How do I ask for a raise in this tricky situation?
September 19, 2013 7:59 AM Subscribe
How do I negotiate a raise given an increased cost of living, lower-than-median pay, but also a list of great accomplishments and accolades? Do I present it all, just parts of the situation, or something else? I know that traditionally you just make a case for your value to the company and leave it at that, but I feel more is at play here.
I am 26 years old and have been employed at Company M for 3 years. In those three years, I have progressed from an essentially minimum-wage employee to a manager-level position within the top ~15% of the company, though the company is small (under 75 employees). I am currently paid hourly (non-exempt). I am very close with many of the higher-ups (President, Director of Operations) that I would be speaking to about this raise and feel I can speak candidly.
I would like a significant raise for a myriad of reasons:
1. I am pretty far under the median for my position. Median is 55k, I make 41k. I feel undervalued. I would be satisfied making 50k/year gross pay, but that jump is big.
2. My cost of living (tri-state area, expensive) compared to my salary is now cutting it close, and I don’t have the ability to save anything outside my 401k, let alone saving up for a car or house.
3. Our healthcare costs are jumping significantly in November, to the tune of an additional $200/mo., plus increased costs for prescriptions and doctor’s visits (Once this happens, I will be spending more than I am making unless I do drastic things to save money).
4. Our VP of Operations just quit unexpectedly, and I worked directly under him. I will likely be taking on many additional responsibilities.
5. My work is of excellent quality, and I am habitually commended on speed/accuracy/quality/communication skills/ etc. At a recent work function with our top partner, the president referred to me as ‘Company M’s MVP.’
Reasons that may hurt my chances:
1. I negotiated a significant raise in February of this year, from $17.50/hour to $20/hour, when my position changed from Data Specialist to Data Manager.
2. I am hourly because my chances of going salaried are slim to none; I am out of the office more than most due to medical issues and other things, it would be unlikely for me to work more than 40-45 hours a week. Company M has traditional values and salaried employees typically are expected to work 50+ hours regardless of the quality/speed of their output. My number of days out of the office has been a sore spot with management despite my numerous accolades and many accomplishments.
3. Company M currently has a lawsuit pending and several unexpected unemployment requests, and is in the process of purchasing a new building – I may hear the excuse that money is tight. (I know they have the wiggle room to pay me and others a lot more.)
4. May be seen as opportunist, as my superior just quit and I am suddenly seeking a raise.
In my heart of hearts, I know I am worth more, even more than I would be asking for. My timeline is growing slim, as in November I will get booted off my father’s fantastic health insurance and by then I need to either be making more money here to cover the not-so-good insurance’s costs, or find a job that pays better and has better benefits.
I really do like my job and especially love the people I work with. I really do not want to leave, but will if I cannot make it work for me. I have already been looking at jobs in the area and have posted my resume, to test the waters.
My question is: How do I phrase my request for a raise/how do I approach this? I would traditionally just speak of my accomplishments, but I feel the situation is different now. Is this likely to go over badly? I have no idea what to do.
I have set up a throwaway email at companymraise@gmail.com.
Thanks, all.
I am 26 years old and have been employed at Company M for 3 years. In those three years, I have progressed from an essentially minimum-wage employee to a manager-level position within the top ~15% of the company, though the company is small (under 75 employees). I am currently paid hourly (non-exempt). I am very close with many of the higher-ups (President, Director of Operations) that I would be speaking to about this raise and feel I can speak candidly.
I would like a significant raise for a myriad of reasons:
1. I am pretty far under the median for my position. Median is 55k, I make 41k. I feel undervalued. I would be satisfied making 50k/year gross pay, but that jump is big.
2. My cost of living (tri-state area, expensive) compared to my salary is now cutting it close, and I don’t have the ability to save anything outside my 401k, let alone saving up for a car or house.
3. Our healthcare costs are jumping significantly in November, to the tune of an additional $200/mo., plus increased costs for prescriptions and doctor’s visits (Once this happens, I will be spending more than I am making unless I do drastic things to save money).
4. Our VP of Operations just quit unexpectedly, and I worked directly under him. I will likely be taking on many additional responsibilities.
5. My work is of excellent quality, and I am habitually commended on speed/accuracy/quality/communication skills/ etc. At a recent work function with our top partner, the president referred to me as ‘Company M’s MVP.’
Reasons that may hurt my chances:
1. I negotiated a significant raise in February of this year, from $17.50/hour to $20/hour, when my position changed from Data Specialist to Data Manager.
2. I am hourly because my chances of going salaried are slim to none; I am out of the office more than most due to medical issues and other things, it would be unlikely for me to work more than 40-45 hours a week. Company M has traditional values and salaried employees typically are expected to work 50+ hours regardless of the quality/speed of their output. My number of days out of the office has been a sore spot with management despite my numerous accolades and many accomplishments.
3. Company M currently has a lawsuit pending and several unexpected unemployment requests, and is in the process of purchasing a new building – I may hear the excuse that money is tight. (I know they have the wiggle room to pay me and others a lot more.)
4. May be seen as opportunist, as my superior just quit and I am suddenly seeking a raise.
In my heart of hearts, I know I am worth more, even more than I would be asking for. My timeline is growing slim, as in November I will get booted off my father’s fantastic health insurance and by then I need to either be making more money here to cover the not-so-good insurance’s costs, or find a job that pays better and has better benefits.
I really do like my job and especially love the people I work with. I really do not want to leave, but will if I cannot make it work for me. I have already been looking at jobs in the area and have posted my resume, to test the waters.
My question is: How do I phrase my request for a raise/how do I approach this? I would traditionally just speak of my accomplishments, but I feel the situation is different now. Is this likely to go over badly? I have no idea what to do.
I have set up a throwaway email at companymraise@gmail.com.
Thanks, all.
1. I am pretty far under the median for my position. Median is 55k, I make 41k. I feel undervalued. I would be satisfied making 50k/year gross pay, but that jump is big.
This is a good reason. Your management has to know that you are in danger of being poached by the average competitor if they pay less. Don't actually say that, but pointing out the median in your area is fair.
2. My cost of living (tri-state area, expensive) compared to my salary is now cutting it close, and I don’t have the ability to save anything outside my 401k, let alone saving up for a car or house.
Not their problem, except as it relates to 1. That's why the median is higher in your area, after all.
3. Our healthcare costs are jumping significantly in November, to the tune of an additional $200/mo., plus increased costs for prescriptions and doctor’s visits (Once this happens, I will be spending more than I am making unless I do drastic things to save money).
Highly valid reason.
4. Our VP of Operations just quit unexpectedly, and I worked directly under him. I will likely be taking on many additional responsibilities.
Another highly valid reason, if you can enumerate the additional responsibilities you'll be taking on. Don't assume that you'll get more to do, but don't assume that you won't. If the reply is "Nah, you won't have to do any more stuff," get it in writing.
5. My work is of excellent quality, and I am habitually commended on speed/accuracy/quality/communication skills/ etc. At a recent work function with our top partner, the president referred to me as ‘Company M’s MVP.’
Helpful to point out.
Reasons that may hurt my chances:
1. I negotiated a significant raise in February of this year, from $17.50/hour to $20/hour, when my position changed from Data Specialist to Data Manager.
Per 4 above, if your duties are about to change, the fact that your duties changed seven months ago isn't relevant.
2. I am hourly because my chances of going salaried are slim to none; I am out of the office more than most due to medical issues and other things, it would be unlikely for me to work more than 40-45 hours a week. Company M has traditional values and salaried employees typically are expected to work 50+ hours regardless of the quality/speed of their output. My number of days out of the office has been a sore spot with management despite my numerous accolades and many accomplishments.
You get the work they give you done. Unless you're client-facing to the point that there is a good reason you should be there two hours later than standard work hours, this should be immaterial.
3. Company M currently has a lawsuit pending and several unexpected unemployment requests, and is in the process of purchasing a new building – I may hear the excuse that money is tight. (I know they have the wiggle room to pay me and others a lot more.)
If they're buying a new building, they have money on hand. (Don't worry about other people.)
4. May be seen as opportunist, as my superior just quit and I am suddenly seeking a raise.
Back to 4 above, if your superior just quit and you're getting more work to do because of it, then it's not opportunist to demand compensation for that.
How do I phrase my request for a raise/how do I approach this?
The same way you would normally ask for a raise. "Boss, here's the things I do for this company. People doing these things for other companies make $X. I would like to be making $Y."
I would traditionally just speak of my accomplishments, but I feel the situation is different now. Is this likely to go over badly?
Could be. Without knowing more about your company's culture and your specific superiors, we can't say for sure either way. But wouldn't you rather know whether you're working for people who don't want to pay you the appropriate wage for the services you provide?
posted by Etrigan at 8:09 AM on September 19, 2013 [1 favorite]
This is a good reason. Your management has to know that you are in danger of being poached by the average competitor if they pay less. Don't actually say that, but pointing out the median in your area is fair.
2. My cost of living (tri-state area, expensive) compared to my salary is now cutting it close, and I don’t have the ability to save anything outside my 401k, let alone saving up for a car or house.
Not their problem, except as it relates to 1. That's why the median is higher in your area, after all.
3. Our healthcare costs are jumping significantly in November, to the tune of an additional $200/mo., plus increased costs for prescriptions and doctor’s visits (Once this happens, I will be spending more than I am making unless I do drastic things to save money).
Highly valid reason.
4. Our VP of Operations just quit unexpectedly, and I worked directly under him. I will likely be taking on many additional responsibilities.
Another highly valid reason, if you can enumerate the additional responsibilities you'll be taking on. Don't assume that you'll get more to do, but don't assume that you won't. If the reply is "Nah, you won't have to do any more stuff," get it in writing.
5. My work is of excellent quality, and I am habitually commended on speed/accuracy/quality/communication skills/ etc. At a recent work function with our top partner, the president referred to me as ‘Company M’s MVP.’
Helpful to point out.
Reasons that may hurt my chances:
1. I negotiated a significant raise in February of this year, from $17.50/hour to $20/hour, when my position changed from Data Specialist to Data Manager.
Per 4 above, if your duties are about to change, the fact that your duties changed seven months ago isn't relevant.
2. I am hourly because my chances of going salaried are slim to none; I am out of the office more than most due to medical issues and other things, it would be unlikely for me to work more than 40-45 hours a week. Company M has traditional values and salaried employees typically are expected to work 50+ hours regardless of the quality/speed of their output. My number of days out of the office has been a sore spot with management despite my numerous accolades and many accomplishments.
You get the work they give you done. Unless you're client-facing to the point that there is a good reason you should be there two hours later than standard work hours, this should be immaterial.
3. Company M currently has a lawsuit pending and several unexpected unemployment requests, and is in the process of purchasing a new building – I may hear the excuse that money is tight. (I know they have the wiggle room to pay me and others a lot more.)
If they're buying a new building, they have money on hand. (Don't worry about other people.)
4. May be seen as opportunist, as my superior just quit and I am suddenly seeking a raise.
Back to 4 above, if your superior just quit and you're getting more work to do because of it, then it's not opportunist to demand compensation for that.
How do I phrase my request for a raise/how do I approach this?
The same way you would normally ask for a raise. "Boss, here's the things I do for this company. People doing these things for other companies make $X. I would like to be making $Y."
I would traditionally just speak of my accomplishments, but I feel the situation is different now. Is this likely to go over badly?
Could be. Without knowing more about your company's culture and your specific superiors, we can't say for sure either way. But wouldn't you rather know whether you're working for people who don't want to pay you the appropriate wage for the services you provide?
posted by Etrigan at 8:09 AM on September 19, 2013 [1 favorite]
As long as you get your work completed and are not perpetually behind, the less hours should be a positive. Costs them less for same work.
posted by JohnnyGunn at 8:12 AM on September 19, 2013
posted by JohnnyGunn at 8:12 AM on September 19, 2013
So you're being an opportunist, it's America! We like that sort of thing. You should always capitalize on opportunities.
Just ask for what you want. Get a meeting with the highest ranking person there who can make the decision and ask for what you want. The less you say, the better. They know who you are and what you're doing, you don't have to tap dance for them.
"Since Pete has moved on, I'll be taking on more of the Ops role, I think it's a good time for me to become a full-time, salaried employee, with an appropriate bump in pay. I'm thinking that the ballpark of $55k (ask for more than you'd be happy with so you have room for negotiating) is about what others with my tenure and responsiblities are getting."
All that other stuff is static. So you work fewer hours? So you just got more money a few months ago? So the benefits are increasing in price? Not worth discussing and not relevant to your discussion.
Now, don't give any ultimatums, if they say yes, awesome. If they say no, decide if this is a place you want to stay. If not, get some irons in the fire.
posted by Ruthless Bunny at 8:25 AM on September 19, 2013
Just ask for what you want. Get a meeting with the highest ranking person there who can make the decision and ask for what you want. The less you say, the better. They know who you are and what you're doing, you don't have to tap dance for them.
"Since Pete has moved on, I'll be taking on more of the Ops role, I think it's a good time for me to become a full-time, salaried employee, with an appropriate bump in pay. I'm thinking that the ballpark of $55k (ask for more than you'd be happy with so you have room for negotiating) is about what others with my tenure and responsiblities are getting."
All that other stuff is static. So you work fewer hours? So you just got more money a few months ago? So the benefits are increasing in price? Not worth discussing and not relevant to your discussion.
Now, don't give any ultimatums, if they say yes, awesome. If they say no, decide if this is a place you want to stay. If not, get some irons in the fire.
posted by Ruthless Bunny at 8:25 AM on September 19, 2013
Put yourself in the shoes of someone making the case with their boss to give you a raise.
Things that their boss would care about:
Median wage for the position (i.e. your flight risk, and the company's ability to cope without you)
Your responsibility level (if it's increased, pay typically needs to increase shortly after)
The quality and output of your work (is it good? Is this person an asset to the company? Is it worth making an investment in them)
Are you capable of more (i.e. if we pay you more could you handle more tasks seniority? [your health may be somewhat of a sticking point here]).
Things their boss won't care about:
Your rent
Your insurance
Other stuff about your personal life.
That stuff is totally immaterial to them. And bringing it up - especially the health stuff and out of the office stuff - is going to hurt you far, far more than help you (indeed, you may be asked to be in the office more if you get a raise).
So concentrate on why it makes sense to the company to give you a raise. How will it make them more money, basically.
If they say no, find out why. Don't accept bullshit about overheads etc, find out why they won't give you a raise, and try to a) gauge how strong their resistance is, and b) demonstrate how you can mollify those concerns.
If I were you, I would probably start shopping for another job - coming to someone with an offer for another job that pays more but you "really don't want to take" is in my experience quite effective in getting the most honest counter-offer you can. If you do this, and they come back with shit, they obviously don't value you for whatever reason. Those reasons may be particular to the company, or they may be particular to you, and it's good to find out which pretty early in your working career.
Best of luck. I reckon if you do get a raise, they're going to try to put you on a salary.
posted by smoke at 4:17 PM on September 19, 2013
Things that their boss would care about:
Median wage for the position (i.e. your flight risk, and the company's ability to cope without you)
Your responsibility level (if it's increased, pay typically needs to increase shortly after)
The quality and output of your work (is it good? Is this person an asset to the company? Is it worth making an investment in them)
Are you capable of more (i.e. if we pay you more could you handle more tasks seniority? [your health may be somewhat of a sticking point here]).
Things their boss won't care about:
Your rent
Your insurance
Other stuff about your personal life.
That stuff is totally immaterial to them. And bringing it up - especially the health stuff and out of the office stuff - is going to hurt you far, far more than help you (indeed, you may be asked to be in the office more if you get a raise).
So concentrate on why it makes sense to the company to give you a raise. How will it make them more money, basically.
If they say no, find out why. Don't accept bullshit about overheads etc, find out why they won't give you a raise, and try to a) gauge how strong their resistance is, and b) demonstrate how you can mollify those concerns.
If I were you, I would probably start shopping for another job - coming to someone with an offer for another job that pays more but you "really don't want to take" is in my experience quite effective in getting the most honest counter-offer you can. If you do this, and they come back with shit, they obviously don't value you for whatever reason. Those reasons may be particular to the company, or they may be particular to you, and it's good to find out which pretty early in your working career.
Best of luck. I reckon if you do get a raise, they're going to try to put you on a salary.
posted by smoke at 4:17 PM on September 19, 2013
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posted by valeries at 8:06 AM on September 19, 2013