In a world of rising costs, all workers would welcome a pay rise. But how can you go about asking for one? We place you in the best position using the overlooked factors below.
Asking for a raise is a daunting prospect. It is estimated that around 37% of women have asked for a raise in their lifetime, and around half of males. Yet if the conditions are right, and you have done your homework, you can make a raise almost an undeniable request. Below, we delve into the most overlooked factors when you ask for a pay rise.
How many people ask for a raise each year?
Market analysis for the coming year suggests that salaries should increase between 3.5% and 3.9% in 2025. This is due to a rapidly rising cost of living. Despite many employees also feeling the grasp of inflation itself, along with a smaller labor market, many are expected to raise wages.
The argument against this is that even if a company does offer this raise, it barely covers the upward trajectory of the past few years. However, by no means are they out of line with historical trends.
Market research
The first step is to do some research on your industry and the current state of your company. If you walk into a meeting asking for a raise, only to find the organization is considering laying people off, you may be in a sticky situation. Thus, you need to know that the conditions are right for your request.
Start by conducting a competitive analysis of the business. This is the gathering, research, and data evaluation of a company. They can be done on a large scale or in smaller versions to give you a snapshot of the competition a company is facing. Generally, they are used to make helpful, impactful business decisions in response to competition.
As a person asking for the raise, knowing the competitors gives you leverage. If the market is strong and you are a good employee, your business will not want you heading off to the enemy. These insights will also be valuable in discussions with your own management. Perhaps you know that competitors are launching a major new product line and need staff. You may find out they have increased advertising in new markets and are planning an expansion.
By no means should you hold your employer to ransom. However, letting them know you understand what others are doing shows them you are not tied to one company. You may find that you are in an industry that has very little competition, in which case the ball tends to be in your employer’s court, as you have fewer options.
Timing your request
Timing your request is another factor people often get wrong. You cannot start a new contract and expect a raise straight away. In fact, new hires should wait at least six months, if not a year. By the same token, you can’t just waltz into the office and demand one whenever you like. There are times and moments when it will be much more effective.
Assuming it has gone well, at the end of any performance review is a good time to make an inquiry about a raise. This will be at a point where the company has admitted your value and worth, giving you a platform to work from. At the end of a financial year, if the business has done well, is also a good time.
Similarly, you need to pick a time that is good for your boss on a personal level. If they are swamped with work or stressed with events at home, asking for a raise is not the best time. Wait until they are having a positive period and are more likely to reciprocate.
Improving your worth
An overlooked factor is your worth to the company itself. If you have done only the basics of your job over the past year, the chances are anyone could replace you. Prove you are proactive and have provided a positive impact in the workplace.
One way to do this is by upskilling yourself. This may be through opportunities at work itself or by educating yourself outside of the office. All of these add to your resume and are factors you can bring up when asking for a raise. It could be anything from as small as a minor certification to one as big as a master’s degree. Another method is to keep a list of your own personal wins. You may have brokered a business deal or had input into a successful product. In the managing of a business, your boss will undoubtedly have forgotten most of these smaller intricacies. This provides a subtle way to remind them.
By no means is a raise a given. Begin preparing in advance by showing your worth to the company. Upskill and provide a positive working atmosphere. Once this is done, research the company, its place in the market, and how well it is doing. By then you should be able to see if you are in a position to ask for a raise.
