries and pay raises related to your position. Include your location in your research regarding salaries and raises, since this is a big influencer of the financial abilities of a business.
Understand that you are never guaranteed to get a raise. Even if you have been meeting all your job requirements, you are not entitled to raise. Often, employers grant raises to those that are truly going above and beyond. Make sure that your case is compelling.
3.Write up a Script
You need to know what you are going to say before talking to your boss. Have an “argument” or rationale for why you should receive the raise. In this negotiation, you will have to justify why you are deserving of the raise, so don’t come in without facts or examples of why you qualify for additional pay.
Keeping a journal or some other form of record keeping is a great way to track progress and gather data that you can use in a discussion regarding salary. Discuss how you are meeting and surpassing the goals set for your role. If you have taken on any additional responsibilities, be sure to mention this here.
If you would like to take on more responsibility to justify a raise, explain why you could take on these new tasks and assignments. The key to this step is having back up for whatever salary you suggest.
As you prepare, draft up some potential salaries that you might be comfortable with. Bring up the research you did regarding salary ranges and pay increases in your location.
4.Have a Backup Plan
As painful as it is to think about, what will happen if they say no? You must be prepared for this answer. How will you react if they cannot grant your request? Threatening to quit is highly unprofessional and never advised. Have a plan in mind for what you will do or say if they say no.
If your boss claims that they cannot grant a raise at this time, ask how you can qualify for a pay raise. This can be a great learning opportunity and a chance to show your employer that you are teachable and willing to negotiate.
No matter what, be sure that you are prepared before any discussion regarding a raise. Never be spontaneous in asking for a raise. While there are no guarantees when it comes to raises, following these tips will highly increase your odds of landing the pay increase you desire.
Need more career advice? Check out the Hire Integrated blog.
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The general consensus from most professionals is to ask for a raise once a year. This allows you to generate results so you can prove your value to your employer. Additionally, most companies grant raises every year, making it more likely that you will receive the raise you desire.Is a 5% raise good for a promotion? ›
How much of a raise should I ask for? The average pay raise is 3%. A good pay raise ranges from 4.5% to 5%, and anything more than that is considered exceptional.Do you have to get a raise every year? ›
When are pay raises required? Pay raises are generally a matter of agreement between an employer and employee (or the employee's representative). Pay raises to amounts above the Federal minimum wage are not required by the Fair Labor Standards Act (FLSA).What is a good raise percentage 2023? ›
The expected COLA for 2023 is 8.7%., meaning if you were going to give an employee an annual salary increase of $10,000, you would adjust that amount to $10,870 to account for inflation.How often is it OK to ask for a raise? ›
How often should you ask for a raise? If you recently started a job, wait a minimum of six months to ask for a raise. Most employers are more likely to give you a raise if you have been with the company for at least a year or more. If you have been with the company for multiple years, then you can ask once a year.How long should you work without a raise? ›
You should work for at least one to two years without a raise. On average, waiting any longer than two years is too long, and working a job for three years without a raise is unacceptable.Is a 10% raise enough? ›
It's always a good idea to ask for anywhere between 10% to 20% higher than what you're making right now. You may be able to ask for more based on your performance, length of time with the company, and other factors. Make sure you come prepared when you negotiate your raise and be confident.Is 30% too much to ask for a raise? ›
While asking for 30 to 40 percent may be too much, Corcoran does recommend always asking for "more than you want" by "a little." "Raises are a process," Corcoran said. "You don't walk in and hit someone over with a giant club -- sometimes you get there with little clubs along the way."Is a 7% raise for a promotion good? ›
To achieve correct salary placement, promotional increases typically average between 7% and 12% for a one grade level promotion. If you currently use a fixed percentage for all promotions, such as 8%, consider using a range of percentages.Should I quit if I don't get a raise? ›
When you don't get the salary increase you expected, don't panic. Try not to take it personally, take a deep breath, and consider your strategy for moving forward. Don't Quit Right Away. Unless you have another secure job offer waiting for you, it's probably wise to avoid quitting in a huff.
Each year, the Social Security Administration applies a COLA to payments made to those receiving Social Security and Supplemental Security income (SSI). For 2023, the COLA increase is 8.7%, which is significantly larger than the COLAs in recent years.What not to say when asking for a raise? ›
- "I Deserve a Raise Because I Have Been Here 'X' Amount of Years." ...
- "I Feel That…" ...
- "X Is Making More than Me." ...
- "I'm Overdue for a Raise." ...
- "I Will Leave if I Don't Receive a Raise of X Amount." ...
- "I'm Going to Need to Go to the Competition." ...
- "I Need More Money Because I'm in Debt."
The U.S. inflation rate was posted at about 6.4% year-over-year as of January 2023, per the latest CPI data. The obvious solution is to ask for a pay raise of 6.5% or so to at least stay even with inflation, but that's not always the best strategy, experts say.What is a typical salary increase for a promotion? ›
Promotional increases within the same company typically amount to around 3%, whereas a person that switches jobs can expect a pay raise of about 10% to 20%. What's more, you may receive a promotion without any accompanying salary increase.What is average pay raise in 2023? ›
The average increase for 2023 will fall between 4% and 5%. Just 11% of companies (compared to 18% of companies last year) said they'll increase base pay by more than 5%, according to the report.Can asking for a raise backfire? ›
The tricky part is that there is no guarantee your employer will give you a raise once they find out you've received a higher offer. In fact, this tactic can backfire, particularly if you were just using the other company's offer as a bargaining tool and were never planning to accept it.Is it normal to not get a raise in 2 years? ›
Is it normal to get no pay raise in two years? There are a variety of factors that can affect your not receiving a raise in two years, and this can also affect whether to consider it as normal. A good example of this would be if your company had to reduce pay or expenses in response to an economic downturn.How do you ask for a raise when you are underpaid? ›
If the research you've done shows that you're underpaid, Krawcheck recommends setting up a meeting with your boss. Remind them of your recent wins, and then say, "I've done some research, and it appears I'm underpaid by x percent." Then stop talking. "We always want to fill the awkward moment, but just wait," she says.What to do when your raise is not enough? ›
Thank your boss for the salary bump and recognition they've already given you, and then explain why you believe the number should be reconsidered. Share your big accomplishments, as well as the salary data you've gathered, to back up why you would like your manager to reconsider your raise.Should you get a small raise every year? ›
In most cases, you shouldn't ask for a raise more than once a year. Of course, there are exceptions to this rule, such as if your employer didn't give you a raise six months ago but promised to revisit the issue in another four months based on performance goals or available funding.
How much should my salary increase each year? Your salary should increase by at least 3-5% per year. While annual raises vary a lot depending on your circumstance, a raise of at least 5% is more than adequate. Anything above that would be considered higher than average.Can you lose a job offer by negotiating salary? ›
It is simple: you can lose a job offer by negotiating salary if you make unreasonable demands or by going below what is expected of the request.Is a $1 raise good? ›
While $1 may not seem like much, it can add up to a lot over time. If you can get a raise larger than $1, you'll see your lifetime earnings go up even more. That's why a promotion or raise can make a difference in your finances.How much more a paycheck is a 10000 raise? ›
A $10,000 raise divided by 26 equals approximately $385 before taxes.When should I ask for a 20% raise? ›
The best time to ask for a raise is when your work has been going well, your boss is in a good mood, and you've been in your current position for at least six months with good performance (and a good performance review or annual review if applicable). All of those factors will boost your chances of hearing “yes.”How many people don't ask for a raise? ›
Another recent survey by Salary.com found 55 percent of employees didn't ask for more money during the last 12 months—and 23 percent have never asked. Salary negotiations can be difficult.Is asking for a $2 raise too much? ›
Some salary negotiation advice encourages asking for any amount that is deserved, and that no amount is too much as long as it reflects the value of what is being delivered at work.What is a good internal promotion rate? ›
If your company is growing, merging, or acquiring new businesses, it might have a high number of promotions to keep up with the change. SHRM's Customised Human Capital Benchmarking Report suggests that the average promotion rate for organisations is 6%.How do you counter a salary offer? ›
- Do your research. If you haven't already researched salary ranges for your position, now is the time to do so. ...
- Consider non-salary benefits. ...
- Know your value. ...
- Take time to craft your counteroffer. ...
- Submit all your requests at once. ...
- Negotiate. ...
- Prepare for their response. ...
- Make your decision.
The amount of a merit increase can vary widely based on the company giving it and the employee receiving it. It is standard for companies who take good care of their employees to award top performers with an increase in the neighborhood of 3% to 5% on an annual basis.
Absolutely. However, there is no law against firing someone for asking for a raise, even if it is a bad business practice.What is dry promotion? ›
Dry promotion: A dry promotion is when a company promotes an employee without increasing the salary. The employees' job responsibilities and status increase in a dry promotion, but they do not receive any monetary benefits.Why is my paycheck less after a raise? ›
Raises are given on a gross pay basis. You may have previously been making $50,000 per year as your gross salary. Even though you make $50,000 in gross pay, your net pay isn't $50,000. It will be smaller thanks to deductions and withholding.What is a typical cost of living raise? ›
A cost-of-living raise can help you afford increasing expenses due to inflation, but not all employers offer these raises automatically. For years, 2-3% has been the norm, but some employers say they're boosting that to 4%, given the current economic climate.What is considered a cost of living raise? ›
A cost of living raise is an increase in income that correlates with the rise in the cost of living. A cost of living raise may also be referred to as a cost of living adjustment (COLA) or cost of living increase.How much employers are budgeting for raises in 2023? ›
Employers in the U.S. plan to boost salaries an average of 4.6 percent in 2023, up from 4.2 percent this year, according to a new study. Employers say inflationary pressures and the ongoing challenges of finding and keeping workers are the main reasons for the higher projected increases.Will my boss get mad if I ask for a raise? ›
Not at all. Employees have every right to ask for a raise, but they don't always have the place to get a raise. Regardless, managers shouldn't get annoyed with their employees for asking.What is the average raise after 1 year of work? ›
In the United States the current average raise after 1 year of work is 3.73%. However, the best way to determine what your average raise after 1 year of work should be is to use average raise percent increases reported by the U.S. Bureau of Labor based on sector.Should I bring up inflation when asking for a raise? ›
To ensure that your raise results in real wage growth, you might consider asking for a bump in pay that outpaces inflation. Mustain recommends asking for a minimum of 10% for standard work performances. Normally, asking for that high a raise is risky. But these aren't normal times.How long should you stay in a job without a promotion? ›
In general, three to five years in a job without a promotion is the optimal tenure to establish a track record of success without suffering the negative consequences of job stagnation.
It's not impossible to get a 50% raise, but you will definitely need a good argument to convince them if you want to have a chance. The best argument is to simply show them that other companies are willing to give you that kind of money.What is the difference between a raise and a promotion? ›
One important distinction to make is the difference between a promotion and a raise. A promotion is usually a change in job title and/or job responsibilities. A raise is just what it sounds like – more money. The two often come together, but not always.Does everyone get a raise in 2023? ›
Appropriate salary increase for 2023 FAQs
No, it's not mandatory for your company to give a pay raise to all employees annually. Pay increases are at the discretion of the employer.
There is no legal requirement for employers to provide cost-of-living adjustments. However, employees who are part of a union may have COLA pay as a part of their contract. For most employers, however, cost-of-living adjustments are entirely discretionary.How to ask for a raise in 2023? ›
Be Specific About What You Want. When you ask for a pay increase, get specific with the request and use your research to back it up. For example, you might find that you consistently exceed expectations in reviews but have a below-market salary. You could make the case that you deserve X% above the market rate.How much should a raise be every year? ›
While annual raises vary a lot depending on your circumstance, a raise of at least 5% is more than adequate. Anything above that would be considered higher than average. Of course, the average annual increase between 2021-2022 is 7.6%, but this is partially due to abnormally high inflation rates.What is every year you get a raise based on your job performance? ›
Merit increase is a type of pay raise that is given based on how employees perform at work. It is often used to reward the top-performing employees within the company. As a result, this can encourage employees to achieve company goals while relating their efforts and goals to the increase in their salary.What is a realistic yearly raise? ›
Employees who meet their goals and meet the company's expectations are generally entitled to a 3% increase, which is the national average. Some employers may only offer a nominal increase of 2% to some workers while others may receive a jump of 5% or more.Should I get a cost of living raise every year? ›
A cost of living increase is not mandated unless required by law or agreement, such as annual minimum wage increases, or stated in a union agreement, benefit plan document, or employment contract. When cost of living raises are offered to employees, they may not be needed every year.What is the average salary increase in 2023? ›
Understanding the Numbers
As U.S. inflation trends downward in 2023, the projected average total salary increase has risen to 4.6%.
Thank your boss for the salary bump and recognition they've already given you, and then explain why you believe the number should be reconsidered. Share your big accomplishments, as well as the salary data you've gathered, to back up why you would like your manager to reconsider your raise.How much of a raise is worth changing jobs? ›
Generally speaking, a good and reasonable salary increase when changing jobs is between 10-20%. The national average is around 14.8%, so don't be afraid to ask for a similar increase. At a minimum, you should expect a wage growth of at least 5.8% when you change positions.How long should a raise take to go through? ›
A raise normally takes between a few weeks to a month to process. This is the average amount of time. However, it can be longer or shorter, depending on your company.