How to Ask for a Raise

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At Literally Simple, we’ve been focusing on making, manifesting, and creating more money, income, and profits for the entire month of May. One easy and quick way you can make more money is to figure out how to ask for a raise.

It’s no surprise that my minimalism journey has allowed me more time to focus on my family’s personal finances. This had lead us on a debt free journey to pay off student loans, but also prepare ourselves with a robust retirement. Turns out when you stop caring so much about “stuff,” you start caring about your time. Time is obviously more important than money, but money in a sense can buy you time, which is why personal finances has been made a top priority in that last couple years, and why I started researching how to ask for a raise.

As a teacher, I never had to ask for a raise, but now as I find myself in the private sector of the education field it is imperative that I ask for a raise every year. Women especially should be asking for a raise every year, if not more, or especially after you have completed a successful project or enterprise with your company.

You’re Not Asking for a Raise Often Enough

Your own retirement and financial future is dependent on your level of income. Every little bit counts, especially when we’re talking about compound interest. Grant Sabatier author of Financial Freedom states that less than 10% of his employees through the years have asked for a raise or a bonus (162). Less than 10% have deemed their own skills worthy for an increase in their salary! I think this reality is mostly based on fear. Fear of being denied your raise. Fear of someone explaining that you’re not good enough, or fear of failure.

The Importance of Asking for a Raise

Face the fear because that raise is worth it! Sabatier persuades that “a simple study that looks at an annual 3 percent versus a 4 percent raise each year showed that after thirty years the 4 percent raise was worth $578,549 more when the small 1 percent difference was invested in the stock market” (162). That’s huge! He further explains that “most people are underpaid in their roles, but many don’t do anything about it” (162).

Our family has felt this. In fact, we’ve taken on second jobs and found new employment because of this, but that was the harder route. It would have been easier to sit in debt and continue the daily grind than to pull our heads up, think creatively, and find a higher income for a better use of our time.

A higher salary isn’t always the best alternative either. What you should be aiming for is a higher hourly wage, especially when you have children. Both my husband and I have cut our hours since becoming parents, but managed to make about the same amount of money. This isn’t necessarily a salary raise, but a better hourly wage. My initial hourly wage increase happened just because I wasn’t commuting 2 hours a day. If you’re a parent, you’re paying for your commute too, since you have to pay for childcare during this time.

How to Ask for a Raise

1. Accept that Your Company is Trying to Make the Highest Profit off of You

When considering how to ask for a raise, make sure that you accept your company wants to make a profit off your work. They want you to work as cheaply as possible, and when you don’t ask for a raise, you’re allowing this to happen. Your company isn’t evil. It’s just business. They want the company to make gains. However, they also want you to be happy “enough.” Your company wants to pay you “enough” so that you stay, but also so that you’ll be motivated to work for the next raise (163). Which is precisely the reason you need to ask for a raise every year.

2. Do Your Research When You Ask for a Raise

Before you schedule a time to negotiate a raise, make sure to do your research. You should have prepared in advance: your market value, your value to the company, and any times you have gone above and beyond job responsibilities.

I researched using Glassdoor average salaries in my field, salaries that other companies or schools have offered me including benefits and time off, and listed all my extra duties that have gone above and beyond my job description in the past year or two.

To figure our your value to the company, think about your years of experience, and more immediately how much it would cost to replace you. It takes money and time to find an equally qualified candidate. According to Sabatier “Most people should be making a lot more money, but they underestimate their value to their company and don’t ask for more money” (167). If you can also calculate how much money your company has made off products or services you have created for the company. If you can get access to that data, you’ll really have an impressive argument.

3. Determine How Much of a Raise to Ask For

Based on your research, and perhaps how much it would cost your company to replace you, determine the amount of money you should ask for. “Typically you are more likely to get a bigger raise if you ask in terms of percentages instead of dollars…[because] the percentage will feel less tangible to people” (Sabatier 170).

4. Determine When is the Best Time to Ask for a Raise

According to Sabatier “the best times to ask for a raise are during your annual performance review, at the end of your company’s fiscal year, after your workload has increased because of recent employee turnover, or after you’ve spearheaded a company initiative that turned out to be a huge success” (171).

You should also consider the day and time. “Research shows that the best time to ask for a raise is Friday morning” (Sabatier 172). This is because your boss is more likely to be relaxed with the upcoming weekend (172). Try to also feel out your boss’s mood. If she feels stressed or anxious, probably not a good time to ask for that raise. Perhaps come back with it next week.

5. Ask for a Raise!

Explain your appreciation of your current position. “Share something that really excites you about a project or the direction of the company” (172). Then, explain why you need a raise. Make sure you have rehearsed your earlier research. Type it out and practice making the key points so that you are ready for your face to face meeting.

Make sure that if you don’t get an immediate answer, that you ask for a deadline. This will give you the go ahead to look for other income streams once the final answer is decided, and you won’t be in limbo thinking you might get a raise sometime soon.

Final Thoughts

Remember, most people “don’t know they probably have the upper hand and are more valuable than they realize (173). You also should continue to research “your market value, company value, compensation, and benefits at least a few times a year” (173). Don’t be afraid to research the roles you may move into in coming years as well. You want to have a good idea of where you’ll be headed and the income levels you could be making.

Continue to learn and grow in your field as much as you possibly can. Any other skills that you are able to learn while working can be added to your resume to make you more marketable in the future. Seek out new opportunities within you job, and enthusiastically be willing to learn.

You may find that you have “outgrown” your current position and asking for a raise and being denied might be a sign to look for different employment. Change is scary, but switching jobs can be a great way to increase your income rather quickly if you negotiate what you are worth.

Join The Discussion

Have you asked for a raise this year? What is stopping you?

P.S. I always ask readers to follow me on Instagram, Pinterest and Facebook. I consciously try to document my everyday simple life. Since we happen to be on a debt free journey, it can be motivating because most of my activities are intentionally inexpensive. However, if you’re trying to cut out social media, you’ll need to subscribe directly to this blog.

Author

-Maria Halcumb
B.A. in Secondary Education, English, and Physical Education
M.A. Ed. in Curriculum & Instruction and Reading Specialist