asking for a raise

10 Questions to Ask Yourself Before You Ask for a Raise

Paul Michael — Mon, 22 Oct 2018 08:00:12 +0000

When was the last time you got a big raise? We're not talking about the 3 percent raise you should get every year to keep your salary in line with inflation — we're talking about a noticeable pay bump to reward you for all your hard work. Has it been a while?

You may feel like you're long overdue for that financial reward, but asking for a raise without first recognizing if the timing is right can set yourself up for a disappointing answer. So before you ask for a raise, ask yourself the following questions first.

1. Is my current salary where it should be for my position?

Salaries for identical roles vary from company-to-company, state-to-state, and country-to-country. You may not have had a significant raise in many years, but that doesn't mean you should automatically get one. Take a look at a website like Salary.com and search for your current role, your location, and your years of experience. Don't forget to add in any benefits and bonuses you may get. Now, where do you fall on the chart?

If you're right at the top of the bell curve, congratulations; you're getting what the majority of people in your position are getting. If you're to the right of that peak, you're actually earning more than average. It's only if you fall significantly left of center that you should feel a large raise is appropriate. (See also: 5 Times You Should Demand a Raise)

2. When did I last get a raise?

Again, this is going to vary depending on your profession and the current state of your industry. But usually raises are given out annually, so if you had one 10 months ago, you shouldn't expect to get a warm reception when you ask for more money. If it has been many years since you had any kind of raise beyond the meager 2 to 3 percent, and you have an excellent work history, you are definitely right to approach your supervisor and talk about money.

3. When did I start this job?

That could be read one of two ways; either your start date with the company, or the date of your last promotion. Either way, you should really tread carefully if you start asking for more money without a year of experience in that role under your belt.

Now, you could find that certain promises were not kept with regards to commissions, bonuses, benefits, or other ways you were told you'd be compensated. If that's the case, make the reasoning watertight. You took the job based on income you're not receiving, so you would like a bump in pay to make it right.

4. Do I really deserve the hike in salary?

Of course you do, right? Well, maybe not. A fat raise usually accompanies a promotion, more responsibility, or the kind of performance that makes you indispensable. Look at what you've done since the last time you got a raise. Have you been good at everything, or have you been outstanding? Did your performance meet the expectations set by your manager, or did it exceed them? Did you hit deadlines and budgets on the head, or did you come in under budget and ahead of schedule?

Sadly, "good" is just not good enough for most companies these days. They expect a dazzling performance month after month before a raise is on the table. (See also: 9 Ways an Annual Self Review Can Boost Your Career)

5. Do I really want more money, or more job satisfaction?

Money makes the world go 'round, but sometimes we find ourselves wanting more money because the job isn't giving us any other reason to show up. The role may have become stale, or the tasks uninspiring. We're not fulfilling our potential, and to compensate, we want more money in exchange for the torment we endure.

If your motivation for a raise is that the job just plain sucks, do you really want more money to stay in a role that you don't like? Is there a better solution? How about a move to a different department, or asking for more challenging opportunities that will help you grow your career? Money isn't always the answer. (See also: 5 Reasons a Big Paycheck Is Not Worth Staying in a Job You Hate)

6. How's my company doing?

Unless you've been hiding your head in the sand, you should have a good idea of how the company has been doing for the last six months to a year. Is it in a good place, a great place, or have there been troubles?

For a start, any kind of financial issues are going to make your request for money come off as tone deaf. Layoffs, cutbacks, and salary cuts spell trouble for sure, and asking for a raise when everyone is struggling is not going to go over well. Even if you believe you're being underpaid or really deserve the extra money (for example, if someone was laid off and you're doing twice the work), you must be careful how you broach the subject. Before going to the boss, put feelers out with human resources or someone in finance. (See also: The Absolute Worst Ways to Ask for a Raise)

7. Can I justify a pay raise?

"Because I deserve one" is not a good answer to the question, "Why should we give you a raise right now?" In fact, you shouldn't even let your boss get to that question. Instead, make a case for your raise right out of the gate. Start the conversation with something like, "I've been doing a lot of thinking, and I believe I deserve a pay raise for these reasons." Then, clearly and confidently explain those reasons. Don't be pushy, arrogant, or entitled.

Use specifics in your argument. "I've been doing a great job" is way too broad. Instead, list performance figures, additional hours worked, weekend work, increased sales, increased customer satisfaction, or whatever else counts as a big plus in your role. If you're having trouble thinking of any specifics right now, it's probably not the time to ask for a raise. (See also: How to Negotiate a Raise Out of the Blue)

8. How much do I ask for, and how much will I be happy with?

The two numbers are not the same. In fact, the second will probably dictate the first, because in the negotiation game, it's always better if you set the "anchor" point rather than the boss.

Let's say you want no less than a $5,000 raise. You shouldn't ask for $5,000, because it's way too easy for the boss to talk you down from that price point (they sure won't be going up from it unless they're worried you're about to quit).

When you're asked how much of a raise you'd like, go higher than your bare minimum. Maybe you ask for $10,000. If he or she says yes, great! If not, you can start negotiating back down. When it gets down to $5,000, you can accept and be happy. The boss will also be happy that the figure is lower than what you said you wanted. (See also: This Simple Negotiating Trick Puts Money in Your Pocket)

9. Will I accept other benefits instead of money?

Again, is money what you really want, or would you consider other offers that aren't directly tied to salary? For example, what if you're given an additional five vacation days per year? That has real value, especially nowadays when we all seem to be working harder than ever. If not that, would you take an offer that lets you work from home one day per week? Or how about getting additional benefits you may not be getting now, like a higher match for your 401(k), or paid conferences out-of-state (or even out of the country)? Consider everything that you could be offered instead of money, and have them in your back pocket if your request is flat-out refused. (See also: Didn't Get the Raise? Ask for This, Instead)

10. What's my plan if I'm turned down?

Be prepared for the boss to say no. You shouldn't expect to get a raise, or the amount you believe you deserve, even if you think it's overdue. If you walk into the room thinking it's in the bag, and don't have a plan for rejection, things could go badly. You don't want to get upset, angry, or walk out and slam the door.

Instead, thank your superior for his or her time, and ask when a good time would be to revisit the issue. This leaves the possibility of a raise still in the air, and allows you to try again at the appropriate period. Then, go back to doing what you do without holding a grudge or lowering your performance. Work hard, work smart, and that raise will hopefully come soon enough.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Negotiate a Raise Out of the Blue

Samantha Stauf — Mon, 26 Feb 2018 09:30:10 +0000

I want a raise. It's a thought that most people have at some point or another. After all, you're an outstanding employee. You work hard. Of course you deserve a raise.

A yearly or biyearly raise is common, but not a guarantee. In certain instances, it may fall upon you as the employee to ask for an increase in pay.

Raises outside the normal pay structure should be treated like salary negotiations. The more leverage you bring to the table, the higher the chance you'll get something out of the negotiation. Here are a few things to keep in mind as you build your case.

Consider the company

Before you waste time cooking up a strategy, be realistic about the organization that employs you. Is it the type of company that works hard to cultivate and keep talent? Or is there a high turnover rate with little value placed on individual contributions?

If the company doesn't value its workers, you can certainly open the topic of a raise, but the chances of a successful negotiation may not be in your favor. After all, why pay an employee more when there are countless individuals that will do the same job for less? In these circumstance, you would be better served focusing your time on looking for a job elsewhere.

There's also the issue of financials. Is the organization financially stable enough to give you an unplanned raise? If the company isn't in a good place, the chances of obtaining a raise might be less likely. In these instances, you should come to the table with concrete evidence of how you've exceeded expectations in your contributions to the company. It's vital that you prove that a raise will be a long-term investment that could turn the company around. (See also: The Absolute Worst Ways to Ask for a Raise)

Consider your performance

Now, you must ask yourself objectively: Do you deserve a raise?

A raise, especially an unplanned raise, is a financial investment by your employer. Before you even broach the topic, analyze your last six to eight months with the company. Here are a few questions to ask yourself:

Have you taken on new tasks that are outside of your normal duties?
Do you outperform your coworkers?
Do you consistently get verbal or written praise by management for a job well done?
Do you contribute to the development and performance of coworkers?
Do you earn extra financial gains for the company?
Is your current wage below the normal pay for the profession in the surrounding area?

You should, ideally, be able to answer yes to at least a few of the above questions. If you can't answer yes to any of the questions, you probably don't have enough leverage to negotiate a raise successfully. It would be smarter to wait until you have more evidence in your corner before approaching management about a salary negotiation. (See also: 5 Times You Should Demand a Raise)

Preparing for a salary negotiation

As you prepare to ask for a raise, begin to collect evidence that you deserve one. Make a list of your noteworthy projects or accomplishments over the past year. You can write your accomplishments out in a resume, but it's not required. You should at least be able to speak about them in detail if necessary. You can start by:

Making note of any tasks that have been added to your regular duties.
Listing any big projects you successfully completed or led.
Quantifying above-average productivity or success.
Documenting any positive remarks from individuals in management about your performance over the past year.

If you don't already know it, research what the average salary is for other professionals in your field and region. You don't want to try to argue that you deserve a wage equivalent to a big city salary if you work in an area with a lower cost of living and lower salaries overall. You can check Glassdoor or Salary.com for average salary stats in a number of fields and regions.

Be flexible during negotiations

When you do engage in salary negotiations, be flexible. Salary negotiations might not lead to a direct monetary raise. The company might not be prepared to invest more in personnel salaries or they might have a very strict pay structure that management doesn't have the power to override.

Don't be afraid to explore other types of perks or benefits that the company could offer to ensure a long-term partnership. Other perks that might be negotiated are:

The ability to telecommute.
A more flexible work schedule.
Company-funded education or training opportunities.
An increase in paid or unpaid vacation time.
A new cash or share bonus.

If management cannot offer a new perk or benefit, it might be a good opportunity to move the discussion to preparing for potential promotion opportunities. It's not uncommon for management to groom interested individuals for higher level positions within the company.

A salary negotiation, at its core, is a means to talk about how a company and individual can work together to pursue a mutually beneficial long-term partnership. Professionals who approach the conversation from that mindset have a higher chance of success and lower chance of walking away disappointed.

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This article is from Samantha Stauf of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Retirement Planning Moves Every 20-Something Must Make

Dan Rafter — Tue, 31 Oct 2017 08:00:06 +0000

When you're in your 20s, retirement seems pretty far in the future. But you might be surprised: The end of your working days isn't as far away as you think. Even though you're just starting out in your career, you should be taking important steps now to improve your odds of a financially stable retirement later. (See also: Retirement Planning If You're Under 30)

Start saving early

Again, you might think as a 20-something that you're too far away from retirement to worry about it. But saving as early as you can — like, right after you enter the workforce — can pay off big when it's time to retire.

The easiest way to start saving early for retirement is to take advantage of your employer's 401(k) plan. This plan allows you to set aside a percentage of each paycheck in a mutual fund. You contribute every week, and thanks to the magic of compounding, your retirement savings will grow more quickly the more you've contributed. Your employer may also match up to a certain percentage of your contributions. That's free money you never want to leave on the table.

The goal, of course, is to have enough money saved that, with the help of other outside income such as Social Security payments, you'll be able to live a happy and healthy lifestyle after retiring — one in which you won't have to worry about money.

The faster you start putting money away, the easier it is to reach this goal. Financial analysts say you should put away at least 10 percent of every paycheck for retirement starting in your 20s. If you can put away more, that's even better. (See also: 5 Dumb 401(k) Mistakes Smart People Make)

Ask for more money

It's an older study, but 2010 research from Temple and George Mason Universities discovered an interesting trend: If you get a raise early in your career, it can have a compounding effect on your salary for the rest of your working life.

The study used an example of a 25-year-old employee starting out with a $50,000 salary versus a $55,000 salary. Assuming a 5 percent annual pay raise, the employee who started out with an additional $5,000 would earn over $600,000 more during a 40-year career. Just think how far those extra funds could go toward saving for retirement.

The lesson here? Don't be shy about asking your employer for a raise. You might not get $5,000, but even a small raise of $2,000 or $3,000 can pay off over time as you boost your earning power. It's easier to save more money for retirement when you are earning a higher salary. That 10 to 15 percent you save from each paycheck will naturally be higher if those paychecks are larger. (See also: You Should Always Negotiate a Raise: Here Are 10 Reasons Why)

Build an emergency fund

While it's important to set aside money for retirement, it's equally necessary to save money for an emergency fund. As the name suggests, an emergency fund is a pool of money, usually in a risk-free savings account, that you draw from when you need a quick infusion of cash to pay for unexpected events such as a new car transmission or medical bill.

Why does this account matter for retirement savings? If you don't have an emergency fund, you're more likely to cover financial emergencies with your credit card. This leads to a large increase in high-interest debt. If you're then devoting too much money to paying down this debt, you won't have as many dollars to put toward retirement.

Early in your 20s is a great time to start building that emergency fund. Financial experts recommend that you have at least six months' to a year's worth of daily living expenses saved in your emergency account at all times. Start building toward that goal now.

Tackle student loan debt

If you're like many 20-somethings, you're dealing with tens of thousands of dollars in student loan debt. The faster you pay this off, the better.

If you have any extra money, put it toward your student loan debt. Just make sure that your loan servicer is using this extra money to pay off the principal balance and not the interest.

The faster you pay off your student loans, the more money you'll have for saving for retirement. Paying off your college debt might seem like a struggle now, especially when your income is lower, but in a few years, you'll be thankful you did it. (See also: 8 Surprising Ways to Pay Off Your Student Loans)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Signs You Aren't Making Enough Money

Andrea Cannon — Mon, 23 May 2016 09:30:20 +0000

Living paycheck to paycheck can take a toll on your stress levels and emotional wellbeing. It can also greatly impact your financial wellbeing both in the present and in the future. If you aren't confident about your financial future, then it's time to make a change. Here are a few signs that you need to spend less — or make more.

1. Your Bills Are Overwhelming

If you don't make enough to pay your bills every month, then you need to make more. Even paying the minimum amount on your bills is not enough. You should be working to pay off your debt, without having to worry about making enough to buy food every month.

Overdrawing your checking account, paying your bills late every month, or ignoring your financial obligations altogether can make the problem much worse. If you commit any of these bad habits, then you'll have to worry about overdraft fees, bounced check fees, and may even be sent to collections. (See also: How Late Payments Affect Your Credit)

2. Your Budgeting Isn't Enough

The best way to get more out of every paycheck is to simply spend less. Creating a budget can be the right step towards making lasting changes that will pay off big in the end. However, what do you do if you have already created a budget and cut out all the unnecessary spending you can, but still aren't making enough? You'll need to find a way to make more money.

3. You Have No Savings

If you aren't able to pay down your debt and set aside money for your savings and retirement accounts, then you simply need to make more. In the event that there is a large unexpected expense coming your way, you should have some savings to cover it. It is crucial that you set aside money for your future, and if you aren't, then you need to do something to change the present.

It's important to keep your money goals and future finances in mind. It's essential that you are saving for your future, in the event that you experience a pay cut or layoff. Saving for retirement is also one of the most important things you can do for your future self. If you aren't reaching your short and long-term financial goals, then you aren't making enough money.

4. You Keep Relying On Credit Cards

If you find that you are relying on your credit cards just to make ends meet, and are only paying the minimum on your credit cards month after month, you're heading towards prolonged debt and a host of other problems. This can result in a lower credit score and less money available for your savings account. In the long run, you'll also be responsible for higher interest charges and credit card payments.

5. Your Paycheck Disappears in No Time

If you spend the bulk of your paycheck in the first couple of days, then there's a problem. You should have more than just enough to pay your bills. There should be money left to save and invest towards retirement. Everyone has a bad month from time to time, but if you find that your paycheck runs out within the first week of every month, then you may be overspending or simply not making enough.

Special occasions occur for most people several times per year. During these times, you'll want to have a little money set aside (for holidays, anniversaries, birthdays, and other occasions that can cut into your pay). The last thing you want to worry about is breaking out the credit cards just because you need to buy gifts for the kids.

6. You Feel Undervalued

If you feel you aren't being paid enough at your current job, then you may get resentful and less productive. Consider speaking with your manager about what you bring to the table and ask for a raise. The worst they can say is "No."

If you decide to ask for a raise, then you need to first determine what your time is worth. Use a salary calculator or salary comparison site, and find out what the average salary is for your career so that you have that information on your side when you speak with management. (See also: Getting the Most Out of Salary Comparison Sites)

Is It Time to Make a Move?

If you realize it's time to make a move, then there are several steps you can take. If you haven't worked on a budget yet, then it's time to do so. You can also take steps to reduce your rent, find alternate forms of transportation, or simply spend less. You may also need to consider changing employment or taking on a weekend or side job.

Do you know of other signs that a person just isn't making enough? Please share your thoughts in the comments!

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This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: How to Ask Your Boss for a Raise

Ashley Jacobs — Mon, 13 May 2013 10:00:31 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some stellar articles on how to ask your boss for a raise, frugal ways to move, and getting the best price when selling back textbooks.

Why Women Don't Negotiate

Andrea Karim — Wed, 02 Mar 2011 13:00:13 +0000

Back in 2007, I wrote an article on Wise Bread about how women simply need to demand more money when negotiating a salary, either at a new job or an existing one. It's not that I have a long history of excellent salary negotiating skills or anything. Over the years, I've wavered between superb and terrible, depending on what my employment status was at the time. Fully employed but seeking better opportunities? I'm a negotiating whiz. Teetering on the brink of financial collapse? I'm so soft and mushy you could cut me with a butter knife and pay me in Monopoly money. (See also: Conversation Killers: What's Holding You Back from Negotiating?)

I understand the fundamentals of salary negotiation. I know what my skills are worth in the marketplace. That doesn't mean that I have gotten comfortable with negotiating my salary. Even when I know that I have outperformed expectations and really made a difference in the workplace, I find it extraordinarily difficult to say, "Thanks for the offer of a 1% increase, but I'll be needing at least a 6% pay raise."

It's Not Just Our Fault

For years I sort of assumed that this lack of skill was due to me being kind of a weenie. Women aren't really taught to be aggressive, and we are afraid of appearing like money-grubbers in front of our colleagues and supervisors. But this is our own problem, right? I certainly assumed so, because many financial gurus (ahem, Suze Orman) taught that a take-no-prisoners attitude was the key to success. I figured that I was simply too weak to get on board and demand more money, and that weakness was my own fault.

So, a few weeks ago, when I heard a story on NPR about women's lack of negotiating skills, I was thinking, "Yo, NPR, I'm really happy for you, and Imma let you finish, but I wrote the BEST ARTICLE OF ALL TIME about this topic four years ago." Because, honestly, what else is there to say about women learning to negotiate? Women don't haggle well because they find it scary. Women are kind of weak, and they need to learn not to fear demanding more money. That includes me, of course. Despite my own advice about how to negotiate for more, my heart still jumps in my throat during my annual salary review.

"Women need to get over that kind of thing," I muttered, only half-listening to NPR. And then I heard this part of the story:

[Carnegie Mellon Professor Linda] Babcock showed people videos of men and women asking for a raise, following the exact same script. People liked the man's style and said, "Yes, pay him more." But the woman?

"People found that to be way too aggressive," Babcock says. "She was successful in getting the money, but people did not like her. They thought she was too demanding. And this can have real consequences for a woman's career."

To be clear, both men and women thought this way. (Emphasis added)

The issue is not that women are weak. It's that for women, negotiating is risky. Women are not incorrect in being worried that asking for a raise will make them seem aggressive. They WILL be perceived as aggressive, in a negative way, even when they follow the exact same script as a man, asking for the same thing. In the business world, aggressiveness is seen as a negative trait in women, but a positive one in men.

We actually know exactly how we will be perceived when we ask for more. Women don't labor under the misconception that asking for higher pay might be seen as aggressive; we live in a world where this is a fact.

And it's not just men who see women this way; we see ourselves this way.

Part of me wants to say, "Who cares? People need to learn that women can be aggressive." But this is an ingrained thought process, and those can be hard to change. Also, I've worked at companies with women who I loathed because of their overly aggressive and bossy nature. I'm as bad as anyone else when it comes to thinking that an aggressive, business-minded woman is just, to be frank, kind of a bitch.

What Does Lack of Negotiation Cost Women?

I've been thinking about the Carnegie Mellon study pretty much every day since the story first aired, and it bothers the heck out of me. It bothers me because I can completely believe the results of the study, in which a woman who acts exactly the same as a man is seen by observers as unlikable.

On one hand, the study involved a small sampling of people, and only two subjects — one man and one woman. I have no idea if there really WAS something about this woman who struck totally reasonable study participants as really unlikable. But it's my suspicion that the issue really is deeper than that, and that we expect women to ask for things in a certain way, and men in another way.

The problem with this expectation is that it ultimately hurts women. Knowing that we are going to be seen as unlikable when we state our cases for getting a raise makes us less likely to ask for a raise.

"I tell my graduate students that by not negotiating their job at the beginning of their career, they're leaving anywhere between $1 million and $1.5 million on the table in lost earnings over their lifetime," Babcock says.

And her figure doesn't even include company retirement contributions, which are also based on a share of salary.

See that? Not asking for a raise can make a difference of $1 million in lost earnings over your lifetime. That's not just worrisome; it's tragic.

What Should Women Do?

How should women negotiate pay raises? After all, it's not fair to lose $1 million in earnings over the course of your career. According to the researchers who conducted the study:

Babcock and Harvard researcher Hannah Riley Bowles wanted to find a way for women to ask for more yet avoid this societal backlash. They tested various strategies and found some that do work. Women can justify the request by saying their team leader, for example, thought they should ask for a raise. Or they can convince the boss their negotiating skills are good for the company. The trick, Babcock says, is to conform to a feminine stereotype: appear friendly, warm, and concerned for others above yourself.

I cannot possibly describe how much this idea rankles my Mount Holyoke-educated feminist brain. What is this, Mad Men? Why on Earth should I present myself as more concerned for everyone other than myself when asking for more money? Why shouldn't I expect to be able to present my case for increased salary in an honest way, regardless of whether or not the presentation isn't immediately palatable to a superior? Isn't that how social change occurs?

On the other hand, which issue is more important at the moment: My salary or the societal expectations that are placed upon women? I don't mean to suggest that I alone, by negotiating like a man, will somehow change the course of cultural norms and allow women to be at least as aggressive as men in the realm of salary negotiations. I alone do not have that kind of power.

My Negotiation Debate

Should I still charge forward and hope that other women will do the same, thus forever changing the way that female negotiating skills are looked at? Or should I use my feminine wiles to increase my salary, even if it means communicating in a way that I find, frankly, rather repressive? I've certainly used womanly charms to get what I wanted before, even though I am rather loathe to admit it. Then again, I don't know if flirting with a store clerk for a discount is actually hurtful to my fellow women, because it seems like such a harmless act.

When it comes to the world of salary negotiation, I am certainly torn. My salary, and its steady, incremental increase are crucial to my long-term financial security. As such, my concern over my salary might outweigh my concern for how women, and American women in particular, are forced to be passive-aggressive in their requests for increased monetary compensation. Wouldn't it be nice, though, if this was an issue that had already been resolved?

How do other women feel about this? Would you rather be straightforward in your negotiating? Or have you already worked out a system for asking for pay raises?

This article is from Andrea Karim of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Underpaid? Here’s How to Fix It.

Nora Dunn — Tue, 09 Nov 2010 12:00:11 +0000

Are you underpaid? If yes, are you prepared to do something about it? The folks at GetRaised.com are willing to bet $20 that you’ll have your raise inside of six months with their help.

Find Out Where You Are on the Pay Scale

By simply inputting your career, location, and income data, GetRaised will tell you if you may be underpaid or not. Their sophisticated salary engine derives this conclusion from amalgamated government data, user data, and current job postings. In putting together this research, GetRaised noted that a huge majority of employees are actually underpaid. Some know it and aren’t sure how to ask for a raise, while others wrestle with issues of whether they deserve a raise or not.

GetRaised solves both of these problems by telling you if you are indeed underpaid, and then giving you the tools to successfully get a raise.

There Are Good Reasons to Ask for a Raise

The majority of the team behind GetRaised started off at Thrive, an online financial planning service. “When our data scientists were looking at the Thrive data, we noticed that women were actually better savers than men in that they were saving a higher percentage of their income, but because their income was so much lower, they were actually saving less money in total,” says Matt Wallaert, Lead Scientist at GetRaised.com.

And concerns about the increasing gender-wage gap extend to everybody — male, female, overpaid, and underpaid.“When people feel underpaid and undervalued, they aren’t good, productive workers. They still go to work, but they go feeling miserable, and they make other people miserable,” says Matt. And this contagious attitude can create some pretty miserable workplaces.

How GetRaised Works

Step One

Input your career and location data for free on the GetRaised website to discover if you are underpaid. If you are, move on to step two. (If not, pat yourself on the back for having an awesome employer.)

Step Two

Sign up to “Get Raised” for $20. They’ll ask you a few more questions about your goals, employer, job, and circumstances. From this you’ll receive a custom “Raise Request,” which is a letter for your boss that logically outlines your case for getting a raise and requests a meeting to discuss it.

Step Three

You’ll receive a Raise Guide, which walks you through the process of getting a raise and gives you tips for making your request successful. In addition to the guide, you’ll also gain access to your own Process Page, an online tool that keeps you on track to getting that raise, complete with checkpoints, reminders, and task lists.

If you follow the process above and don’t get a raise in six months, then your $20 is refunded from GetRaised. And since most raises are considerably more than $20, this appears to be a bet you can’t lose.

Customer Support and Success Rate

Knowing this basic information about GetRaised, I had a few more questions about usability of — and rationality behind — the program. For example, I was concerned about customer service and their true dedication to helping people get the raises they deserve. Can a computer program alone really determine if you're underpaid and help you get a raise?

“While the site is designed to be self-contained and to have everything you need, customer support is something that is important to us: If you get stuck or have a special situation, you can always ask us and we’ll try to help, usually within a few hours,” says Avi Karnani, Lead Strategest at GetRaised.com. And it’s not some underpaid (ha ha) pencil-pusher helping you either; even founding members of the team have been known to hop on the phone to help customers with their raise strategies.

What is the success rate of Get Raised customers so far? “GetRaised went live in early October, so it's still pretty early,” says Matt. “There isn't a lot of time for people to have generated a raise request, to have turned it in, to have had their meeting, and to have received their raise. That said, of the people who have gone through the process so far, all but one has received a raise, and that young gent is working for a startup that simply couldn't afford an increase: They instead gave him increased equity (which is the currency they have).”

Debbie (who asked that her last name be withheld) had an inkling that she was underpaid when she checked out GetRaised. And after going through the GetRaised process, she got her raise. “The most helpful aspect of GetRaised for me was that the process guided my focus to what matters: Achievements, responsibilities and such. It's easy to get lost in details when trying to examine the job in which you're immersed on a day-to-day basis. GetRaised cleared the fog and helped me clearly identify what I needed to say to make my point.”

And try as I did to find a disgruntled GetRaised customer, I couldn’t. As Debbie says, GetRaised is “good value and a win/win situation. You'll either get your raise, or your money is refunded.”

Plus, financial assistance is available. “We built GetRaised as much for waitresses as physicists,” says Matt. So if you can’t afford the $20 package, then you can apply for sponsorship. GetRaised will find an individual or organization willing to pay $10, and GetRaised will cover the rest.

Tips for Getting a Raise

Here are a few of the tips for successfully getting a raise that GetRaised walks you through:

It’s Not All About You

Refrain from telling your boss that you “want” or “deserve” a raise. They care surprisingly little about what you want, and much more about how you add value to the business.

Keep Track of Your Accomplishments

Note dates of tenure, certifications, training programs, awards, or initiatives you spearheaded that resulted in new business. This is great fodder for creating your case as a raise-worthy employee.

Know Your Company’s Budget Calendar

Asking for a raise just after the annual budgets have been submitted won’t be very successful if there isn’t money in that budget for you.

Go Above and Beyond

“Raises really are earned more than given,” says Avi. Although this is true, don’t go and give up all your vacation time in an attempt to become the model employee. I believe that even when you’re gunning for a raise, a balanced approach to work — and life — speaks volumes.

Know What Else to Ask for If Money Isn’t Available

There are lots of tax-free employee perks you can ask for if a monetary raise isn’t in the cards. GetRaised’s Raise Guide identifies these alternative options and helps you to pursue them.

Right now, the only thing disheartening limitation I see with the GetRaised program is that only US residents can take advantage of it. Then again, you’ve got to start somewhere.

Are you underpaid? Go to GetRaised.com to find out. You’ve got nothing to lose, and possibly a higher paycheck to gain.

Writer's note: I have no affiliate or vested interest in GetRaised.

This article is from Nora Dunn of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Ways to Bug Your Boss for More Money – and Get It!

Linsey Knerl — Tue, 31 Aug 2010 14:00:08 +0000

Everyone knows we're in a recession, but let's face it: You may deserve to get paid much more than what you're getting now! Before you blow off the idea that your work is worth a bump in the pay scale, check out these four clever tips for putting in a good word about your worth. (See also: Underpaid? Here's How to Fix It.)

Wrangle References

This is an area where having an effective networking style can really pay off. Asking your current customers, co-workers, and colleagues for a few kind words about your performance isn't just useful during a hunt for new work. It can be a powerful tool in moving up your current career ladder, as well. You don't have to be transparent in your reason for asking; a simple "Would you mind sending an email with your thoughts on our working relationship?" will do. Save the best in a file to arm yourself with at your next performance review or compensation discussion.

Research Rates

Some companies are large enough to set their own industry rates — and get them. Others are completely oblivious to what someone in your position should be making. If you've caught wind that your job tasks are on par for the course of a higher-ranking (and higher-paying) position, bring this up to your boss. Explain that you realize that they may not have the cash to pay the going rate for someone with your expertise, but would they meet you halfway?

Value Added

Often, it's not about what they hire you to do that matters. If you are especially well-connected, possess a task or skill that puts you at a unique advantage, or have a willingness to perform beyond your peers (24/7 availability, maybe?), it's something that you should be paid well for. Demand that you get compensated for this value by letting management know how much they are getting!

Show Them the Money

For many companies, it's really just about dollars and cents. Did you save the company $X over last year? Would a process you helped to develop bring in extra money over time? What's the bottom line of your individual worth to the company? If it's well over what they are paying you, now's the time to document and sell your potential return on investment (ROI) with examples of how you can continue to grow in value.

Once you've gotten the OK to discuss a pay raise with your boss (in the form of a performance review or other scheduled meeting), come prepared with facts for each of the four methods above, and be sure that there are no outside distractions that could derail your attempts. Be confident, make positive forward-thinking statements, and never apologize for your request for more cash. Remember, you're worth it — now it's time that your boss knew, too!

This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

asking for a raise

10 Questions to Ask Yourself Before You Ask for a Raise

1. Is my current salary where it should be for my position?

2. When did I last get a raise?

3. When did I start this job?

4. Do I really deserve the hike in salary?

5. Do I really want more money, or more job satisfaction?

6. How's my company doing?

7. Can I justify a pay raise?

8. How much do I ask for, and how much will I be happy with?

9. Will I accept other benefits instead of money?

10. What's my plan if I'm turned down?

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How to Negotiate a Raise Out of the Blue

Consider the company

Consider your performance

Preparing for a salary negotiation

Be flexible during negotiations

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4 Retirement Planning Moves Every 20-Something Must Make

Start saving early

Ask for more money

Build an emergency fund

Tackle student loan debt

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6 Signs You Aren't Making Enough Money

1. Your Bills Are Overwhelming

2. Your Budgeting Isn't Enough

3. You Have No Savings

4. You Keep Relying On Credit Cards

5. Your Paycheck Disappears in No Time

6. You Feel Undervalued

Is It Time to Make a Move?

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Best Money Tips: How to Ask Your Boss for a Raise

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How GetRaised Works

Step One

Step Two

Step Three

Customer Support and Success Rate

Tips for Getting a Raise

It’s Not All About You

Keep Track of Your Accomplishments

Know Your Company’s Budget Calendar

Go Above and Beyond

Know What Else to Ask for If Money Isn’t Available

4 Ways to Bug Your Boss for More Money – and Get It!

Wrangle References

Research Rates

Value Added

Show Them the Money