Emerging CPAs

Know How to Ask for a Raise

Asking for a raise can be tricky. Problems arise because most people don’t realize you aren’t really asking, you’re selling yourself. To give a good sales presentation concerning your worth, you must know yourself, know your boss, and know your competition.

Four things you must know before thinking about negotiating a raise:

• Who is your competition? Research what other professionals in your geographic area, and with your title, are making.
• What’s your minimum? Determine both the salary you want and the salary you will accept. The area in between is your zone of possible agreement.
• What can the company afford? If your company is publicly traded, read the quarterly earnings report filed with the SEC. If not publicly traded, look around. If people are being laid off and desks remain empty, now is probably not the best time to expect a raise.
• Who are getting the raises? Office superstars often get raises because the company wants to keep its best performers. If you’re not sure if you’re in this group, then you’re not. You will want to work hard to get into this group.

Once you know where you stand, be prepared to make your pitch. You may only get one shot. Avoid the five biggest mistakes made at the negotiating table:

• Don’t act as if you are entitled. This makes you look immature and unprepared.
• Don’t tell your boss why you need the money. This is business. Build your case by making a list of your accomplishments. Don’t be bashful, but be careful not to be boastful. Stop short of drawing the conclusions for your boss, let the numbers tell your story.
• Don’t compare your salary to your colleagues. Many companies keep salaries confidential, so this makes you seem unprofessional.
• Don’t threaten to quit. This is a sign of disloyalty. Nobody wants to give more money to someone who isn’t committed to the firm.
• Don’t overkill. There is no need for a flashy presentation. Let your numbers tell your story.

Try to remember that sometimes the biggest perks are not always monetary. If your company can’t give you more money, then ask about tuition assistance to get an advanced degree or increased health benefits. A good negotiator knows that all reasonable requests are on the table.