May 21, 2021
By the end of March, job openings across the country hit a record high unseen since December 2000.
In the Bureau of Labor Statistics’ most recent release, the government reported 8.1 million job openings that month.
Advertisement
Whether you need the pay bump to help pay down debt or you just want to advance your career, don't settle for less.
And if you’ve been plugging away productively through the pandemic, you may be able to leverage the current worker shortage to your advantage by negotiating a pay raise.
Follow these seven simple steps to walk into a meeting with your boss confident and come out with the salary boost you deserve.
1. Look put together
Whether you’re working in e-commerce or warehousing, retail or the restaurant industry, there’s an increasing need for workers, according to stats on job postings from ZipRecuiter.
UberEats made the top of ZipRecruiter's list with over 300,000 jobs posted on the site last month. E-commerce behemoth Amazon was near the top with over 250,000 jobs posted in April.
If you already have a job, this could be the perfect time to show your boss just how valuable you are to the company.
An overwhelming majority of managers (80%) say what you wear has an impact on whether or not you’ll get a raise, according to a survey for recruitment company Robert Half.
Advertisement
Make sure you look like a professional who respects the workplace and deserves to be paid more. This could be an excuse to do some clothes shopping, but it's for a very good cause.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
2. Don't focus on how long you’ve worked there
Starting the negotiation by boasting about your seniority can be counterproductive, so focus on your accomplishments instead.
Do you have a diverse set of transferable skills? How much does the company stand to lose if they had to replace you?
Did you go back to school to refine your skillset? That may account for why you need a raise, too. If your student loans are eating up too much of your monthly budget, you may want to consider refinancing your loan to free up a few hundred dollars in your monthly budget.
3. Point out real accomplishments
When talking to your boss, show your value to the company by drawing on concrete examples.
These can be situations like any great newcomers you helped recruit, the times you've taken the lead on projects or work initiatives or times where you helped save the company money.
Demonstrating your long-term commitment (and results) will help tip the scales in your favor.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
4. Do some research on average salaries and benefits
You may feel you’re not being paid what you’re worth, but you need to make certain the market agrees with you.
Advertisement
Resources such as Glassdoor, LinkedIn and the Bureau of Labor Statistics can provide valuable information on average salaries for your position, and you can use that data to back up your request for a pay raise.
Don’t be shy to ask around about what your peers receive in perks like health or life insurance or 401(k)s either.
5. Ask for a performance review
A performance review is a chance for you and your boss to sit down and assess your accomplishments, and for you to demonstrate how you’ve exceeded expectations.
Make sure your boss knows you want to talk about the value you add to the company.
Walking in prepared for your performance review with those concrete examples of how you’ve helped the company succeed will show your boss you’re serious about your request.
6. Practice your pitch
Even if you have the data on your side and can demonstrate a long list of accomplishments, asking for a raise can be an intimidating experience. That’s why you’ll want to practice your sales pitch ahead of time.
You can even ask a trusted friend or family member to help you rehearse.
Advertisement
Have your friend play your boss and give you push-back when you start making your request. Brainstorm any objections the boss might have and prepare your answers. All this will make your pitch even stronger.
7. Keep it professional
Whatever you do, avoid getting personal while talking to your boss. While some supervisors will have no objection to you asking for a raise, others may see the request as an affront.
Remain cordial and composed, and avoid getting defensive.
And, if for some reason, your boss says “no,” simply politely ask "Why?" and really listen to the answer.
Finally, when the interview is over, thank your supervisor for their time. If the response was negative, don't fret. Make a polite exit and avoid burning a professional bridge.
What to do if it doesn’t go your way
If your supervisor gives you some constructive advice, then you’ll know what you need to do before you can ask for a raise again.
And if you’re truly unsatisfied with their reasoning, you can always explore your options to find a new workplace where you feel valued and will be paid the salary you deserve.
Or you can try being your own boss by freelancing using any new or existing skills.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Sigrid is a senior associate editor on the Moneywise team, where she has also worked as a reporter and staff writer.
Mortgages • Feb 17
First-time home buyer programs
Mortgages • Feb 15
