How Do You Know If You Should Negotiate Your Salary?
You’ve been working hard for a year or so, and things are going well. You’re exceeding your goals, and you believe you’re a valuable contributor to your team and company. So now you’re starting to wonder, when am I going to get a raise?
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How do you know when the time is right to negotiate your salary? The most common response is likely, “during my year-end performance review.” But waiting for your review to start talking about salary might not be the best way to maximize the size of your raise.
Performance reviews usually take place at the same time for the entire company, and by the time they roll around, it’s likely that your boss and the HR department have already decided how to split the budget to give raises to each employee. Even if it’s company policy not to give raises outside of the review cycle, it’s a good idea to start bringing up the idea of a raise with your manager several months prior to your review, to make sure she or he is keeping you front of mind.
Also, if you’re performing well and know you’re underpaid, there’s no reason not to ask for a raise at any point in the year. Out of cycle increases — raises throughout the year — can take place for a variety of reasons, such as bringing an employee’s salary in line with market value, rewarding outstanding performance or even keeping pace with a rapidly changing job market.
How do you find out if you’re underpaid?
Learning your value is vital before beginning salary negotiations. Tossing out a random number without knowing what other people in your job are making is a recipe for disaster. There are a couple ways to find out what a fair salary is for job: contacting a recruiter and asking what they think; talking to your peers, if you know any working in a similar job; scanning job boards for similar jobs listed with salary. If that sounds difficult and imprecise, you’re probably right. Fortunately, PayScale’s Salary Survey can easily educate you to the range of what peers in your industry, in your area, and in your job field are making, giving you a solid idea of what your pay should be. Once you have that number, you can bring your salary report to meetings with your manager and/or HR to show them your market value, i.e. what you should be paid.
Be sure to prepare properly for your negotiation — do the research to learn your value, and make sure you can point to successful projects or victories that show you deserve a larger salary.
The good news is, according to PayScale’s data, 75 percent of people who ask for a raise get one. The odds are in your favor.
Tell Us What You Think
Do you believe you’re underpaid? What’s your plan? We want to hear from you! Leave a comment or join the discussion on Twitter.
I am covering for maternity and the lady is due back in February , I have asked to discuss my options when she returns but haven’t got any where with this , I was also given a contract to cover her maternity but that runs til June. Since her maternity the account has grown by a third and I have managed it very very well, I originally took the job to move out of my NHS job . Since taking on the job i work at least 10 hour unpaid overtime , never off sick and stay if need be… Read more »
My first suggestion would be to find out why you’re being paid less, if other females are being paid more than you, then we know it’s not a gender issue. I would seek data and advice from other coworkers as to why this may be. I would get all the data together and have rehearsed the handling or reply for all the reasons that may come up, but my first question, when asking for the raise, would be, why your pay is less than the rest, and of course remain calm, ask with a smile.
Is it ok? if I ask for a raise after 2 months of joining, I was hired at below market rate.
I do have a higher offer in hand.
I know I am under paid and have been at the same wage since 2012 and that raise was only $.50. I really don’t know what to do when I’ve been working very hard for over 8 yrs and this is where I’m at. I’m told the company didn’t make enough money so they can’t give me a raise. I don’t know what to do.
What if I’m paid about average to higher than what the normal payscale is, but learned a new skill that is rare in the field, AND haven’t gotten even a cost of living raise in 2 years. Is it still applicable to attempt to ask for at least a cost of living raise? I was thinking of asking for cost of living combined for the past 2 years plus performance but I also don’t want to be unrealistic/insulting/greedy. Not to mention I believe the medical field may be a little different than most jobs. Curious about what path to take… Read more »
I believe I am getting underpaid because I worked for a company for two years now,with out increase,even what I earn Is way less to what i am suppose to earn because i am running a project(based on site as a Site Agent.