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When There’s Little Meat in the Merit, Go for the Gravy
Yes
It’s your annual review and the boss is positively gushing about your performance. You begin to relax and start salivating over what must be an obscene merit increase, when her tone shifts from proud parent to bitter civil servant.
“I’m recommending a pitiful merit increase,” she announces, explaining that the well’s gone dry, stockholders are suspicious, and sacrifice is the new company creed.
“Oh, and confidentially, you’re better positioned than most,” she concludes, employing the same “kids are starving in Ethiopia” rationale your mom used when shoveling waxed beans into your mouth.
Instead of swallowing hard, be prepared to argue your case. If the company truly is going through tough times, consider asking for additional perks in lieu of more salary. Otherwise, press on. Most employees take more care readying for a dental appointment than their performance review.
One should prepare for a performance appraisal much as one prepares for a job interview; ascertain your market value, craft a dazzling and relevant brag sheet, and know the company and its relative financial performance.
Research salaries in your field.
Before deciding how big a raise to request, you need to find out what other people earn for performing similar functions. In order to replace you, your boss is going to have to pay more or less the going rate, so you can use this as a benchmark. Of course, you cannot simply calculate the average salary of people in your profession, and then ask for this amount. You must consider many other factors, so merely think of this sum as a starting point.
Where should you conduct your research? Start with a trip to the library or clicking through the Internet. The Bureau of Labor Statistics publishes a website that offers a number of research tools that focus specifically on salaries. The Bureau also publishes the Occupational Outlook Handbook, available in most libraries.
Another good resource is the trade association that serves your field. Engineers, for instance, can consult the Society of Professional Engineers (SAE), and drill down even further in their areas of specialty, such as automotive and industrial.
If you find your salary is below the mean, don't immediately go marching into your boss's office full of righteous indignation. By the same token, don't rule out a raise just because you're already beating the industry average. You still need to consider other factors.
What have you done for them lately?
“I’m underpaid” isn’t a freestanding argument for a raise. Rather, it begs a weighty question, “Why?”
If you want a raise, you need to prove you're worth the extra money. That means you must take a long, hard and honest look at what you do for the company. And remember, working overtime isn't enough; you need to actually accomplish something during those extra hours. Ask yourself, “How am I adding value to the company?”
Timing is everything.
Let's say you're receiving a below-average salary for an above-average performance. You deserve to get a raise, right?
Sure, you deserve it, but unfortunately, there's a third thing to consider—your employer's financial health. If your company is publicly traded, consult the most recent quarterly earning statements. The fiscal strength of privately owned firms will be more difficult to gauge, but not impossible. Begin with your area or department, asking yourself if new sales are high, steady, otherwise. If times are good, so is your timing.
When money is tight, consider the perks.
If your boss likes the job you're doing but is unwilling to raise your base salary, consider other kinds of benefits options, including flex time; increased vacation; telecommuting; and tuition reimbursement.
Develop a wish list, beginning with earning your fair market value. Then consider what’s most important for your personal and professional growth and relative happiness. If you’re considering starting a family soon, flex time may be worth more to you than a higher merit. For those whose careers have taken an abrupt halt, advanced educational opportunities may prove a good tradeoff. Be creative. It never hurts to ask, providing you have a good case.
Even if your employer leaves you empty-handed, don’t become too discouraged. You’ve planted a seed, and it may bear fruit at a later date.
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