On asking for a raise

Similarly to most of the topics I discuss, asking for a raise has been widely covered by gazillions of experts on the web or in the press. So 1st step to take before asking for a raise is... to Google the steps to prepare asking for a raise.

However I will add my two cents to this huge pile of pennies by sharing the good advice I received in the past as well as my preparation strategies. What follows recaps all the steps I take before asking for a raise. I've been roughly using this method for 7 years now and for 8 or 9 negotiations (I'm loosing count), and with good success.

Disclaimer 1: this article is obviously tailored towards people working in sales and marketing. I imagine the dynamics of asking for a raise when working in other sectors (public, creative, IT...) may be different. Hope this helps anyway.

Disclaimer 2: I've been working for French companies ever since I started out therefore all management related conversations, salary negotiations and the likes were in French. The vocabulary I will be using here might not be the most finely tuned, so focus on concepts not form. Thanks.


Psychological barriers
Before we discuss preparation, I want to share a piece of advice that was in my case of invaluable help when i started out. Most of us create mental barriers that make asking for a raise a real ordeal. In my case I was apprehensive of asking a raise for a reason I couldn't quite put my finger on. It was a mixed feeling of fear of being scorned for daring to ask a raise (you should have seen my first CEOs and VPs :p), being told a big fat NO!, getting my work thoroughly criticized, pissing my boss off and what not...
Well this psychological barrier came crashing down with this one simple piece of advice from a great manager of mine.

What he told me was this: "You have nothing to loose by asking for a raise. You are taking zero risk. Managers, VPs, CEOs... they deal with this all the time and they will NOT loose respect or consideration for you if you "dare" to ask for a raise. In fact, some may even loose respect for you if you do NOT ask for a raise. So loose all the stress and go ask for what you want.",

In my case, this discussion injected rational facts in my irrational barrier. Try to find your barrier and calmly assess why it is not rational. Break it down and get over it.


Preparation and methodology

1/ Steer clear from emotional waters. Raw facts, data and accomplishments only.
First off, always stick with facts and figures. Stay away from the emotional realm. If you have a good working relationship with your manager, some sort of privileged bond or anything similar (are you working for your family's company?), do not try to exploit it and play off it. Do not tread in emotional waters.

Do not invoke pity ("pitttyyyy pleeeaaase my rent just went up"), sympathy ("I would really appreciate it if...") or invoke what you think is right ("you KNOW I deserve this!").

Focus exclusively on raw facts and accomplishments. This means that when the time comes your brain won't go into overdrive with any emotional stimuli you may conjure up. You will be cool headed and discussing pure facts.


2/ Past, present and future
How do you prepare for the discussions? Easy: you focus on EVERY valuable thing you've done in the past, everything valuable you are doing now and everything valuable you will or could be doing in the future.

Brainstorm. Take three pieces of paper: write down EVERYTHING you've done in the past... up to the smallest meaningful task you can think of. Organize everything in categories: business development, marketing, reporting, department organization... Then categorize them by order of importance taking in account the VALUE your work has brought to the organization.

Do the same for the present, focusing on expected results your projects will yield.

And for the future... First focus on short term: "taking in account this year's growth it's not unrealistic to imagine next year's growth will be of X%..." or "Taking in account the increase of staff it's not unrealistic to imagine I will be organizing X additional events next year..."

Secondly, and this is where it gets subtle, talking about the future is the opportunity for you to send out signals to your management regarding the longer term career evolutions you may be thinking of and to position yourself. "Not only will this year's growth be of X%, but I believe I now have the experience necessary to build a team to tackle such and such new project"... So write down the subtle messages you want to convey as well.

Past, present and future and the value you bring to the company: these are the keys.


3/ Industry averages
Your negotiations need to be grounded and reasonable. You need to go in there knowing where you stand, what you can reasonable ask for and what you can expect. To know exactly where you stand, research industry salary averages.
Google it. Find several sources. Make sure you factor in all bonuses, material benefits, maybe even cost of living etc... You need to be prepared to counter any arguments such as "Yeah but that data is for people working in Paris, we live in a small country town so you need to cut these averages by 25%..." or "Yeah but you have a company car when usually [insert job title here]s don't have one... that's at least worth 15% of your salary..." etc...


4/ Aim high, always
So once you have determined all the great things you've done for the company in the past and present, what you will do in the future and where you stand compared to industry averages, it's time to think of a number... Of how much a raise you want.

Well here's the part that takes a bit of balls and a poker face. Aim high, always. I admit I did not use to believe in demanding relatively outrageous figures (please note the "RELATIVELY")... because I used to think that I lived in a rational and reasonable world (type B anyone?) and that my boss would not start haggling if I asked for a reasonable figure. Well... word to the wise: BOSSES HAGGLE. It's in their blood. It's how they got there. It's why they're bosses.

So aim HIGH. You want your boss to be taken slightly aback by the figure you're asking... and you want to back it up with all the great things you've done and you could do.

Do NOT bring up the industry averages and wage study unless your boss starts haggling and being unreasonable. The core focus should be what you bring to the company and the figure you believe is reasonable (remember: poker face!). Bringing up the average wages might at first derail the conversation to the figures and sources, while you should be talking about YOUR salary.


5/ Preparing the negotiation
You need to be prepared for the hard hitting counter arguments that your boss is going to throw at you. Trust me, bosses have so much more experience than us in the matter, they will destabilize you if they want to. They've heard all the basic arguments and requests, and they know what they're going to counter you with before you even start.

So, take a piece of paper and write down... everything you do NOT WANT TO HEAR your boss say. Stuff like:

- Sorry, salary discussions for all employees will only be taking place in 5 months. What makes you think you're different?
- Sorry, we don't have the budget.
- Are you serious? Have you seen sales levels this year? No way.
- No. And if you're not happy you can leave at any time.
- Your salary is within industry averages. End of discussion.
- Your salary is above industry averages. Are you kidding?
- Look, I am very satisfied with your work... but let's talk again in 6 months.
- I can't pay you more then your colleagues, that would be unfair to the rest of the team.
- I could pay someone else just as competent as you for less. So no.

After you're sure you listed EVERYTHING you do not want to hear, start working on the counter arguments.

Now all this process takes a little empathy, so work on projecting yourself in the boss' seat. Also, this little exercise can always be taken one step further. You can also work on countering your boss' counter argument...But don't go overboard. 1st and second level should be enough.


6/ Strategy - when and how to ask

When to ask?
That's a tough one... In a structured company, there's often yearly reviews and a specific timetable for salary discussions.
Well in my opinion... F that... Anticipate... be the first in line... be the first to fire the shot (before your colleagues...)... However I've never worked in super structured humongous organizations... So in that case I can't really give out advice.

If your company's HR isn't structured... then it's a free for all. You need to know how to assess when management might be opened to the suggestion and most of all use the momentum you will have created after closing a big deal or finalizing the organization of some big project. Basically, you need GREAT news to go in (good won't cut it).

It's called being in a position of strength :D.

How to ask?
If you have a good working relationship with management: start informal with your direct supervisor. Ask him. If he's ok with you moving ahead with the plan (and you secured his support), go formal: send an e-mail TO THE DECISION MAKER (CC your direct supervisor) stating how after X time in the company you now wish to seize this opportunity to debrief regarding your activity and your participation to the corporate mission (blablabla etc etc)... IN ORDER TO DISCUSS A RAISE.
Don't sugar coat it, be direct, just lay it out there. That way everyone is on the same page. However I would not discuss actual amounts and figures in the email.

The basic layout of the email should be a condensed version of your past, present and future spiel. Add all the necessary politeness and respect formulas, but go straight to the point. Again, have it reviewed by your direct supervisor before it's sent out.

What will potentially happen is that your manager and the decision maker will have a meeting on the topic. If so, try to be there and have a briefing with your manager before going in.
If you are not conveyed to the meeting, have the briefing anyway and give out your fully detailed past present and future spiel to your manager.

If you do not have a good relationship with your management, going formal immediately is the only way. Email your direct supervisor asking for the necessary meetings and face time with the decision makers. The content of the email should be the same.


7/ Prepare your exit strategy
Ok so by now you're ready to ask and your ready to negotiate. However one crucial point that is nearly always overlooked by many articles found on the web is your EXIT STRATEGY. If you want to have a lasting impact, or if you want to be in the right position to go back to your boss to continue the negotiation at a later date, you need to prepare your exit.
You also need to be ready for a refusal.

Let's try to imagine the possible outcomes AFTER your negotiation is closed. Let's imagine there's no more room for discussion and the outcomes are final:

A/ Acceptance by your boss. He gives you exactly what you want (whether its the slightly high figure you asked for or the real figure you were aiming for).
B/ Your boss accepts you deserve a raise, but the raise is lower than your expectations.
C/ Your boss postpones the discussions or the raises to a later date.
D/ Your boss refuses any raise whatsoever.
E/ Your boss refuses a raise and shoots you down ("if you're not happy, you can go elsewhere!").

These 5 scenarios require 5 very different attitudes. I would recommend the following:

A/ Ok, 1st off... STAY COOL. You need to remain layed back, relaxed and professional. No tears of joy :D. However it's important to convey your satisfaction. Basically just tell your boss you are very satisfied with what you just agreed on and you are happy that he agreed to hear you out on this. Plus, he won't be disappointed etc etc...

B/ My philosophy is "everything won no longer needs to be won". As above, remain laid back and pro, but you need to convey a slight form of disappointment. You could finish with something along the lines of "thank you for having heard me out on the topic, and I appreciate the gesture even though as you know it did not meet my expectations and I hope we will have the opportunity to re-discuss a possible raise in 6 months time. Nonetheless, I'm happy you value my work and you will not be disappointed..."

C/ In this case, and after having exhausted all options (bonuses, material benefits...), you need to get a firm commitment from your boss regarding the date or time period when you can discuss the topic again. The sooner the better obviously.

D/ In this case, you can be in two positions:

- a position of weakness: you do not have any other job prospects, you are attached to the company, job, city, current salary etc... and you are not considering leaving. In this case, the most important is to take it like a gentleman, while still pointing out your disappointment and trying to get a commitment for a new discussion in the future. Example: "Well obviously I am disappointed but I hope we can agree to meet again in the future to re-discuss this topic?"

- a relative position of strength: you are ready to leave, you are aware of opportunities, you have already gone to a few interviews etc...
Ok so in this situation, you should have a harder stance and be relatively clear. Basically your message should be: "I have to admit I am disappointed (emphasize the disappointment). You know I am doing great work, and I do not understand this decision".
In this situation, when you are exchanging very harsh words with your boss, you need to make sure your behavior stays balanced, cool and pro. What you are basically stating are FACTS. Expressing your disappointment is NOT an attack. You are just basically telling straight to your boss' face that you are not happy, and well... he's the boss... the ball is in his court and he needs to know that everything is up to him now.

Go back to your office, go back home... and start preparing to leave.

E/ If you are in a position of weakness, I guess the advice here is similarly to situation D, except you need to make sure you show your boss that him shooting you down doesn't affect you 'cause you have a thick hide. Basically remain relatively cool and pro... and say what you have to say without ever reacting to his harsh attacks unless you have hard facts to counter them. NEVER EVER react to him telling you you can always go elsewhere if you want to. He's baiting you and/or testing you here, or he really means it. In any case, do not react. Stick with raw facts.

If you are in a position of strength, the advice is still the same as D/. The reason being is unless you have a firm commitment from another company (which is a very specific scenario I will not cover in this post, as I have never been in such a situation), you never ever want to expose your hand and expose yourself to risk. So act just like you were not in a position of strength and try to secure a future negotiation date.
However if the situation really gets out of hand... as it happened to me once before... well in that case, and only if your back is up against the wall... time to pull out the big guns I guess... "Ok, I hear what you're saying and I'm sorry and disappointed to hear it. Taking in account this talk I think it's clear I will not in this company be able to reach the salary level I know I'm worth, and that's a shame taking in account everything else about the job and the company suits me."


8/ Final thoughts
After spending all the necessary time on your preparation, playing out the discussions over and over in your head and getting pumped before going in... you absolutely need to keep the following 3 points in mind:

- first, the discussion will NOT go as you expect it to. No matter how much planning you put into this, it will NOT go as planned. Remember the reason you plan is to make sure you have the necessary ammo to liven up the discussion, not to try and anticipate the discussion word by word. The discussion will NOT go as planned.

- secondly, at the end of the day... the decision to give you a raise or not is your BOSS' decision and no one else's, and there's nothing you can do about it. Unless you are a business star straight out of a Hollywood movie (by that I mean a fictional character), you will not instantly change your boss' mind from "no raise" to "oh wait I didn't know this guy was a star performer, he needs a 300% raise!"... Even super skilled negotiators can end up in front of a wall.

The contrary also applies: if your boss believes you deserve a raise, you will probably get it without getting the opportunity to lay out all your planned arguments.

- and finally a salary negotiation is NOT a ONE SHOT. It's a process, just like climbing a mountain. You NEED TO SET MILESTONES (one of my most important concepts in business life... I'll blog about this at a later date). Even if your boss gives you a big fat NO!, you just set a milestone, and you can get back in his face after an appropriate lapse of time.
If you are facing a wall, start climbing, digging or finding an alternate route.


Some other unorganized thoughts to finish this post that ended up being way longer than I initially thought :D

- Start by focusing on a raise. If that gets you know where, start shifting your focus to bonuses and/or material benefits. Remember, "everything won no longer needs to be won".

- Do not worry if you are in a position of strength (ready to leave) or weakness (not ready to leave). As we've seen earlier, it shouldn't affect the preparation nor the actual discussion. You're behavior should always be the same. Also remember to make sure you cannot be "read".

- Never, ever, ever bluff. Saying stuff like "if I don't get this raise I'm leaving!" then not leaving when your boss laughs in your face will totally and utterly destroy your credibility. Forget raises for several years...

- A position of strength is something you BUILD: good results, good self marketing, good job searching etc... However never show off your position of strength. Make sure your boss subtly understands it... but don't overplay it. An employee is always replaceable and bosses have egos. They don't like to be put against a wall.

- IMO never ever use a colleague's salary as a comparison point or negotiation tactic. You will get shot down so bad it may close the discussion.

- And finally, for all the young guns out there with an over-sized entitlement complex... note the following: HARD WORK COMES BEFORE A RAISE. It's NOT the other way around. Never ever put yourself in a blackmailing situation where you are basically not doing your best until you get that raise you think you deserve. In that case, IMO you should be either FIRED by your management or actively looking for a job that suits you better.