Is It the Right Time to Ask for a Raise?

Inflation is a hot topic, and corporate profits seem to be under pressure yet again. At the same time, you’ve leveled up your skills, stepped in for departed colleagues and punched above your weight every day. Is it time for your compensation to reflect your contribution?

It’s always an anxiety-inducing thought to go to the boss and ask for money. Is this a bad time to ask for a raise? Is there ever a good time to ask? We’ll look at the timing of asking for more money and a few things you can do to help put your money in your paycheck.

Remember, you’re in charge of your own career. If you want better compensation, you need to ask for it. If you want learning and growth opportunities, ask for them or figure out ways to make them happen.

Should you wait for a positive earnings report from a public company or other signs of success? Or do you make your case for a raise regardless of the larger circumstances surrounding your employer?

Ideally, the timing of a raise request should reflect your personal development and the current job market rather than the economy. You must make the business case for yourself. Use the same research and presentation skills you apply to other parts of your job.

If you’ve continued to build your skills and make valuable contributions, you’ll be in a good place to ask for more. Increased compensation should also be expected if you’ve moved into a more senior role and taken on additional responsibilities.

Your company may have a standard salary review process. But that usually ends up with the average cost-of-living increase. Set your sights higher.

Build the Business Case for Your Raise

Strategically develop a solid foundation for negotiations by consistently demonstrating value throughout the year. In other words, be really good at your job. This sets the stage for a more favorable outcome.

This is where your skills can shine. Make the case for your raise like you would for a procurement event or a big project. Conduct a thorough self-assessment and gather supporting data before starting the conversation with your manager.

Your company may have a standard salary review process. But that usually ends up with the average cost of living raise. Your sights are set higher. Proactively initiate the compensation conversation ahead of the formal review cycle. Off-cycle adjustments are often more accessible and can be easier for leaders to approve.

Visit online job platforms to get a sense of the salaries in the marketing place and compare to your workload and performance. The HR department may do the same thing, so knowing the current market range is smart.

Favour collaboration over ultimatums, but don’t fear exploring new opportunities. Companies differ in their compensation strategies—find the one that aligns with your goals. Data shows that that job switchers often outpace stayers in earnings growth, noted Taylor Bradley, head of HR Business Partners & Compensation at Turing.

Don’t see a raise as a one-time event. Consider it as part of your career journey. You’ve gained experience and confidence and are ready to go to the next level.

Showcase your contributions and value to the organization, highlighting instances where you’ve gone above and beyond. Express your commitment to long-term growth within the company and your eagerness to collaborate on a path toward your salary aspirations.

By framing the conversation this way, you engage your employer in a dialogue that focuses on your value and potential, leaving them with the choice to support your career ambitions.

“Ultimately, this approach transforms the request for a raise into a collaborative discussion about your career progression within the organization, increasing the likelihood of a favorable outcome,” says Denisse Guenoun, Co-Founder at Pana Partners.

Time for Plan B?

If managers say they can’t afford a raise, you should ask yourself if the business can afford to lose you. Recruiting and hiring a new team member will cost the business, whether they use a recruitment agency or handle the process themselves.

Additionally, the cost-of-living crisis has been pushing salaries up and therefore, a new hire would probably require a higher salary.

“Looking at the cost to the company and the fact the individual has been upskilled to further support the business, asking for a raise is completely understandable, and it’s logical for the company to respond positively,” says Matt Collingwood, Managing Director of IT recruitment agency VIQU.

When you meet to ask for a reason, focus on your accomplishments and value rather than inflation or the economy.

“Talk about the impact you have had on the business and how your new skills are enabling improvements and more efficiencies,” Collingwood added. “If the person can give specific examples, it will have a more powerful and convincing effect.”

What if your supervisor isn’t keen on the idea of adding to your salary? What if the economy is worsening, or a raise would put you ahead of peers, and you don’t get what you’ve asked for? Is it time for Plan B?

“If there’s been no talk of a pay rise, then it would be worth looking at the current job market,” says Andrew Fennell, a former recruiter and Director at StandOut CV, a resume advice service. “Look at the compensation levels the competition offers for similar roles. It might be time to consider a career switch so that you can live the life you really want. Have a good think and try to keep your options open.”