A friend of mine recently asked me for advice regarding her promotion. After being stuck in dead-end retail jobs since graduating college two years ago, she finally landed a temp-to-hire customer service gig. On hire, her boss informed her that if she were to be hired full time she would get a raise.
1. If your company has a separate HR department, talk to your boss first. Your boss should be able to speak to HR for you, and determine what your pay rate will be.2. When talking to your boss, it is always wise to come prepared to discuss your contributions to the company or any previous work you’ve done that relates to what you will be doing for the company in the future.3. It’s good to show “you understand” the financial situation of the company. One line I like to use these days is – “I understand the economy is tough right now, and it is such an honor to be working for this company. However, I do hope to be compensated fairly based on what I have and/or may contribute to this company…”4. Don’t be afraid to high ball, within reason. I once was offered $40k for a job and asked for $50k, assuming I would maybe get a counteroffer of $45k. I was extremely shocked when my boss simply said “ok.” (I’ve also gotten a flat out “no” when trying to negotiate a $1200 a year raise at a different job.) Hiring is a complicated process but what’s most important to many bosses and hiring managers is to have the right people on their team. The difference of $5,000 a year may not mean a lot to a company, but it will mean a lot to you.5. Be ready to walk, if you want to walk, or even if you don’t want to. Apply for other jobs if you have to. Make it seem like you can get something else, even if you can’t. You always want to seem like not only the best person for the job, but a person that the company is lucky to have. Of course, you need to follow up with proving this while working at the company once hired or promoted. Right now, you need them to know just how great you are, without sounding full of yourself. Just be confident – it goes a long way.6. Think of your total compensation package and negotiate for better benefits (more time off, telecommuting days, etc) if the pay rate is set. You’ll be glad you asked for this later. Don’t let company’s fool you into thinking stock options are worth a lot more than they are. 401ks are only exciting if the company matches, and few companies do these days.7. Ask for a 3 month review. This is especially important when you’re first hired and if you’re willing to accept slightly less than what you would like to be making. At a lot of companies you have to wait for a year before getting a review and the raise that goes with it. It’s fair for a company to want to test you out a bit before giving you a significant raise, but ask that your work be reviewed within a set amount of time (3 months) and make sure to document your work over that time period and meet with your boss in 3 months to get that raise you deserve.8. Don’t be afraid to ask for what you deserve. I know, it’s scary to ask your boss for more money. As a shy girl (or guy), we’re likely worried about confrontation. We just want to be offered the things we deserve. Unfortunately, in the business world, that just doesn’t happen. Negotiation is expected, and you’ll feel so much better once you’ve done it.9. Dress really nice (for your work environment) on the day you ask for a raise (and the days prior and after).10. Be rational. You’re not going to get a pay bump from $30k to $100k in a year. Don’t ask for a raise every month. Use common sense and you may end up with some extra spending/saving money each year.