How to Successfully Ask for a Raise in 2024

As we step into 2024, many individuals find themselves in a favorable position to request a raise or seek higher-paying opportunities elsewhere. With inflation tapering off, interest rates declining, and unemployment remaining below 4% for two consecutive years, the economic landscape appears promising. Although some economists predict a slight increase in unemployment in the coming year, it is expected to stay relatively low.

Despite these advantages, asking your employer for a raise can still be a daunting task. To ease your nerves and increase your chances of success, it’s essential to prepare thoroughly and support your request with solid evidence. Here are some key steps to help you navigate this process effectively.

Start the Discussion Early

Timing is crucial when it comes to asking for a raise. It’s important to initiate the conversation well before your performance review. Ideally, bring up the topic several months in advance. This gives you the opportunity to explain to your supervisor that you’re hoping for a raise and inquire about the necessary steps to achieve it. By doing so, you can follow through on their expectations and make it easier for your manager to keep their word during the performance review.

Additionally, consider your company’s budget cycle. Aligning your request with the company’s financial planning can be beneficial. Even if your supervisor supports your request, their hands may be tied if raises are typically given out during a specific time of the year, such as the beginning of a new fiscal year. Starting the discussion after successfully completing an important project can also work in your favor, as it highlights your contributions.

Record Your Accomplishments

While some employers offer annual cost-of-living raises, you may need to make a compelling case for an additional raise based on your individual accomplishments. Instead of presenting a long list of everything you’ve done, focus on a few key projects or occasions where you went above and beyond. Keeping notes and screenshots throughout the year can help you document your achievements effectively. These could include:

• Praise from managers, coworkers, or clients
• Details about your contributions and how you achieved them
• The impact of your work on your team and the company

If your manager needs to seek approval from higher-ups, providing them with a clear context of your contributions and results can strengthen your case.

Gather Outside Statistics

Researching what others with similar roles and responsibilities are earning can also bolster your argument. If you find that you’re underpaid, you can request an increase to match market standards. Even if you’re not underpaid, you can use your research and accomplishments to justify why you deserve more than the average salary.

Here are some resources to help you gather relevant data:

• Salary websites: Platforms like Glassdoor, Indeed, LinkedIn, PayScale, and Salary.com provide anonymized salary information.
• Job listings: Some cities and states have pay transparency laws requiring employers to include salary ranges in job postings. Use these as benchmarks, adjusting for location-based pay differences if necessary.
• Competing offers: Applying for other jobs and using the offers you receive can provide subjective estimates of your earning potential.
• Recruiters: Reach out to recruiters to inquire about the expected salary for someone with your experience.

Be Specific About What You Want

When requesting a pay increase, be specific and use your research to support your request. For instance, if you consistently exceed expectations but have a below-market salary, you can argue that you deserve a certain percentage above the market rate to align with your performance.

If a pay increase isn’t feasible, consider alternative benefits that would make you happy, such as:

• More paid time off
• Flexible hours
• Remote work days
• Equity compensation
• New bonus opportunities
• Financial wellness benefits
• More interesting assignments

Instead of asking for a raise, you might find it easier to persuade the company to invest in your career advancement. For example, having them pay for a career coach or continued education could help you qualify for a higher pay bracket or a higher-paying job in the future.

Have a Backup Plan

Despite your best efforts, you might still receive a “no” in response to your request. Rejection can be discouraging, but it’s important to assess the situation and consider your options:

• Ask follow-up questions: Determine if the decision is final or part of an ongoing negotiation. Inquire about potential career and salary growth within the company and what needs to happen for you to progress.
• Earn a certification: If there isn’t a clear path to progress in your current role, ask if earning certifications could warrant more pay or help you move into a higher-paying career path within the company.
• Learn new skills: Acquiring new skills, even without certification, can be beneficial. Many free online courses are available in in-demand fields like cybersecurity and AI.
• Update your resume: If you’re ready to leave your current job, update your resume and explore opportunities at other companies. You might negotiate better pay and potentially a sign-on bonus. If you’re not confident in your writing abilities, consider hiring a professional resume writer or using artificial intelligence tools to get started.
• Try a side hustle: If you want to stay with your current employer but need additional income, look into flexible side hustles to supplement your earnings.

Additionally, consider the impact of leaving your job on employer-provided benefits, such as health insurance and retirement accounts. Assess how these changes will affect your finances and whether you can afford to leave immediately or need to secure another job first.

How a Raise Could Impact Your Credit

If your efforts pay off and you receive a raise, it’s important to understand how it could impact your credit. While your income doesn’t directly affect your credit score or appear on your credit report, it can influence your creditworthiness in several ways.

A higher income can make it easier to pay your bills and lower your debt-to-income ratio, which creditors may consider when making lending decisions. You can also update your income with your credit card issuers, potentially leading to a higher credit limit. A higher limit can lower your credit utilization ratio, which could, in turn, improve your credit scores.

To track how these changes impact your credit, consider signing up for free credit monitoring services. These services provide monthly updates of your credit report and score, along with real-time alerts for important changes to your credit.

At O1ne Mortgage, we understand the importance of financial stability and growth. If you’re looking to make the most of your raise or need assistance with any mortgage services, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you navigate your financial journey and achieve your goals.