How to Ask for a Raise

Asking for a raise can feel awkward and intimidating. To ease the burden, we’ve prepared a simple guide to help you plan and prepare to ask for a raise.

Preparation

Factor in a Cost-of-Living Adjustment

Discussing a cost-of-living adjustment (COLA) with your boss can be a straightforward route to bridging the topic of a raise. The cost of essentials like food, electricity, and gas have tend to increase each year, leaving less of your paycheck leftover for discretionary spending or saving. It is only reasonable that employers factor in the rise of costs with employees’ salaries. 

The Bureau of Labor Statistics records is a great resource for gathering information on things like cost of living and inflation. Since states and the federal government don't require cost-of-living adjustments, referencing and using COLA and the Consumer Price Index (CPI) as reference points when negotiating a higher salary can be beneficial and convincing. 

Do Your Research

Before approaching your boss, research what a competitive salary is for your role. You can use websites like Glassdoor and PayScale to measure your current salary against your job or similar roles within the same industry. When using these tools, factor in your geographic area and years of experience to ensure that the salary data is correct. Certain geographic regions like New York or San Francisco may have a far higher salary for your role than your metropolitan area, so using the correct region will safeguard against sharing inaccurate information with your boss.

Show Your Value

Reflect on your achievements over the last year. Prepare a concise document that outlines your accomplishments and illustrates the value you have created for your team and the organization. If you have access to the dollar amount of revenue that your work has brought to the company, include it to help underscore your ROI as an employee. Reviewing this document when you meet with your boss is beneficial for several reasons: 

• Establishes your worth as an employee
• Keeps the meeting and salary negotiation structured
• Allows you to drive the discussion

Determine What You Want

Holly Schroth, a Senior Lecturer at UC Berkeley Haas School of Business and faculty director for the Negotiations and Influence program suggests identifying your BATNA and setting your resistance point as you prepare for your salary negotiation. BATNA is the “best alternative to a negotiated agreement,” or what happens if you don’t reach agreement. Your resistance point is your bottom line or the lowest amount you would accept before walking away. 

In the context of a discussion about a raise, your BATNA would likely be a new, better paying opportunity within or outside of your current organization and your resistance point would be the smallest increase in salary and/or benefits that you would accept before exploring your BATNA.

According to Schroth, “you should always set this prior to negotiating when you are in a rational state of mind. Salary negotiations can become emotional. The resistance point helps prevent you from accepting an offer that you may later regret. Do not change your resistance point at the table. If you think you set it in error, step away from the table and conduct more research before adjusting it”. Determining your BATNA and resistance point in advance will enable you to recognize your end goal and avoid conceding to a subpar raise.

Don’t Spring it On Your Boss

No one likes to get blind sided. Plan a time to meet with your manager to discuss a raise. This will create a more favorable environment for the discussion. You can approach the situation in person or via email depending on your personal preference, just don't overthink it.

Here's an example of a simple, direct email:

Hello XXX,

I'd love to schedule some time with you to discuss my salary with you. I love working on the team and I'm so proud of everything we've achieved this year. Can I grab 20–30 minutes on your calendar?  

Practice Your Talking Points Beforehand

Practice is crucial!  Knowing what you want to say, anticipating questions and objections, and preparing responses ahead of time will allow you to feel more confident during the discussion.  

Things to Consider for the Salary Negotiation

Start Slightly Higher than Your Salary Goal

Your boss will likely negotiate your initial salary request down so factor in about an additional 5% from your desired raise to leave room for negotiation.

Mention Non-Cash Benefits as an Alternative 

If your boss does not meet your desired salary raise, you can communicate an interest in receiving other cash benefits to offset the dollar difference. Examples of non-cash benefits are:

• Extra paid time off (PTO) or sick days
• Health benefits (insurance plans for medical/dental/vision)
• Retirement benefits (401K plans, pension plans, or stock options)
• Additional days of WFH  (which can help save on gas money)
• Other Options
  • Company purchasing you a new laptop or cell phone (for personal or business use)
  • Transportation allowance
  • Professional development allowance
  • Childcare services or allowance for childcare

After the Meeting

It is probable that your boss will request time to assess your request. Be prepared to not receive an answer immediately.

It is possible for your boss to deny your salary increase request. If that does happen, ask your manager why the request was denied and what you can do in the future. Remember, your request may have been rejected for reasons unrelated to you. After receiving a rejection, you have the opportunity to assess where you stand. It could be an opportunity to rethink your career path and job position. 

If you receive a yes, show your appreciation and continue to work sharp!