Whether you’re in your first job out of school or a seasoned professional, the reality of why you work probably comes down to ONE key thing… Money.

And while money isn’t always (and shouldn’t be) the number one motivator in our lives, it sure as hell is a big one.

As such, both the newbie and c-suite exec. alike are looking to nab that big promotion and secure their next raise.

In fact, just “looking” may be an understatement.

With 2023 inflation rates hovering at 5% and US average raises remaining at 3%, if you aren’t consistently securing pay bumps or promotions, you are actually losing money year after year.

You don’t want that for you and I don’t want that for you.

So what does it take to beat inflation and secure consistent raises?

Like many things, it takes planning and execution.

The typical employee, however, will jump straight to execution and simply ask for a raise.

Doing this may pay off in the short term with a quick pay bump however, you put yourself at a disadvantage for future negotiations and opportunities.

If you want to get promoted, beat inflation, and secure a raise consistently, DO NOT ask for one until you’ve completed these 5 tasks:

1. Audit your motivation

2. Take time to articulate your value

3. Do your market research

4. Pick a number… strategically

5. Create a contingency plan for “no”

Audit your motivation

We all have different motivations for working and, as such, will probably have different motivations for wanting a raise.

Ranging from the personal such as,

“Cost of living in my city is insane and my rent just doubled.”

to the more pragmatic,

“We let go XYZ team and as such, I am now working effectively two jobs and deserve compensation.”

Simply wanting more money is not enough motivation to ask for a raise.

Dig a bit deeper to find your core motivation for the ask.

This will strengthen your argument 5x and put you in the driver’s seat.

It’s easy for employers to say no to a number, it’s more difficult for them to turn down a motivated (and prepared) human.

Take time to articulate your value

Ok, so you now have identified your deeper motivation for wanting a raise. Now you have to put in the effort to articulate WHY you deserve it.

Open up a Word doc or kick it old school with pen and paper and title your page, “Why I deserve a raise….”

Then simply make a list of all the reasons why you believe you deserve a raise.

For some guidance, here are a few bad reasons,

“I need to fund my Bahamas trip this winter.”

“I can make more money somewhere else.”* We will get to this later but at this point in the process you don’t want to threaten with leaving… yet.

“My friend has the same job at XYZ company and makes X% more.”

While the last two examples have some merit, all the above are focused on you and or others.

Through this exercise, you want to articulate the value you bring to the company.

To do so, use cause and effect statements and quantify as much as you can.

Here are a few good examples…

“When we acquired XYZ company, I took on 3 more direct reports and have been logging 15 hours of additional work per week. I should be compensated as such.”

“With the green light from leadership, I worked on my own time to develop a podcast that has grown over the past year to 10,000 listeners and 500 qualified leads generating over $1mm in new business.”

“The new reporting dashboard I created and maintain has become essential to the senior leadership team and results in 10+ hours saved in executive time per month.”

See the difference in perspective?

Never go into a negotiation without preparation.

Frame your prep from the POV of the value you bring.

Do your market research

Here’s a popular opinion:

With new legislation supporting it and online tools such as Glassdoor and ZipRecruiter, it has never been easier for employees to gain insight into compensation transparency.

Candidly, if you are unsure of how your current compensation stacks up in the market and/or with your other colleagues you might as well just ask.

In fact, that’s what all the young kids are doing.

Here’s a less popular opinion:

If you are going to ask for a raise, the best way to gain compensation insight into your role/industry is to start taking other interviews.

Funny enough, if you work at Netflix they actually encourage you to look elsewhere.

I am a big proponent of this for three reasons:

1/ It keeps your interview skills sharp and your resume fresh.

2/ You will begin to see what other opportunities are out there (a big head start if you end up pursuing other opportunities).

3/ Doing so will immediately inform you of how your compensation stacks up.

If you don’t do your research, you cannot move on to the next, and arguably most crucial, step.

Pick a number… strategically

Do not, ever (please, seriously promise me), just ask for a raise.

Your ask should contain the following components:

1. Plant the seed with an email/phone call. Keep it simple

“Hi Jim,

I was hoping to grab 15 minutes on your calendar this week to discuss my compensation. Given the work I’ve been doing and the success it has brought the firm I’d like to revisit this.

Looking forward to it,

Ben “

2. Secure the in-person meeting and send over your Value Articulation doc in advance

“Jim,

Looking forward to meeting tomorrow. In preparation, I’ve attached a document with some of my largest accomplishments to date and the results we’ve achieved from them. I’m hoping we can use this to guide the conversation.

Ben”

3. In the actual meeting walk through the document you shared and ask for a number

“Given the accomplishments and results we just discussed, I believe I am deserving of a X% raise.”

Asking for a raise is a multistep process that must end with a firm and concrete ask.

*Choosing that number and negotiating are topics for another week

Create a contingency plan for “no”

You’ve asked for the raise. Congrats, just asking (the right way) takes strategy and guts.

Now, a few things can happen (listed below from most ideal to least ideal):

• You get an immediate “yes” (RARE)

• You get an agreement that you deserve a raise and a negotiation meeting will be scheduled/next steps will be fleshed out

• You get an agreement that you deserve a raise but are told the company simply can’t support it

• You get told a straight-up “No.”

When receiving any of the above answers as a response, it is critical to create a contingency plan for every and any outcome.

If you are successful, I strongly recommend that you find a separate time to jump into negotiations.

If not, you must hold your own and be prepared to counter.

You deserve to be compensated fairly for your work and if you aren’t you should be prepared to:

• Revisit the topic in a few months,

• Work less,

• Demand more help, or

• Find a new job

If you ask for a raise, be prepared for every outcome.

All told, if you are doing good work and going above and beyond you deserve a raise. Prepare for one, make the ask, and get paid.

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