When asking for a raise, it鈥檚 tempting to acknowledge the elephant in the room 鈥� the surging cost of living brought on by inflation and interest rate hikes that have hammered household budgets.
But that鈥檚 not what employers want to hear when discussing pay, said Alan Kearns, founder and managing partner of CareerJoy, a national HR services firm.
Employers might be expecting requests for raises due to all those issues, he added, 鈥渂ut it鈥檚 also not the employer鈥檚 responsibility.鈥�
鈥淭here is a responsibility to pay fairly, but it鈥檚 not their responsibility to maintain a relationship with the economy based on costs.鈥�
After all, companies of all sizes may be facing the same headwinds, said Stacy Yanchuk Oleksy, CEO of Money Mentors, an Alberta-based non-profit credit counselling agency.
鈥淒epending on the type of business, there are costs everywhere else that could be going up as well,鈥� she said. 鈥淎nd that鈥檚 when you want that person who 鈥� before they speak to their boss 鈥� goes in with an informed perspective. You know, if my business is declining, and we are having troubles covering off expenses, this is not the time to ask for a raise.鈥�
But if the timing for the company is reasonable, asking for a pay bump is a legitimate career move. The key to the approach, Kearns said, is turning the meeting into a discussion about your performance.
鈥淭he two sides of any employment relationship is a business contract, right?鈥� he said.
鈥淵ou provide services, they pay you for the services 鈥� so the fundamental question you have to ask is: 'Am I providing value for service currently?' You can鈥檛 just go in saying, 鈥楤ecause the cost of bananas has gone up, you need to pay me more.鈥欌��
This is a time to brag. Bring a list of some recent wins that have either brought in more money, saved money, or streamlined a process, Kearns said. Explain the value you brought to big projects or clients. Use the meeting as a 鈥済rowth opportunity鈥� for your role in the company and your career in general.
鈥淵ou have an opportunity to sit down and talk about performance and what you鈥檝e done and bring it to light,鈥� Kearns said.
This conversation about your contributions is smarter and more strategic, he said.
Ideally, he added, you should be in the top 20th percentile of performers in the company if you鈥檙e expecting a good outcome for this request.
And don鈥檛 mention other staff members鈥� pay, or recent raises if they鈥檝e received them. While bosses should expect their employees to talk about money, Kearns said it鈥檚 not a topic for this meeting.
Good employers should already give annual pay raises of around two or three per cent to keep up with inflation, Yanchuk Oleksy said.
Larger organizations in particular will likely have a certain time of year when budgets are determined so it鈥檚 smart to request a raise close to this time.
If you鈥檙e requesting a significant increase, say 10 per cent, you have to make a business case for it, she added.
鈥淗ave you proven your worth? Are you adding that 10 extra per cent of value to the organization?鈥� Yanchuk Oleksy said. 鈥淲hen I鈥檓 asking for something, I don鈥檛 want to go in looking desperate, I also don鈥檛 want to go in looking entitled, either. I want to go in as a professional.鈥�
To sweeten the deal, asking for a major raise can include offers to take on more responsibility or work, she added 鈥� effectively a promotion.
Financial reasons might keep an employer from granting a pay increase, but worthy workers might see other perks added to their compensation package, Yanchuk Oleksy said 鈥� time off or other benefits.
In general, if it鈥檚 done right, there are few risks associated with asking for more money. Worst case scenario, the boss says no 鈥� and now you might have to decide if it鈥檚 worth leaving for something better, she said.
If you are a high performer who just made a solid case for advancement, Kearns pointed out, you鈥檙e well suited to test the market anyway.
But whether you stay or go, the exercise itself has been a valuable one. At the very least it鈥檚 been an upgrade in your negotiating experience, Yanchuk Oleksy said.
鈥淚 think, you know, having a good conversation with a boss just builds skills, right?鈥� she said.
鈥淭hat鈥檚 a great skill to have. And it鈥檚 worth talking about yourself. I think it鈥檚 always worth bringing that forward. Just act as a professional, if you鈥檙e going to do it.鈥�
This report by The Canadian Press was first published Feb. 20, 2024.
Nina Dragicevic, The Canadian Press
