What is Considered a Reasonable Pay Raise
A reasonable pay raise varies on the basis of experience, contributions, and education. This article will help you calculate your reasonable pay raise!
This is the 21st century and in this century if you aren’t living according to your rights, you need to change your ways. After applying to the various jobs, when you are appointed to a job, the pay you receive should be just. Things get over the border when additional work is offered at the same pay. Or you perform above par and are still getting the same salary as before. You may have plenty of reasons to ask for a raise but the question arises: what is considered a reasonable pay raise?
Did you get the scenario? Let us have a look into the topic and help you understand the importance of pay raise.
Reasonable Pay Raise
According to WorldatWork’s survey data, the percentage average pay rise is rising by 0.1 percent each year since 2018. In 2020, U.S. salary budgets were projected to rise by an average of 3.3 percent. So a 3 to 4% increase in salary is where you should consider a reasonable pay raise must be. If you believe the pay raise range is not what you expected and you should be deserving more, then keep in mind that as you progress in your career, you are bound to have a higher salary. So requesting for a raise or not, it has to happen one day. Also keep in mind the fact that when companies see they want to make their employees happy or acknowledge their efforts, it is not always via giving employees a pay raise. That acknowledgment can also come in the form of increased benefits and generous bonuses.
Reasons for a Pay Raise
This can be a critical question if you are going to ask your boss about pay raise or write an email to him. You need to define the reasons that must support your request for the raise.
Here are all the possible reasons that work around the pay raise scenario:
- Worked beyond expectations
- Proved Valuable to the Company
- Promotes Positive Work Attitude and Ethics
- Produces Quality Work that positively impacts the company
- Distinctive Skills
These are the points you should strengthen your pay raise application with. Compensation cannot be provided if needs are highlighted more in the application. The company does not care if your rent went up or you require extra cash for some other reason. Your application must show that the reasons are based on your performance and values.
The following points are also considered by the company when it plans to acknowledge employee’s efforts by compensating them with a pay raise. So if you are among those expecting a pay raise you should analyze if you fall among the bullet points mentioned above.
Suitable Times to Ask for a Pay Raise
If you are among those who think that you can ask for a pay raise whenever you want, then you must read this section more carefully. Ask yourself. Can you ask for a pay raise two months after you join in? Or Can you ask for a pay raise when half of the employees are being fired off due to lockdowns when the company can’t meet the requirements? You surely must be getting an idea about the right time to ask for a pay raise.
Timing your pay raise can create a significant impact and increase the chances of getting your application accepted. The timings can matter depending upon your company’s work style, values, and impact rate.
Here are some situations when you can ask for a pay raise:
Approach the company before the company approaches you
The best way to do this is to ask your manager, senior, or your hiring manager about the time when the company reviews salary and compensations. When you get the information about the time frame, prepare for an application before the review frame starts. Here’s an example: If your company gives out pay raises in the middle of the year then approach your boss in March or April. This will allow you to compel them to consider your request rather than requesting a change in the decision when the revision is already done.
The approach during good times
As stated above, you don’t want to mess with your boss when the company is not performing well. However, we are not saying that you can’t approach a pay raise when the company is doing good. You are more likely to get your application for pay raise accepted when your company is showering in profits. It is simpler than it seems because when the company experiences profit, it can easily give out money without disturbing the reserves.
Approach after successfully handing a project
We told you that you must have a strong reason for pay raise. This will be the right time because the reason will be freshly documented in the company’s recent events. When you complete a project that was meant to positively impact the company and the project working shows that you contributed effectively to it, then it becomes a great time to ask for a pay raise. This is because your manager will know that you are a key asset and that you must be awarded for what you performed recently.
Approach during annual performance reviews
During annual performance reviews, you and your manager meet to discuss what your valuable contributions were to the company. This gives you the right opportunity to ask for the pay raise since it will align with your annual performance – if you did prove valuable to the company. If you think you deserve this, then you can talk about salary as well during this time.
Approach after a good time has passed
Here we are talking about fresh graduates appointed for the first time in a company? Youngsters these days are known for shifting jobs. If they enjoy their time at the company with patience and passion, then asking for a pay raise won’t be a problem. Provided that they approach after six months and have a handful of contributions towards the company with them.
Approach when the manager is jovial
This is a no-no until the timings are critically correct. There is no standard practice for this. Just go to his office and ask for a pay raise; if he is in a cheerful mood you are one lucky person then. In the opposite situation, don’t dare to give even a hint about it.
Asking for a Raise
If you are reading this section, then hopefully you would have read the above sections as well. You know very well understand the factors that determine a person’s credibility for pay raise and the best time to approach your boss with the request. Now you are ready to ask for a pay raise. NO, you don’t have to barge in your boss’ office and say “Boss, I need a 10% salary increment”. Things move gradually in the corporate world.
Schedule a meeting with your boss. This shows how considerate you are of his time. Select a day he is free and request a meeting on that day. Once the request is approved, start researching elements that support your pay raise application. You very well know why you want the pay raise, what accomplishments support your request, and what is the average pay raise percentage in your profession. Prepare a presentation that you must be delivering to your boss because verbal requests look informal and unprofessional. IT has to be organized and serves as an effective sales pitch.
You can workaround the following points when asking for a pay rise.
Tips for Asking for a Raise
1. Strengthen with skills and accomplishments: Throughout your time at the company, hone your skills and utilize them in the projects assigned to you. Those projects will speak for you if they positively impacted your department and company as a whole. Just verbiage of accomplishment won't work, add statistics and numbers to that accomplishment to strengthen your credibility.
2. Be realistic about salary: Salary depends upon your industry, profession, company, and location. Proper research may help you provide an effective pitch. Some companies don’t pay well while others pay huge amounts. You have to be careful that you don’t demand too little or too much from the company. It's very important to set realistic expectations.
3. Be Professional And Ethical: You don’t want your boss to know that you want a pay raise just because a co-worker received one. Nor shall you threaten to leave the company when pitching your application. This shows an unprofessional attitude which leaves a bad impact on your profile. Also, it is unethical to ask for pay raise just because you can't pay your salary or go on a vacation.
4. What’s in it for the company: Strengthen your argument by not only asking for a pay raise because of your accomplishments but also assuring the boss that you have effective plans for the company. Add in your presentation what your goals are, how will you achieve them and how will the company benefit from them.
5. Be Confident: Last but not the least, confidence wins games. IF you are confident with your application and presentation you won't only get a pay raise but will be appreciated for your efforts as well.
Let's start with making a perfect resume to get a perfect job that will ultimately lead to getting a reasonable pay raise.