Who wouldn’t like to earn more money, right? But how can you do it? Employers tend to be rather stingy, so securing a salary increase requires effort, preparation, and strategy. In this article, I will explore proven techniques to help you maximize your earnings.

Ask for a Salary Raise Like a Pro

Many people dread asking for a raise. Hearing “no” can be tough, and the possibility of learning that your employer doesn’t recognize your worth can make people shy away from asking altogether. Some fear that asking for a raise might make them seem greedy, stigmatize them, or even put their job at risk. Additionally, many people simply feel unsure about how to initiate the conversation, what information to present, or the best way to negotiate.

Here’s how to make it easy:

1. Prepare the history of your salary development since you joined the company. Benchmark your salary against similar positions in your field and location. This will help you determine a fair raise amount. You can use several sources:
   • Popular forums like Glassdoor or Indeed
   • Professional remuneration surveys from companies like Robert Walters or Payscale
   • People in your network who work in a similar role in a similar company
   • Advertisements for similar positions in the same industry/region that include salary ranges
2. Prepare a list of your accomplishments and contributions to the company since your last raise (or since your initial hiring, if you haven’t received a raise yet). Include certificates and awards you have earned, and any form of recognition from your colleagues, stakeholders and customers.
3. Consider mentioning any personal circumstances that justify your increased cost of living (new childcare expenses due to a recent birth or change in care arrangements, a significant change in gas prices, tolls, or public transportation costs, etc.). By strategically linking your personal circumstances to your value as an employee, you can strengthen your case for a raise.
4. Check your company’s policy on increases and promotions, and learn about any potential limitations. Anticipate your manager’s questions and objections and rehearse your responses. If your request exceeds your company’s policy limits, you may still succeed and receive an exceptional raise, but it will be more challenging, and you must be prepared to be more persistent.
5. Timing is crucial. Before you initiate the discussion with your supervisor, wait for a suitable moment. Ideally, this should be when the business is doing well, you’ve recently achieved a significant milestone, and your supervisor is in a positive mood. Avoid asking during a busy period or right before/after vacations.
6. During the discussion, maintain good posture, make eye contact, and project a professional demeanor. Find the right balance between humility and assertiveness: Be clear about the raise you’re asking for and why you believe you deserve it using the data you prepared without being pushy or arrogant. 
7. Be prepared to negotiate. If a straight raise isn’t possible, be ready to discuss alternatives such as a raise phased in over time, one-time payments, additional bonuses, stock options, or other forms of compensation.

Use Your Annual Review

Most established companies follow an annual salary review cycle where they assess their salaries based on external benchmarks and other factors such as business performance and inflation, and allocate a specific budget to be distributed among employees. If your company is one of them, it may be easier to wait for it because your manager will likely be prepared to discuss your performance and compensation during the regular review rather than ad hoc.

When the time comes, prepare the same way as above to maximize the yield from your annual salary review. However, keep your expectations in check. Typical annual raises usually don’t exceed 5%, and a raise exceeding 10% is quite exceptional. If your current salary is well within the company’s established range for your role, you might receive a minimal increase or nothing at all.

Earn a Promotion

If you are not happy with your salary progression in your current job, you can strive to advance within your current organization. A promotion typically means an upgrade to a higher job grade and an increased chance of a salary raise.

However, your growth within your company may be limited, depending on the size and structure of your organization. Some companies foster internal mobility whilst others impose restrictions, such as only allowing promotions every few years, setting tough performance benchmarks, requiring certain degrees or certifications, or limiting promotions due to financial restrictions.

Explore Opportunities Elsewhere

It’s a well-known fact that employees can significantly increase their compensation by changing employers relatively frequently, every 2-3 years, rather than staying with one company for a long time. Employees increase their market value as they gain skills and experience while working. However, employers rarely match this by adjusting their salaries accordingly. This gap between your salary and your current market value makes you an attractive candidate for other companies.

If you believe you are ready to move to the next level but there are no opportunities in your current company, start applying for positions elsewhere. This approach can potentially result in a 20-30% or even 50% salary increase.

However, after some time, you may feel that you have exhausted your opportunities and become stuck in a low-paying career.

Read more here: Navigating Career Change: How to Make the Switch (and Earn More Money)

Brush Up Your Skills First

Whether you want to get promoted, look for a better-paying job elsewhere, or just ask for a raise in your current job, it is a very good idea to upgrade your skills, gain additional knowledge, and amass more experience first if you want to maximize your salary increase potential. To accomplish this, seek learning opportunities in your current job. Let your boss know you’re eager to learn and take on new challenges, volunteer for internal projects, and don’t miss any training programs offered.

On top of learning on your current job, consider utilizing numerous online platforms like Coursera, edX, and Udemy, as well as technical books, online tutorials, and documentation provided by software companies. Take the initiative to build personal projects that showcase your newly acquired skills. Consider contributing to open-source projects or creating something that solves a specific problem in your area of expertise. You can even volunteer or freelance in your free time to gain more experience with the newly learned technologies and skills. (First, check your company policy and applicable laws to see if there are any limitations.)

Read more here: Skills You Need to Learn to Earn High Income and Achieve Great Career Success

Threaten with Resignation

Recently, I heard a story about an employee who had been requesting a salary raise for a long time, but his boss consistently ignored him. One day, he showed up in his best suit, shirt, and tie, then asked for the afternoon off to attend to a personal matter. The very next day, he received the raise.

But as you may guess, directly threatening your boss is never a good idea, as it can backfire. However, if you are happy in your current job and company but feel undervalued and only want to get what you deserve, there is a way to cleverly leverage your resignation to gain a salary increase while staying in your current position. If you want to learn how, check my article here: How to Leverage Resignation to Gain Salary Increase

Conclusion

Most companies fail to recognize the true value of their high performers. What they often overlook is that replacing such employees comes at a significant cost — and in many cases, the replacement ends up earning an even higher salary for the same role. If you find yourself in this position, apply some of the techniques outlined above, and you’ll have a solid chance of securing the raise you deserve.

Good luck!

You may also like:

• How to Get Promoted – Even in Uncertain Times (5 Practical Steps)
• Build a Strong Working Relationship With your Boss to Propel your Salary and Career
• How to Avoid Getting Fired

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