If you want to save more money or have more in order to get by, one way is by finding a way to increase your income. A simple way to do this is by asking for a pay increase. Asking for a raise is a task that can seem difficult to do. Most people are afraid to discuss money, especially with their employer. But you have to remember that your employer is usually the one who decides how much money you get. There are a few different strategies to getting a raise that I will go over.
Before you do any of these strategies, you will want to research pay information on a few different online sources for your field. You want to make sure that you know how much of a raise to ask for or why you should be getting paid more. This will help you build a case for a raise, or better negotiate your pay amount if you decide to look for a higher paying job.
Strategy One: Wait for Your Performance Review
I think that the most common way to get a raise is to wait for your performance review, usually done every six or 12 months. It is not uncommon to receive a raise if your performance is good over the time period, but it is also not guaranteed. This strategy is best done about 12 months after your job started or 12 months after your last raise, because generally it is expected to get a raise about once a year, if one is to be received. It is also best to ask for a raise at this time, rather than simply hoping your company will offer you a raise. If this strategy doesn’t work and you feel like you need a raise, it’s a good time to use strategy three and land a higher-paying job.
Strategy Two: Ask for a Raise
The second strategy is best for when you don’t have regular performance reviews. Some companies forget or simple don’t have a process in place to do performance reviews. In this scenario, I recommend at least being on the job six to 12 months, or no sooner than six to 12 months from your last pay increase. For this strategy, schedule a time to talk to your boss, or if you have a one-on-one meeting with your boss that is also a good time to do this. Your boss may decide to give you a raise, or may decide not to. If you do this, at least you will know if you can get a raise, and if you can’t with this strategy, it’s time to use strategy three.
Strategy Three: Land a Higher-Paying Job
Just because you land a higher-paying job doesn’t mean you have to leave your current company and go to it. It could be a good idea, especially if the benefits are better or if it doesn’t seem like there is much more room to advance in your current position. The point I will make with this strategy is that if you have a job offer that pays more, you now have leverage. So now you can tell your boss that you got another job and how much it pays. You can ask that they match the salary, and if they don’t, you give your two weeks notice and move on to your higher paying job. There’s almost no way to lose with this situation because if you don’t land a raise at your current job, you have the higher-paying job to fall back on.
I used this strategy at one point in my career. I was being paid 18 dollars an hour at the time. I landed a job paying $64,000 a year. I told my boss I was going to have to give notice, who asked if there was any way I would consider staying. I told my boss I would think about it. I then came back into the office and said that the only way I could stay at the current position would be if they would pay me 32 dollars per hour. I didn’t think they would do that and was completely prepared to move on to my next position, but to my surprise my boss said maybe but would have to check with accounting first. It came back as a yes, and I got myself a 14 dollar hourly raise, or nearly 30 thousand more dollars. My story took a stroke of luck, but it would be possible for most people to be able to get some type of raise or pay increase using the same type of method.