Negotiating a raise is intimidating.
How much should you ask for?
What’s considered fair?
The truth is, that asking for a raise requires strategy, research, and confidence. You don’t want to ask for too little and undersell yourself, but asking for too much could seem unreasonable.
In this guide, we’ll break down the steps you need to take to determine how much of a raise to ask for and offer some helpful tips for negotiating successfully.
Why Asking for a Raise Is Important
Let’s face it—salary negotiations can be uncomfortable, but they’re an essential part of professional growth.
According to research, only 37% of employees have ever asked for a raise. [1] That means many people are leaving money on the table by not speaking up.
Whether you’re taking on new responsibilities, have excelled in your role, or simply haven’t received a raise in a while, asking for a salary increase is not just about more money. It’s about recognizing your value and ensuring your compensation aligns with your contributions.
Step 1: Know the Industry Standard for Your Role
Before asking for a raise, it’s crucial to know the typical salary for someone in your role, industry, and location.
There are many tools available to help you gather this data, like Glassdoor Salary Reports or Payscale’s Salary Calculator.
For example, if the average raise in your industry is between 3% to 5%, that’s a good baseline to consider when asking for a salary increase.
Step 2: Consider Your Performance and Achievements
Once you’ve established the industry standard, the next step is to reflect on your performance. Have you taken on new projects or responsibilities? Have you exceeded expectations in your role? These are the factors that will help you justify asking for a raise on the higher end of the spectrum.
If you’ve consistently gone above and beyond, it’s reasonable to ask for a 10% to 20% raise. If your contributions have been solid but steady, a 5% to 10% increase may be more appropriate.
Step 3: Factor in the Length of Time Since Your Last Raise
If it’s been over a year since your last salary adjustment, it may be time to negotiate. Inflation and cost of living changes can significantly impact your purchasing power over time.
Many companies provide annual raises that align with inflation, usually around 3% to 5%. If you haven’t received one in several years, you could reasonably ask for a larger increase to make up for the gap.
Step 4: The Magic Number- What Percentage Should You Ask For?
So, how much should you ask for?
Here’s a general guideline based on various situations:
- 3% to 5%: Standard cost-of-living increase
- 5% to 10%: You’ve taken on new responsibilities or consistently delivered solid performance
- 10% to 20%: Exceptional performance, long time since last raise, or taking on leadership roles
- 20%+: Major promotion or significant increase in responsibilities
Example:
Let’s say you’re making $50,000 annually. A 5% raise would bring you up to $52,500, while a 15% raise would bump your salary to $57,500. Do the math to see what various percentages would look like in your case.
Step 5: Preparing for the Conversation
Once you have your raise percentage in mind, it’s time to prepare for the conversation. Come armed with facts and data to support your request.
Here’s how to structure your ask:
- Show appreciation for your current role and what you’ve learned so far.
- Highlight key achievements or added responsibilities.
- Clearly state the percentage or dollar amount you’re asking for, backed by research.
Example Request:
Thank you for the opportunities I’ve had in this role. Over the past year, I’ve taken on new responsibilities, including [specific examples]. I’ve also consistently [describe achievements]. Based on my research and the value I bring to the team, I believe a salary increase of 10% would be appropriate.
Common Mistakes to Avoid While Asking For Raise
- Not doing your research. Asking for a raise without data to back it up can make you seem unprepared.
- Being vague. Be specific about the percentage or dollar amount you’re asking for.
- Not practicing the conversation. Rehearse what you’re going to say so you sound confident.
- Ignoring company performance. If your company isn’t doing well financially, it may not be the best time to ask for a raise. Timing is key.
Timing Is Everything
When you ask for a raise matters. The best time to bring it up is during a performance review or after you’ve successfully completed a big project. Avoid asking during busy times or when your manager is dealing with a heavy workload.
The odds of getting the raise you want are higher when you pick the right moment.
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FAQs
Is it okay to ask for more than a 20% raise?
It depends on your situation. If you’ve taken on significantly more responsibility or are receiving a promotion, a larger raise may be warranted. However, asking for more than a 20% raise without substantial justification may be seen as unreasonable.
How often should I ask for a raise?
It’s typically appropriate to ask for a raise every 12 to 18 months, especially if your role or responsibilities have changed. However, timing should also depend on your company’s performance and financial situation.
What should I do if my raise request is denied?
If your request is denied, ask for feedback on how you can improve and when you can revisit the conversation. Consider asking for non-monetary benefits like additional vacation days or flexible work arrangements.
Can I ask for a raise outside of my performance review?
Yes, but make sure to have a valid reason for the timing, such as completing a major project or taking on new responsibilities. Asking during a performance review is ideal, but if your contributions have significantly increased outside of that time frame, it’s okay to bring it up.
Conclusion
Asking for a raise requires careful preparation, research, and timing. By understanding the industry standards, reflecting on your performance, and preparing a solid case, you’ll increase your chances of getting the raise you deserve.
Just remember, confidence is key, and having the right data and approach will make your task more compelling. So, go ahead—take that step toward earning what you’re worth!
Sources
- Payscale. Raise Anatomy
Manisha is a digital writer providing guidance in career development and growth. She facilitates skill development and implementation of the right strategies for advancement. At Jobera, She documents content around the latest market trend analysis, insights, and career planning.
