This time of the year marks compensation review time for many companies. This can mark angst not just from the employee hoping for a raise commensurate with the impact they’ve made, but also for managers trying to balance the realities of a budget with both strong – and not so strong – team members.
Personally speaking, I find this one of the most challenging set of conversations I have during the year. I am fortunate to have worked at companies that have been prosperous enough to budget for healthy increases for strong performers. However, even those seemingly “easy” conversations – for example, “Hey, you got a raise!!!,” which you’d think would excite anyone -- are sometimes met with misaligned expectations.
Read on to explore a few myths and realities to consider before you boldly go and ask for a raise.
MYTH: You must ask for a raise to get a raise.
REALITY: If you are being overlooked for a raise, there is a probably a good reason. Assuming your company is financially in a position to be giving raises, it’s important you understand where you stand before you ask your manager for a raise. For example, is there an adjustment cycle, or are increases given on a rolling basis? Are you guessing your performance is strong enough to warrant an increase, or do you have data to support it in the form of a stellar review or a company award? Have you taken on significant new responsibilities? Gather all your facts BEFORE you approach your manager -- and be ready for a reality check. Just because YOU think you deserve one, doesn’t mean your boss, or their boss, agrees. The hope is that you and your manager would be communicating frequently enough to know exactly where you stand at all times, but when it comes to money there’s often a lot more to consider. Bonuses and raises are sophisticated conversations that aren’t always as easy as they seem.
MYTH: Highlighting what my peers make to prove I’m underpaid will be a good strategy to get a raise.
REALITY: Maybe…or it could completely backfire. I often see people compare themselves to their peers, and think, “I’m SO much stronger than him! I should make more!” Dangerous strategy. You aren’t looking at performance from the manager’s perspective; you are looking at it from a biased, peer one. You might be able to craft your own narrative about your colleague’s performance, but ultimately, you don’t know how your manager views both of your performance side by side. There may be a very good reason why your peer is paid more. Ask for a raise based on your own merits, not comparing yourself to others.
MYTH: Believing you deserve a raise because you haven’t had one in awhile.
REALITY: We aren’t owed raises, we earn them. While it was a popular model to give “cost of living adjustments” long ago, that practice is largely fading away. No employers wants to reward people for just hanging out in their role; they want to provide those monies to people who are really making an impact. Bill Belichik, coach of the New England Patriots, famously tells his team, “Do your job.” That’s what we get paid for. To earn a raise, you earn it through stellar accomplishments and impact made beyond your day-to-day responsibilities. NOT time in role.
MYTH: I’m playing multiple roles, so I should be paid that way!
REALITY: Maybe someone left on your team and you picked up the slack, or maybe you are highly aspirational and frequently ask to take on more. Look around, however, and you will find a number people who have an over-abundance on their plates. If you want to highlight your work ethic as a supporting reason for a raise, make sure you don’t come across as whiny. There is a big difference between, “I do the work of three people!” and the more effective – and illustrative -- “I’ve made impact in my core job, as well at the other tasks and projects I’ve picked up…”
MYTH: I’m going through some life changes, so my company should help me out.
REALITY: Maybe you just decided to live without a roommate for the first time or you are getting married. We all navigate life changes throughout the course of our careers. Of course, it would be incredible if raises aligned with these big life changes, but there is no correlation. Many bosses aim to be empathetic, but that does not – and should not – translate to a compensation increase just because of your personal situation.
In a perfect world, you’d get a killer raise exactly when you think you deserve one, without having to ask for it. Your manager would recognize your impact and grant you a sizable increase. Given the world is not perfect, sometimes we feel we need to bring up the topic ourselves. This is totally acceptable --just be prepared. Arm yourself with data to support your request and go in ready for a conversation NOT battle. Remain open-minded and listen to what your manager has to share. If you are on different pages, seek to gain clarity on where this is misalignment. If they agree a raise is warranted, don’t expect magic to happen overnight. Under special circumstances sometimes that happens, but generally speaking, timing and budgets play a big role too. Taking a non-emotional approach just might net you that raise you deserve.
Christina Luconi is Chief People Officer for Rapid7. Follow her on Twitter: @peopleinnovator