Career challenge: How to ask the boss for a raise in a bad economy
Inflation and other economic stressors may propel people into the boss's office to ask for more money
American employees are facing soaring inflation, rising food and gas prices, higher borrowing interest rates and more pocketbook stressors.
Businesses, meanwhile, are struggling with the nation’s economic downturn, supply-chain issues and a tight labor market, as FOX Business has also reported.
For employees who feel they deserve a bump in pay because they've earned it, there are some effective strategies to consider when pursuing more money in a paycheck.
CAREER CHALLENGE: WHAT IF THE BOSS FINDS OUT YOU'RE JOB HUNTING?
However, all of this needs to be weighed carefully — and timing is everything.
Many large corporations have an employee performance review period once a year and that may be the only time period during which raises are considered. Other firms may have more flexibility or other options.
Here are some tips and insights.
Ask to meet with your manager
The first step in the quest for a raise is to meet with your manager. Start the conversation by discussing your current compensation, according to one human resource specialist.
"During the meeting, it’s important for an employee to be firm and to the point, but respectful and congenial," Insperity's Michael Timmes of Florham Park, New Jersey, told FOX Business.
During a meeting about a raise, it’s important for employees to be "firm and to the point but respectful and congenial," said Michael Timmes of Insperity. (iStock / iStock)
Timmes works as senior human resource specialist at Insperity, a human resources company that is headquartered in Houston, Texas.
CAREER CHALLENGE: HOW TO NAIL YOUR SECOND JOB INTERVIEW AND LAND A DREAM JOB
"There’s no need to beat around the bush, and the boss will appreciate an employee who is prepared, matter of fact and confident," Timmes said.
Although you’re confident and direct, he cautioned that it’s also important to remember that the state of the economy impacts all parties involved.
Be prepared to explain why you deserve a raise
Employee preparedness is a key element in this discussion, said Timmes.
A request "for a raise without fact-based points, performance data, market salary comparisons and a future vision doesn’t hold much merit," he said.
Performance data is a critical component of any raise request, said Michael Timmes of Insperity. (iStock / iStock)
Among these items, your performance data is a critical component of your raise request, he also said.
"If applicable, this [data] should address meeting or exceeding revenue goals, increasing market share in [your] niche and increasing productivity or customer/client satisfaction scores," Timmes continued.
TROUBLE AT WORK WITH A COLLEAGUE? HOW TO DEFUSE AN ARGUMENT BEFORE IT ESCALATES DANGEROUSLY
For administrative or operational roles, the data may include reducing organizational turnover and time-to-hire statistics, and/or increasing engagement scores on organizational climate surveys.
You should sing your own praises and share how you’ve grown professionally.
Perhaps you've ben improving operational efficiencies.
"Any metric that shows the employee has contributed to moving the organization forward" is important to share, Timmes said.
CAREER CHALLENGE: DO YOU REALLY NEED TO GIVE TWO WEEKS' NOTICE WHEN LEAVING A JOB?
"Though it’s great to have an open line of communication with your boss, this meeting should have an agenda, with the employee driving the conversation," Timmes said.
Know that ‘life is volatile' and that certain conditions warrant a request for a raise
"You don’t only have to ask at your yearly review," Timmes noted.
"Life is volatile and with that comes unexpected changes and expenses, some of which may gravely impact your well-being — and your current salary can’t [always] provide the necessary support," he said.
American employees are facing soaring inflation, rising food and gas prices, higher borrowing interest rates and more pocketbook stressors. (iStock / iStock)
Though the yearly review period is the most popular time to ask for a raise — or the only period during which some companies consider raises — Timmes said that doesn’t mean it’s the only time to discuss pay increases.
"That said, an employee shouldn’t be asking for a raise a month or two after just receiving one — there’s a fine line between asking for what you deserve and being greedy," he said.
Certain scenarios warrant a raise ask, according to one HR professional.
Also, certain scenarios warrant a raise ask.
Those conditions may include an employee's taking on more responsibility, up-skilling to a higher level and/or having been underpaid for a certain amount time, said Timmes.
HOLIDAY SHOPPING: CONSUMERS LEAN ON STORE CREDIT CARDS TO OFFSET FINANCIAL BURDEN
Also, it is important that all goals have been met — and exceeded, he said.
Present details about your workload, trainings
You should sing your own praises and share how you’ve grown professionally.
If you are taking on a larger role at the organization, highlight that, too.
"Absolutely, this can be part of the ‘supporting materials’ aspect," Timmes said.
If a boss gives you a raise solely for economic reasons, then everyone else in the organization would deserve one, too, said Brooks Scott, an executive career coach in California. (iStock / iStock)
He said employees should discuss "anything that helps prove your case as to why you’ve become more valuable in this timeframe."
Base a raise request on performance
In a meeting with a manager or supervisor, stick to the reasons you’re worthy of a raise. Those reasons should be focused on job performance and measurable results, including how you’ve helped the company’s bottom line.
"Here is what you should not do: Base your request on inflation, the cost of living or the economy," said Brooks Scott, an executive career coach based in Oakland, California.
WORKPLACE BULLYING: HOW TO RECOGNIZE IT, HOW TO HANDLE IT
Those factors "affect everyone," Scott explained.
He said that if a boss gives someone a raise for economic reasons, then everyone else in the organization would deserve one, too.
"Especially in today’s market, everyone has taken on more work. That’s not something unique."
"Instead, come prepared with specific points that highlight you and your work and how that work differs in impact from other people in the organization," he said.
CLICK HERE TO READ MORE ON FOX BUSINESS
As you’re discussing your contributions to you company, strive to show what makes you shine, he also said.
"Especially in today’s market, everyone has taken on more work. That’s not something unique," continued Scott.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"Aim to highlight quality more than quantity. It’s not just that you’ve taken on more work — but that the impact of your work has increased significantly."