Chapter 11: When, Why, and How to Ask for a Raise

Overview

In 1988, when I had been working for the same Fortune 500 company for about 8 years, I learned that my male counterpart was earning $10,000 more than I was. The fact that this colleague and I were friends made the situation more difficult for me. I was familiar with his background, education, and experience, and we were alike in many ways. There was certainly a gender difference, but my results were better, and I was ready to make more money.

So, I did a little research by calling contacts with competitors for salary information. Then I waited for the right time, made an appointment with my boss, wore my best “power suit,” marched into my boss’s office, and said: “I have been in my director role for 2 years, with outstanding results. [I showed him a breakdown of my results for the last year, a number of letters of appreciation from our company’s largest clients, and a goal list for the coming year.]

“I have a question and a request. First, the question: Can you help me understand why Bob earns $10,000 more than I do? My tenure is longer by 6 years, and we are similar in background and experience. My results are rated as outstanding, my performance evaluations are consistently outstanding, and my salary is less. If there are critical issues keeping me at this below-grade level, I’d like to know what they are so that I can work to improve. If the salary difference is a quirk of process, I’d like to reach parity, so let me know.

“Now the request: I think my results and the cost savings to the company warrant a salary increase of 10 percent. My research shows that within our company and within our industry, the salary range is $75,000 to $95,000, and a 10 percent increase in salary, once parity has been reached, will put me there.”

My boss, a man of few words, said, “Impressive. Let me do some checking and I’ll get back to you.” Later that day, back to me he came, with a retroactive pay increase covering the $10,000 shortage plus a 12 percent salary increase.

Asking for a salary increase is difficult, whether there is an inconsistency in the application of the salary plan or you simply believe that you have earned a raise. This process worked for me in 1988, and a similar, but upgraded, process continues to work for my clients now.

When you have been with your company long enough to have demonstrated that you have made an impact, prepare to ask for a raise. Before you ask, though, you will have to know why and how to ask, and for how much. Here are the basics to remember.