Pay Raise Interview Preparation Guide

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A pay is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of view of running a business, pay can also be viewed as the cost of acquiring and retaining human resources for running operations and is then termed personnel expense or pay expense. In accounting, pays are recorded in payroll accounts.
Pay is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Pay is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual pay.

Pay is typically determined by comparing market pay rates for people performing similar work in similar industries in the same region. As I told you about the pay before, pay raise is just that it is the increase or increment in your wages, salary or pay.

If you feel like you have been doing an excellent job at work, do not be afraid to approach your employer for a raise. Many people are afraid to ask for raises even though they know they deserve them, making excuses like, the economy is so down right now or I will never find a good time. If this sounds like you, then it is time to stop getting in your own way and to start making a game plan for getting the higher salary you deserve.

Here are a few tips to ask for a pay raise:
☛ Gathering information
☛ Building a case
☛ Asking for a raise
☛ Dealing with a refusal

Getting a pay raise in most industries is hard to achieve unless you have some leverage. Leverage can consist of such things as getting another job offer performing above and beyond your job description consistently, effectively, and regularly.
☛ If you are a star employee, a good company will often be able to find a bit extra to keep you satisfied. Be aware that it is a fairly standard tactic to tell you that the business is already over its annual budget, to try and deter you from asking. This means that you need to know your worth as assessed against objective criteria (see below) and be persistent.
☛ If you have already negotiated a pay deal with your boss, it may be harder to ask for more. Your boss assumes you are happy with the amount you're getting and isn't not likely to be favorably disposed to adding more financial burden to the company without good reason.
☛ Be careful about using another job offer as leverage. Your boss may call you on it, it is important to really have such a job offer and be willing to take it if you are rebuffed by your boss. Be ready to walk that plank.

☛ Make sure you have leverage.
☛ Have realistic expectations.
☛ Know your company's policies
☛ Know what you're worth - objectively.
☛ Gather some market data for similar positions.
☛ Keep abreast of the trends in your industry.

Read the employee handbook (and company intranet, if you have one) or better yet, talk to someone in human resources. Here are a few things you should figure out:
☛ Does your company require annual performance reviews to determine your salary?
☛ Do salaries advance according to a fixed schedule or rank?
Who can make the decision (or ask for it to be made)?

It is easy to believe you are worth more, especially if you feel as if you are giving 110 percent every day but you need to demonstrate this objectively by assessing your worth against that of others in the same industry. Many employers say they do not give a raise until the employee does 20% more work than he did when he was initially hired. Here are few things you can take into account when you consider your worth:
☛ Your job description
☛ Your responsibilities, including any management or leadership tasks
☛ Years of experience and seniority in the company's line of work
☛ Your level of education
☛ Your location

Subscribe to and read at least one trade journal regularly and make it a point to discuss the future with your colleagues.
☛ You should also keep your eyes on the horizon and regularly envision the path ahead for your company and for the industry. Make it a point to consciously set aside time at the end of each month to critically examine the path ahead.
☛ The very act of anticipating needed actions will serve you well in day-to-day operations and in salary re-negotiaon.
☛ You will be leading the way into the future and enhancing the company's ability to capitalize on the changing market.

☛ Prepare a list of your accomplishments.
☛ Review your work history.
☛ Consider your future value to the company.
☛ Decide what level of pay raise you're looking for.
☛ Do not be afraid to ask.
☛ Choose the right time.

It is best to use accurate performance measures such as quality improvement, customer satisfaction, and especially, growth in profits. The list will remind you of your own worth, make it concrete, and provide an objective basis for your demands.
☛ While some people believe it is helpful to write down accomplishments to present to your boss, others believe your accomplishments should already be evident and you should only need to highlight those to remind your boss of what he already knows and reinforce that knowledge. It depends on what you know about your boss's preferences, your relationship dynamics with your boss and your own level of comfort with reciting your accomplishments verbatim.
☛ If you choose to convince your boss verbally, memorize the list.
☛ If you choose to present a written copy to your boss for his or her reference, have somebody proofread it for you first.

If your company is already over budget and suffering as a result of the recession, cut-backs or any other reasons, you might be better off waiting until later. During a recessionary period, some companies will not be able to provide pay raises without also endangering your job. However, this does not mean that you should use this as an excuse to delay asking for a raise indefinitely.

It is important not to appear greedy but rather to remain realistic and reasonable.
☛ If you feel comfortable with your position, tie the salary increase to the increased revenue or profit that is tied to your past successes and expectations for the near future. If you anticipate being able to bring home a lucrative project or contract in the next few months, that may well fund your pay raise. The implication that the next ten months of your year are all bottom-line profit does not have to be stated explicitly, but, if the case is made convincingly, the conclusion is inescapable. If your boss sees an easy way to justify the salary increase to superiors, you are in a strong position, indeed.
☛ The usual tactic of negotiating from a much higher point is not as good an idea with salary increase requests because your boss might think you are trying to milk the company and push the boundaries.
☛ You can break the numbers down so they seem less imposing. For example, you can explain it as being an extra $40 a check rather than $2,200 for the year.
☛ You can also negotiate for more than just a pay raise. Maybe you are happy to take other things in lieu of money, such as shares in the company, a wardrobe allowance, rental assistance or even a more prestigious title. Ask for a company car or for a better one. If appropriate, talk about increased benefits, more conspicuous job titles, and modifications to your responsibilities, management oversight or assignments.

Though it can be hard to get a pay raise, it is worse to fall into the mindset of not asking for a pay rise, ever.
☛ In particular, women are often afraid to ask for a pay raise due to a mindset that does not want to appear demanding or pushy. See this as an opportunity to show that you care enough to develop a career trajectory that favors your workplace as well as yourself.
☛ Negotiation is a learned skill. If you are afraid of this aspect, take some time out to learn it and practice implementing it in a variety of contexts before approaching your boss.

While this may be something you took into account when you first negotiated your salary, your role and responsibilities probably have changed. Look at similar levels in the industry to see what others are being paid for similar work. Determine the usual salary range for those who do what you do in your region or area. Getting market data for comparable positions can empower you by helping you be and feel more knowledgeable when you talk with your boss.
☛ While these things will be helpful when you build your case, they should not be used as the principal argument for getting a pay raise, they simply inform you about your potential worth, not your boss.

This indicates to your boss that you see the larger picture and are positioned to help the company identify and capitalize on opportunities as they arise. You will always be one step ahead of the others in thinking about where the company is headed.
☛ Be sure to identify specific long-term goals and objectives that will benefit the company in the future.
☛ Keeping an existing employee happy is also less of a hassle than conducting interviews and hiring a new one. While you do not want to say this outright, emphasizing a positive role in your company's evolution which helps assure the company's future success will definitely resonate with your boss.

Be confident, not arrogant and stay positive. Speak politely and clearly to better maintain your composure. And finally, keep in mind that it probably will not be half as bad to ask as it did to work up the nerve. When you talk to your boss, lean in a bit if you are sitting down. This will help project confidence.
☛ Start by saying how much you enjoy your job. Being personable will help make that human connection with your boss.
☛ Follow up by discussing your achievements. This will show your boss why a pay raise matters to you.

Set time aside. If you just walk up and ask for a raise, you will seem unprepared and come across like you do not deserve one. You do not have to give too much advance notice but do seek privacy and a time you know you will not be interrupted. For example, when you walk in to work in the morning, say: "Before you leave, I would like to speak with you."
☛ Remember, a face-to-face request is far harder to turn down than a letter or email.
☛ Try to avoid Monday, when there will be a million things to do or Friday, when your boss may already have other things on his mind.

Do not just say, "I want a raise." Tell your boss how much more money you want to make in percentage terms, such as wanting to make 10% more money. You can also talk in terms of how much you would like your yearly salary to increase. Whatever you say, be as specific as possible, so your boss sees that you have really thought it through. Here are the things that can happen:
☛ If it is an outright "no," see the next section.
☛ If it is "I need time to think about this," try to pinpoint a future time for reopening the discussion.
☛ If your boss agrees immediately, say something like, "Don't say yes unless you mean it" as a means of reinforcing it in his or her mind and then proceed to "hold your boss" to it.

This is important regardless of the answer you have been given. You can even go over and above by giving your boss more than they are expecting from you, such as a thank-you card or lunch invitation to say thanks. Consider sending a follow up email as well even if you have said thank you person multiple times.

If the answer was yes, the final hurdle may be actually receiving the raise. Back-pedaling or even simple forgetfulness are always possibilities. Do not jump to conclusions if the raise does not go into effect right away. Things do go wrong: your boss might encounter resistance from the higher-ups or face budgetary problems, etc.
☛ Making your boss feel bad about reneging (for example, mentioning someone you know who asked for a pay raise only to have a boss take it back and how staff morale plummeted). This will have to be done subtly and with tact.
☛ Ask when your boss will implement the pay raise. A subtle way of doing this might be to ask if there is anything you need to sign to put it into effect.
☛ Go one step further and tell your boss: "I guess that you will have this arranged by the end of the month after you have approved the paperwork," etc. This puts a plan into action so that he or she does not have to.

☛ Make an appointment to talk to your boss.
☛ Present yourself well.
☛ Ask for the raise in specific terms and then wait for your boss's response.
☛ Thank your boss for his or her time.
☛ Hold your boss to the promise.

If you allow the rejection to sour your attitude or affect your work, your boss will probably feel like he made the right decision. If you develop a reputation for having a bad attitude or for not accepting feedback, then your boss will be even less likely to give you a raise. Once your boss gives his final verdict, be as gracious as possible. Don't walk out of the room and slam the door.

This demonstrates your willingness to take your boss's opinions into account. It may be that both of you can agree on increased responsibilities and activities over a certain time period that gradually leads to a new role and a pay increase. This will also demonstrate your commitment to your job and your ability to work hard. Your boss will see you as a go-getter and you will be on his radar the next time raise season rolls around.
☛ If you are a star employee, keep performing excellently and ask again in a few months time.

This provides a dated, written record that you can remind your boss of in future negotiations. It will also remind your boss that you are grateful for the conversation that you had and shows him that you have follow-through.