In life, you sometimes need to make sacrifices to get what you need or want. Maybe you are running low on cash to make your payments or fund a vacation, etc, so you decide to ask for a raise. Approaching your boss to ask for a raise can be pretty intimidating but worth it if you have the right tactics. Make sure that if you do go ahead and try to get a raise that you are ready for “no”. Keeping your head up high after a “no” will always earn you respect. Here are five steps you can take to better your chances at getting a raise.
- Ask for it. If you haven’t had a raise in awhile and you are an asset to a company, they will most likely get you that raise. You need to be able to demonstrate your value to your boss and prove to him that you do indeed deserve a raise. Your value could be innovative ideas, leadership, cost cutting tactics, etc.
- Come up with a new project. Showing your boss that you are not only taking the initiative to get new ideas rolling along with leadership roles could warrant you a raise. You could make the case that you will be putting in more work hours with this new project that is going to benefit the company in some way.
- Make sure your timing is right. Asking for a raise when you know the company is hurting for money will unlikely get you a raise. The best time to ask for a raise is during your performance reviews after your boss has recognized that you have, indeed a strong performance for your company. Maybe you did complete that project that helped the company and your boss is praising you for a job well done. Now that is a perfect time to ask for a raise after your boss has your performance and accomplishments fresh in his mind.
- Pay-raise alternatives. Maybe your company just doesn’t have the money in the budget right now to be handing out raises so you could shoot for some alternatives such as vacation time, better hours, bigger year-end bonus, etc. If your boss denies you for these alternatives and you do have a good track record with the company, you may want to ask your boss what the best way to position yourself for a future raise. That way they know your intentions and could point you towards a more probable outcome.
- Research current rate for your position. There are a number of sites you can go on to research what the average, high and low payment of your position is to see how you being compensated for your work. One such site is glassdoor.com, this site is what I use mostly and it is very reliable. If you go to this site and you find that you are being paid under the average for your position, you may want to set up a meeting with your boss to make your case that you are being underpaid. Just make sure you are careful at how you word yourself.
It can be hard to ask for a raise but if you have the right tactics you will have a better shot. It would be best if you had good negotiation skills along with self-confidence. It is not a comfortable situation when you go to ask your boss for more money but it is part of the game and the only way to make it in your job and life is to play the game.
When you go to ask for a raise from your boss, it is just as important to know what to say as what not to say. If you say something that is not ideal when asking for a raise you will not get it and you could have dug yourself a hole for getting a raise in the future. If you go into the meeting with a chip on your shoulder you will most likely not be seeing an extra penny for awhile so do yourself a favor and avoid these common pitfalls when asking for a raise.
- “I need the money”. Here is the harsh reality of what your boss thinks about your finances: they do not care in the slightest. If it doesn’t affect the company then who cares. That is the kind of mentality your bosses have so don’t go around saying how you need money because you can not afford this or that.
- Threatening to quit your job. Many high ranking people believe they are the lifeblood of their company but what they don’t realize is that they are easily replaceable. Every single position is easily replaceable. There will always be someone that can do your job if not as good as you or better. Giving your boss an ultimatum will not only cost you the potential for a raise but sometimes your job as well.
- Using another job offer as leverage. If you looking for a raise but have alternative job offers that you are not interested in or bluffing to use as leverage, do not bring that up in the meeting. This is another ultimatum like scenario that will only backfire in your face. Then not only will you have no raise but now you have to go work at a place you are not interested in or unemployment.
- Showing sense of entitlement. No one likes someone who tries to act bigger than they are really. If you go into the meeting acting like the company owes you something you are going to be fresh out of luck when getting a raise. Your boss will not appreciate or be willing to discuss raises with you if you go in there acting like you are a higher rank than your boss.
- Whining and complaining. Complainers are the worst. If you go in to a meeting complaining that you are underpaid and throw a fit like a second grader, the response will be similar. Your boss could dismiss you right there because in the world of business complaining gets you no where but backwards. Stop and think before you try to pull this card.
Asking for a raise is a tricky situation but avoiding these common pitfalls could really help you divert disaster. Don’t act like you own the place because you don’t and you will be put in your place faster than you can believe. Save yourself the trouble and use more common sense before you walk into your boss’s office throwing down demands because you feel entitled to more cash.
Sources:
Forbes.com
Payscale.com
When you go to the news stand you can find a wide variety of financial newspapers and it can be hard to determine which one is the right one for you. Some offer more commentary while others offer more trade ideas. However, the ideal newspaper has a healthy balance of both commentary and trade ideas. The ideal newspaper need both aspects because you need to stay informed on big news in the market, as well as explain why they chose the trades they did. As for the trade aspect, it is always nice to see where the paper believes there are going to be significant moves in the market. However, these trade ideas should be the starting point for your research not just a free for all jump.
I will be reviewing the following financial newspapers for the criteria as described above: Wall Street Journal, Investors’ Business Daily (IBD) and Barron’s.
Wall Street Journal: This newspaper is the standard of the industry. The WSJ is a great newspaper that really keeps you informed with the current news and trends around the market in almost every industry. However, it lacks in trade ideas and opinionated pieces, in my opinion. That is not to say that it is a bad newspaper by any means, I often read the WSJ because their reporting is very good and informative. WSJ is perfect for investors who want just news.
IBD: IBD was founded by investing great William O’Neil back in the 1990s. For those of you who do not know what O’Neil is famous for, he is known for his CAN SLIM trading system which involves technical analysis. With that being said, this newspaper is almost all trades. They have a top 100 stock list that they update weekly based on technical break outs. I would not recommend this to any beginning investors because this system is a bit complex. On top of the lack of commentary, the newspaper is quite expensive for a subscription. If you want mostly trades then IBD is the paper for you.
Barron’s: Barron’s newspaper is very knowledgeable on many aspects of the market. They have sections just for commentary on European stocks, Asian stocks, bonds, options, US markets, etc. Within the commentary they tell you the current conditions as well as where it may be heading. Then they provide you with a trade idea. On top of that they have market sentiment indicators and Put/Call ratios of the market. These tools are designed to help show you where the market could be heading in the short term. Barron’s does a great job on the commentary and trade front. They continue tom provide news as well as opinionated pieces, making Barron’s a great newspaper.
As you could see above, there are some newspapers that may be better for some trades while the same newspaper may not work for others. If you are looking for a well rounded paper, my suggestion would be to go for Barron’s. They have the best overall deal when it comes to being balanced with commentary and trades. Let it be noted that it is always important to do your own research on recommended stocks before you jump in to make sure they work with your investing goals. Main thing to take away is successful investors stay informed with the market.