Thinking Strategically
About Your Next Raise
Sacha Cohen
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Yearly or more frequent performance reviews are
de rigueur in most workplaces. Generally, the
scenario goes something like this: You are summoned
into your manager's office, she goes over an evaluation
sheet, and at the end, and she tells you how much
of a salary increase you'll be getting. This time,
however, instead of sitting back and hoping that
your manager will come through, it's time to be
proactive.
Preparation is as important when you are negotiating
for a raise, as it is when you are negotiating
your starting salary. Make sure you know what
kind of salary you can command by reading salary
surveys and other sources of salary information,
and discreetly find out the ballpark percentage
increase your colleagues are making. For example,
what's typical for some companies-such as 5% or
so-may be very low for others. The standard percentage
raise for a given company is also likely to change
depending on the economy and fiscal circumstances
for a given year.
Lee Miller, author of "Get More Money on
Your Next Job," recommends going online to
sites such as Salary.com
or Futurestep.com
to do salary research. He also advises contacting
associations such as the American
Chemical Society, which may conduct salary
surveys for specific professions. In addition,
Miller says you can learn a lot by networking
with people in your field or talking to headhunters
and recruiters about what the salary range is
for your current experience level.
The Art of Self Promotion
Some managers tell employees to keep a list of
accomplishments (presentations they've given,
awards they have received, projects they've worked
on, continuing education courses) for the previous
year. It's helpful to have all this information
in one place to make a strong case. Keeping letters
and e-mail that support these accomplishments
is also a good idea.
Elizabeth Dougherty, a compensation consultant
with Watson Wyatt, a human resources consulting
firm based in Washington, DC, says that the best
way to prepare yourself for a performance review
is to conduct a self-assessment. "Use the
criteria upon which your supervisor will judge
performance. Consider both quantitative measures
(revenue generated, deadlines met) as well as
behavioral criteria (for example, acted as mentor
to junior team members, proactively handled critical
customer situation)." Dougherty also says
you should reflect on your "development opportunities"
-- skill areas where you can improve, areas of
interest, areas which will lead to promotional
opportunities -- and be prepared to offer some
suggestions. Finally, she advises employees to
provide feedback regarding any significant barriers
(and suggestions for overcoming those barriers)
to your productivity, quality and effectiveness.
Laying the groundwork months in advance is essential,
says Miller. "The time to be thinking about
your next raise is as soon as you've gotten your
last one," he says. Since most managers have
very little idea of what you are doing on a day-to-day
basis, it's your job to let them know. "Most
people think if they are doing a good job, they
will get a raise or promotion automatically, but
unless you make a conscious effort to get that
information to your boss, you may be passed over,"
warns Miller. To this end, you need to become
a good self-promoter. You may be doing a great
job but if your supervisor has no idea what you
are up to, it won't matter at review time.
Like Dougherty, Miller suggests that you make
a comprehensive list of the projects that you
are working on and the progress you are making
on each item. It doesn't help to only communicate
your successes with your boss at the review; you
have to let her know how you are doing throughout
the year. Explains Miller, "Casually keep
your boss informed." Meet with him once in
a while, send the occasional "progress report,"
anything to keep the lines of communication open.
"One really good way to let your boss know
how well you are doing is send your boss a note
to praise the people on your team - laud the people
you work for and therefore you laud yourself.
"The key is communicating with your boss.
If money's attached to the project, savings, etc.
make sure your boss knows about that as well---put
a number to it."
Sidebar:
The Dos and Don'ts of Getting What You Deserve
Timing Is Everything
Before you go racing into your manager's office
to demand more money, keep in mind that timing
is essential. "The boss is no different than
everyone else," says Richard Chang, CEO of
Richard Chang Associates. "They have good
days and they have bad days. Look for signs or
characteristics that indicate you're actually
talking with them on a good day. If you have a
pre-scheduled discussion time, and there are indicators
that this is a bad day, be sure to re-schedule
the discussion time."
"Ask for a review out of cycle (i.e. not
during regular performance review periods),"
advises Miller. A great time to approach your
manager is after you've had a success - such as
a project that's gone extremely well. "You
need to pull yourself away from the masses. It's
easier if you take yourself out of the cycle and
somehow distinguish yourself from everyone else."
Also remember that whether you are on the giving
or the receiving end, work evaluations make most
people uncomfortable and your boss may also be
feeling stressful about the situation. "When
you approach him or her, strive to create a comfortable
environment and to build understanding and appreciation
for your performance and for the reasons you are
making your request," explains Chang.
Negotiating and Counteroffers
Let's assume that you are less than pleased with
the raise you've been given. Is it wise to negotiate?
Dougherty says that yes, you should discuss the
increase amount with your supervisor to understand
the rationale behind the dollars. "Be prepared
to express your dissatisfaction by articulating
your reasoning, for example you might say, 'The
project I managed came in on time and under budget.'
She cautions, however, that negotiating an amount
may be difficult since criteria other than performance
(such as budgeting) may play a role in the ultimate
increase amount.
Unfortunately, warns Dougherty, if employees
share in the success of the organization (vis-à-vis
bonuses), then they might also be expected to
share -- to some extent -- in the organization's
hardships. But even during tough economic times
or despite poor business results, some organizations
may be willing to offer non-cash rewards to superior
performers. The key to getting those rewards is
to make sure you keep a good record of what you've
accomplished throughout the year. The more data
you have, the stronger your case will be. While
the company's benefit policies may be difficult
to change, other options such as comp time, more
training, continuing education or the chance to
attend conferences or professional seminars are
good alternatives.
Like Dougherty, Miller also recommends conveying
your disappointment to your boss, but in a constructive
manner. "Ask your boss what you can do in
the future. Ask for advice about how you might
go about getting a better raise or promotion next
time around." It's important to make your
boss your ally so that they have a stake in your
success. "Once you get the advice, and if
you follow it and let your boss know you are following
their advice, it becomes very hard for that manager
not be your advocate," he says.
Miller also says that you can try to negotiate
the timing of a bonus. "Convince your boss
that you should get a bonus and agree that you
will revisit the bonus issue in three months and
if business is better you'll get a special bonus
then. The key to that is to show why your circumstances
are different than anyone else."
Experts don't advise using another offer as leverage
if you are not satisfied with the raise you've
been offered. "It's a very, very risky strategy
and if it appears that you are threatening, it
makes you look disloyal," says Miller. If
you do decide to use this tactic, you must be
willing to walk away from the company if it fails.
"Most significant increases in salary when
you are already with a company result either from
an increase in responsibilities or from concerns
that you might leave. Therefore, any strategy
you use with your current employer should include
an effort to get more responsibility or to make
yourself so invaluable that the possibility of
your leaving would cause immediate concern,"
concludes Miller.
Sacha Cohen is a Washington-based business
and technology writer. Her work has appeared in
The Washington Post, Kiplinger.com, Fast Company,
Oxygen's ka-Ching and other print and online publications.
Cohen has been covering Internet trends and culture
since 1996.
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