Yuppie Sherpa

Asking for a raise when you’re low man on the totem pole is scary. If you know it’s scary, then you’d better believe your employer knows too. All fear and apprehension aside, though, sometimes it is necessary for a young professional to seek more than they’ve been given by the company they’re making money for. But how?

I prefer to secure pay increases from my existing employer, rather than switch companies to inflate my salary. Because of this, I’ve negotiated many raises for myself with several companies in my (relatively) short time in corporate America.

Here are a few tips and strategies that have helped beef up my paycheck over the years.

1. Research Industry Salaries

It’s much easier to justify your desired salary level if you can show your boss that you are being paid less than you are worth. Salary levels vary by industry, experience level and geographic location. By researching what other professionals with comparable profiles are making in your industry, your contention that you deserve a raise can be backed up by multiple objective sources. Always print out your findings, as it’s much easier to dismiss someone telling you what they “read online” than someone who has his data in-hand. Some places to begin your research include:

- Salary comparison sites, such as Salary.com and PayScale

- Independent research and surveys from industry groups, usually conducted annually. These can usually be found by searching Google for “[your title/industry] salary survey”.

- Job postings for positions similar to yours that list salary. Note: Use for reference only, DO NOT print these out.

2. Research Market/Industry Forecasts

In my job, which involves managing ad campaigns, a forward-looking industry forecast that says ad spend is expected to increase X% in the next year helps my cause. By showing that the industry as a whole (including my employer’s competition) will be increasing their spending, I’m not better able to make the case for why having a skilled campaign manager who is familiar with the market/company/industry is worth more than what I’m asking for.

3. Know What You’re Worth

The nature of my work allows me to draw a clear line between myself and the revenues generated by my efforts. I don’t mind telling you that, in a year, my work contributes millions to my company’s bottom line. I also don’t mind admitting that I don’t have a 7-figure salary. By showing on paper how much I was worth to the company last year, it’s easy for me to present my request as a pittance by comparison.

4. Ask for a Performance-Based Bonus

Before I even go into this, let me say: get it in writing! You’re about to ask for a contractual arrangement, whereby you will receive either a one-time bonus or a permanent salary increase for meeting one or more performance goals. The advantage this has over asking for a salary increase is that you can outline exactly what your employer will be getting for their money. However, to successfully execute such a mission, you had better come prepared…

- You must have done your homework in advance to find the offer(s) your boss can’t refuse.

- You must make sure you’re not offering something that you should already be doing.

- You MUST put in writing what the goals are and what specifically constitutes “meeting” them.

Don’t give away how you will meet these goals, otherwise you may find your plan of attack is now the job description for the person being hired to replace you. This is a high risk/high reward strategy, which is why I don’t recommend it for anyone looking to get just a small pay bump.

5. Timing is Everything

Do not ask for a raise during your company’s slow season or around holidays. Instead, make your request when the thought of losing you as an employee is downright terrifying. I’m not suggesting you ambush your boss or hit him/her when they’re weak. Doing so will only create a loss of trust that may limit your future with the company. Wait until your participation is about to become more valuable or you are about to have more work to do. Not only will this redefine the consequences for your employer of turning down your request, but it will also give you an extra leg to stand on. A person asking to expand their pay along with their responsibilities comes across more reasonably than a person who wants extra money for the same effort.

6. Start a Rumor - Note: At your own risk

This can only be done if you are confident you know how your employer will respond, or if you’re willing to ditch the job. Speaking from experience, I can say that I have seen many cases where an employer caught wind of an employee’s desire to leave the company, and approached them with a pay increase. It happened by accident to me one time when I actually was planning to leave. I’ve seen others approached by their bosses with salary increases of over 10% based on a rumor alone. Now make no mistake… like with the other strategies, this one depends heavily on your value to the company. If you haven’t made yourself needed, your boss may spend your raise on a piñata party when he hears the rumor.

Above all, don’t ask for what you don’t deserve. On the one hand, if you don’t believe you deserve what you’re asking for and you’re challenged on it, you’ll fold like a cheap suit. On the other hand, if you secure a salary that exceeds what you’re worth, it probably won’t be long before your employer realized this and fixes the error. Asking for what you feel is fair and right will instill you with the confidence and conviction that you’ll need in order to do battle with a tight-fisted boss.

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