5 Signs It's Time to Talk to Your Boss About a Pay Raise

There's a difference between wanting a pay raise and deserving one.

No doubt you’ve got a whole host of reasons why a few extra dollars in your bank account would be helpful. Unfortunately, struggling to pay your rent, a baby on the way, or simply working hard day in, day out are not reasons that justify a salary increase.  

Employees who want a raise are often reluctant to initiate salary discussions with their boss because they feel undeserving of one or fear being perceived as such. If you’ve been trying to muster the courage to negotiate your salary, there are five signs to look for that will provide reassurance that a raise is truly deserved. 

1. You’ve Benchmarked Yourself

The number one, surefire way to determine whether you’re owed a salary increase is if someone is being paid more than you for doing the same job. There are a few ways to investigate this. 

Firstly, speak to people within your company doing similar jobs to find out how they are being compensated, taking into account their experience, level of seniority. and time spent at the company. Salary discussions with colleagues can be uncomfortable, but people may be willing to share the information when requested. In fact: being transparent about salaries helps close the gender pay gap. 

Secondly, make use of online salary calculators, including Salary.com, Glassdoor, and Indeed, to benchmark similar roles in your industry. Salaries will vary by region and company, and websites like these fail to take in the nuances of similar, but not identical, roles, but they’re still a helpful starting point. Keep in mind that if you haven’t received a raise in a long time, it’s likely your salary has fallen below the market value.

Thirdly, speak to recruiters about other job opportunities. While it isn’t always advisable to share compensation details with recruiters, they can certainly give you an indication of what other employers would be willing to pay you for similar roles. 

2. You’ve Added Value to the Company

As we mentioned earlier, working hard isn’t enough in and of itself to merit a raise. Delivering on your job description is the very least your employer expects of you; that’s what your current salary compensates you to do. However, if you’re consistently going above and beyond, taking on additional tasks without being asked, and making innovative contributions to the organization, it’s probably time your achievements were recognized. 

When the work you deliver directly impacts the company’s revenue, be it through sales or savings, you’ve got an even stronger case. Any quantifiable achievements demonstrate the value you’ve added and strengthen your case for a raise. 

3. You’ve Taken on New Responsibilities Since Your Last Raise

What’s changed since you first took this job or last received a raise? Dig out your job description and compare it to what you’re doing today. If your current responsibilities bear little resemblance to what’s written in your contract, it’s probably because your role has evolved and expanded. This means you’re entitled to a raise. 

You should also consider recent changes within your department. If several people have left the company recently, particularly if they held more senior positions than you, chances are you’ve picked up some of their workloads. This means your employer is saving a lot of money on salaries, a proportion of which should be finding its way to your paycheck. 

4. Your Skillset Is in Demand 

According to the Bureau of Labor Statistics, the U.S. currently has more than seven million unfilled jobs. Demand for particular skills changes all the time, especially with the rapid pace of technological development. When you accepted your role, your talents might have been less valuable than they are today. If there’s a known talent gap in your industry, or you’re confident that your skillset is one in a million, you’re much more valuable to your employer and should be compensated accordingly. According to LinkedIn, the three most in-demand tech skills of 2019 were cloud computing, artificial intelligence, and analytical reasoning. 

5. Your Performance and Pay Haven't Been Reviewed in a Long Time

If your company doesn’t have clear structures in place to review performance and salary, it’s easy for employees to remain unrecognized for their good work. If it’s been longer than 6–12 months since your last performance review you might have missed a golden opportunity for a raise. This is particularly true if you know other colleagues have recently received salary increases.

Leading organizations including Deloitte, The Gap, and Adobe have ditched traditional performance reviews in favor of continuous feedback loops, a practice favored by 90% of their employees. This approach means employees always know exactly where they stand and achievements are continually recognized. While a system like this might not be feasible in every company, alarm bells should be ringing if there is no system in place to recognize and reward contributions. 

In conclusion, the key question to ask yourself is not why you need a raise but why you deserve one. If you can confidently and truthfully answer this question, you’ll have a very good chance of walking away from your next salary negotiation with a brighter financial future.    

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