Working in finance means it’s all dollars and cents, and everyone is aware of that when it comes to your job and your pay. There is a certain cold, matter-of-fact logic in the financial world: we all know why we are here, it’s a contract, I do the job, you pay me. In this environment, asking for a raise is usually par for the course, I used to have a former co-worker that always told me, “we have a saying in Brazil: the baby that doesn’t cry doesn’t get fed.”

That being said, not everyone is in finance or in an environment where it is normal to ask for a raise. Asking for a raise can come across as cold, calculated and greedy. Or at least those of us who don’t want to be perceived as such may think that. At the same time, no one wants to be underpaid, there is some research that points to some people (especially women) tend to be underpaid because they tend to not negotiate as much. Because of this, I wanted to share a bit of my own experience on asking for a raise, albeit I have to admit that even though I still negotiate, I am still a work in progress, I could probably do more.

Step 1: Honestly Evaluate Your Situation

When people are laid off or fired, their initial reaction is usually to blame other factors or those around them, sometimes these are valid, sometimes you just don’t fit in the culture of an organization and that’s ok. Many people though, once you give them enough time to heal and evaluate the situation more objectively, will be able to point out the areas where they either didn’t meet expectations or it was time for them to make a move somewhere else on their own accord. Before you get laid off or rejected for a raise, this is the first step to take: an honest assessment of yourself and what you have achieved at your job.

Step into your boss’s shoes, would you give yourself a raise if you were in their position? How do you distinguish yourself from other candidates? Make this assessment as cold as possible, take yourself out of it completely. It doesn’t have to be all performance related either.

For example, many companies have diversity targets nowadays, are you one of the few females or minorities in your area? If so, use this leverage. To further motivate yourself, assume they are underpaying you anyway, because statistics show they likely are.

Step 2: Identify Areas of Improvement

If you have identified some areas where you don’t match up, then rather than ask for a raise right away, take some time to work on the areas where you objectively need to improve. This is where you may need to put more thought into your day to day. Try to get into the head of your boss, picture yourself doing their job and what may worry them. Thinking like this will help you anticipate their needs and what they may want before they ask for them. Most managers will attest that this is extremely valuable for them. Think about it, this takes some of the weight off of their shoulders. They likely already have a large amount of pressure on them, if an employee is helping to lighten that load or even tackle things before they have to make a tough decision, they will be more than willing to fight for you when it comes time for a raise.

If that doesn’t work or if you don’t have that much interaction with your manager to make that big impression, then this may be where you need to get creative. Step back and look at the organization as a whole, where do they need improvements? Where are they lacking? What may they be neglecting? Identifying these things end up creating opportunities for yourself. If you can identify an issue and highlight why it’s important, the next easiest step is to volunteer yourself to tackle it. This way, even if there are no extra projects to pick up to distinguish yourself, you end up making a project. Don’t just think about the present job either, make it something that can also go on your resume for the next job, something that highlights your capacity to look above the fray at the wider organization. This way, even if it doesn’t achieve your end in the near term, it may prove useful in the long term.

Step 3: Shore Up Your Defenses

Again, think from the perspective of a manager, if an employee asks for a raise and you don’t give it to them, they may leave. If they don’t think you are that much of a go getter or have skills that another employer would readily want, then they will treat you that way and may feel that they can get away with denying you that raise.

For this reason, and also to build your confidence, you may want to go out and look for another job as a fail safe. It helps to know you have the potential for another option out there rather than just sinking into rejection if your ask is not met.

This also may give you an idea as to whether you are being paid the market rate. I will never forget the first time I asked for a raise, I learned I was making about 15% below the market salary. Nothing will ruin your day more than knowing you are making a good amount less than those working around you or your peers at other organizations.

You want to be paid what your worth, it’s a universal concept. However not everyone is willing to do what it takes to get what their worth and that is where the negotiators set themselves apart.

Step 4: Mental Preparation

Once you have your reasons, have an idea of your worth and have a potential backup, you have to push yourself to ask. Go through what you would like to say, offering the logical justifications as to why you don’t feel you are getting what you are worth at the job. Even if you do have a solid backup, do not threaten to leave, if you manager is smart, they will figure you already have an alternative lined up.

Remember that the worst they can say is no. They won’t fire you and they won’t demote you, they are managers, this is a part of their job and you likely are not the first to ask. Remember to calmly cover your points and lay out the reasoning as to why you deserve this, your boss may get busy too and be stuck in their world, maybe they haven’t taken into account the time and dedication you have been putting into something. They may have not had the time to sit back and process unless you bring it to their attention.

Once you have your reasons and how you want to present them. Put it in a mental box and leave it for the day you ask. Remember to reserve a time, like in a separate room and one on one, to present this ask to your boss. You don’t want to give them an out or let them conveniently be distracted, you want to pin them down and make them sweat a little. Try to do it in the morning if you can. This is when most people are alert and their brain is functioning at its peak, it will help you react better and to have them process the alternatives of not giving you a raise more deeply.

Be ready for questions. Managers, especially those in tune with the market will argue that many people are not getting salary increases, be prepared to stand your ground and stick to why you deserve it. You don’t have to fall into the statistic of sluggish wage growth despite the booming jobs market currently.

Source: nytimes

Conclusion

Most importantly, don’t let fear get in your way. All the possibilities you are weighing are based on hypotheticals that only you have invented, this is why most people psych themselves out into not even asking in the first place. This ends up solving nothing because you continue in your resentment to being underpaid and it may affect your performance. It makes your manager less of a good fit for you because they don’t know your needs or why you may feel resentful or unhappy. Take the plunge and take a risk, down the road looking back, you won’t regret it.

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