1. List some steps of dealing with a refusal of pay raise?
☛ Do not take it personally.
☛ Ask your boss what you can do differently.
☛ Send a follow-up email saying thank you.
☛ Be persistent.
☛ Consider looking elsewhere if the situation does not change.
2. What is the right time to ask for a pay raise?
Successful requests are all about good timing. Ask yourself what you have done within a demonstrable time period that has made you more valuable to the firm or organization. It does not make sense to ask for a pay raise when you have not yet demonstrated anything amazing for the firm regardless of long you have been there.
☛ The time is right when your value to the organization is clearly high.
☛ This means seizing the iron while it is hot and asking for a pay raise off the back of excellent successes such as holding a highly successful conference, getting fantastic feedback, getting a big client signed on, producing outstanding work that outsiders have praised, etc.
☛ Do not choose a time when the company has just posted major losses.
☛ Asking for a pay rise based purely on "time done" is dangerous because it makes you appear like a timekeeper rather than someone interested in the company's progression. Never say to your boss: "I have been here for a year and I deserve a pay raise.
3. How would you review your work history for the pay raise?
Pay particular attention to projects you have worked on, problems you have helped solve and how business operations and profits have improved since you started. This is about more than just doing your job well, which you are already expected to do but about going above and beyond the duties of your job and ultimately, it boils down to improving the company's bottom line. Some questions to consider when developing your case include:
☛ Did you complete or help to complete a tough project? And get positive results from it?
☛ Did you work extra hours or meet an urgent deadline? Are you continuing to demonstrate this type of commitment?
☛ Did you take initiative? In what ways?
☛ Did you go beyond the call of duty? In what ways?
☛ Did you save the company time or money?
☛ Did you improve any systems or processes?
☛ Did you empower others with your support and guidance or training?
4. List some tactics to help manage the situation of turning down pay raise request?
Some tactics to help manage this situation:
☛ Accept that in tough economic times, the needs of the company must come first. Sharing this line of thinking with an employee let them know where you are coming from and gives them insight into your decision-making process.
☛ You generally have little to no warning or control over when the employee will request a meeting to discuss a raise. Once asked, do not stall or delay this conversation. Handle it head on.
☛ Be compassionate, caring and understanding but it is important to note that there is no need to apologize. It is just a fact of life that when a company's business is down or facing risks, its employees will have to forgo raises.
☛ Let the individual make his or her pitch without interruptions or argument.
If correct, accept his or her assertions and numbers openly. Respond to every request, regardless of which pitch is used, with the same answer: the money is not there right now.
☛ Accept that there will be a certain amount of anger, annoyance or disappointment. It is understandable.
☛ Make a commitment to revisit this issue and assure the employee that there will be an increase as soon as it is feasible.
5. Why would you use data wisely for a pay raise?
As a manager, I hate it when an employee points to someone else and calls out one aspect of that other person's compensation and then claims the right to parity. Sure that gal got more stock but maybe she takes less cash compensation. Maybe she is actually worth more because even though she has the same title as you at her firm that title means a much higher-level job. Maybe she has experience, education or skills that commands a premium. My point is this, data is a slippery slope you have to use it wisely. Do not use incomplete or bad data to make your case.
6. Why should you practice good timing for pay raise?
Timing is also key. There are natural times to discuss compensation, such as when you are first negotiating joining the firm. If you feel you have strong data to support that you are under compensated, letting your manager know the data before the end of year budgeting process is a good idea. You should also take the long view, if you are not properly compensated today, talk with your manager about what expectations you should have about your future outlook for compensation changes, and what you would have to do in terms of increased responsibilities or other actions to be more in line for growth in your compensation. Planning for career growth goes hand in hand. The easiest way to get a bigger paycheck is to earn a bigger job.
7. How would you seek a counter offer for pay raise?
The most delicate negotiation occurs when you have been quietly looking elsewhere and you now have an offer that is higher than what you are currently being paid. There is no better market validation than an offer. If you are using that solely as a stalking horse to get a raise and if I were your boss…well, I would sure have liked you to come to me first to tell me you were unhappy you are your compensation and let me have a try at fixing it. On this tactic, all I can say is every firm is different and every person is different. For some, this is the only way to get your compensation raised. For others, it can taint the relationship forever. Use this with caution.
8. Why should you not ask for a pay raise because of financial hardship?
Here is one thing never to do when asking for more money. Never ask for it nor justify it because of your need. If you work for a for-profit entity, as many of us do, your need is completely irrelevant. While I can personally be hugely empathetic to your financial needs and hardships, I can not justify increasing your compensation because of them that is unfair to the company and to any coworker who puts in the same effort but walks away with less.
9. How would you answer the question about the pay raise?
The secret here is to ensure the employee knows they are a valued worker, making a legitimate request that simply can not be met right now due to the company's financial status. A rational person will understand these kinds of circumstances. Acknowledge his disappointment by ensuring that you will come back to him with a raise as soon as the financial picture brightens.
You should never have to settle for less than you deserve. If you are shooting higher than your company is willing to pay, maybe it is better to apply for a different position that has a higher salary either with your company or another one. Think this possibility through carefully, there is no need to burn bridges just because your conversation with your boss did not go well.
☛ It is better to stick with it for a little while longer to try to work for that raise. But if months have passed and you have not gotten the recognition you deserve in spite of your hard work, then do not feel bad about seeing what other companies have to offer.
