Do you feel uncomfortable asking for a raise?
Well, let me share the PREP method with you.
It's an effective method of asking your manager for a raise but keep in mind that while a
terrible salary can you make you hate your job a great salary doesn't make you love it.
Research has shown that many other factors such as career progression, the relationship
with your boss, and the nature of work are all more important than how much you get paid.
There are several things you should prepare.
Firstly, be awesome.
You should have a clear understand of what is expected of you, your key performance indicators
(your KPIs) and you need to be meeting or exceed your targets.
If your performing is rubbih, don't ask for raise.
Know your value.
If you don't know your market value, you won't be able to tell a good offer from a bad offer.
There are several things that affect your value such as your location, experience and
qualifications.
I recommend websites like glassdoor, payscale and careerbuilder, to quickly find out how
much you should be getting paid.
Practice what you will say.
This may feel a little weird to begin with but it is better to feel weird at home than
at work.
Practice in front of a mirror or with a friend so that you can be confident.
This is a negation; you're selling yourself, so you need to have confidence.
Schedule the meeting.
Don't just ask for a raise in the corridor or kitchen.
Book time to be F2F with your manager.
It shows you're intentional and serious.
But make sure you're fully prepared before, as your manager maybe available now!
Research - your company and your manager to understand their point of view.
This helps you prepare for potential responses.
From a company perspective you need to understand the financial position.
Are they making profit?
Is there a downturn in the economy?
What about in your sector?
If your company is publically listed, get a recent copy of the quarterly reports.
From your manager's perspective understand if they are the real decision maker or not.
Do they have the ability to sign off or do they need to escalate a pay rise?
You should expect that even if they do have the ability, they may want time to think.
Most managers need to consider: (a) Your performance and pay compared to co-workers
(b) How much it would cost to replace you.
Typically, managers will not pay you more than what they can replace you for
(c) Tenure.
Employees with several years tenure normally have a good cultural fit and are worth more
(d) The Company Review cycle.
Do you normally have an annual review?
Your boss maybe limited outside of it.
(e) Pay scales or bands.
In many companies jobs are allocated into salary bands.
You stand a much higher chance of an increase if you're not already at the top of your band.
Each of these factors will have an impact, positive or negative, on your chances. Know
the answers yourself.
Highlight the positive and have an answer for the negative.
Now you're ready to meet with your Manager and Explain your situation.
This is not just knowing what to say but how to say it.
You should never beg, threaten or antagonise your manager.
Even in the rare case where this does help you in the short term it will negatively affect
your changes for future promotions, bonuses and raises.
Consider your managers point of view.
Don't tell them that you need a pay rise because you want a bigger house or a new car - they
probably don't care and it will make you seem shallow.
Start by truthfully framing the discussion.
Explain what you like about your job and the company.
Tell them how you are committed and how you want to add value to the business.
Be humble but demonstrate your value based on your performance.
You need to be specific, so using data is a good option.
Show them your performance compared to targets or co-workers.
You may explain how your role has changed and is now more complex or has
greater responsibility.
This does not need to be a huge presentation typically 1-2 minutes is enough.
You then need to present your proposed salary.
Keep this simple.
Don't apologise.
It is very important that you present your figure first before your manager tell you
theirs.
This is because of the "Anchoring effect" which was made famous in the book "Thinking,
Fast and Slow".
The author won a noble prize for his research so it is worthwhile thinking about!
You don't need to understand all the details, but the research has shown the person who
speaks first anchors the discussion to the level they are thinking about.
If you speak 1st it anchors your managers thinking to level you are thinking.
Let me give you an example of some of the phases you may use
"Hi Sam, thank you for taking the time to meet with me"
"I am really thankful for the opportunity I have in this role.
I enjoy working here and having you as my manager.
I am engaged here.
I am committed to this company" "I want to be the best I can be.
For the last 9 months I have consistently met all of my KPIs"
"I feel there like there is an opportunity for my salary to be adjust to reflect my performance"
"I have research my market value and I feel a salary of $80,000 is a better reflection
of my skills, experience and performance" "Is this something that you can help me with?
You do not need to spend too much time justifying yourself.
Be respectful but direct.
Pivot.
Expect that in many situations your manager may say "No", "Not yet" or "Yes, but with
a much smaller offer".
That's okay, it's a negation.
The worst thing you can do is just say "Yes agree and leave the office.
Don't leave.
Understand why, understand the reason behind the reason.
This is as easy saying "Can you help me to understand why?".
Then listen to their answer and acknowledge their reasons and before you respond.
"So there are 3 reasons why".
Ask them what it would take for you to get a raise and go do it.
Circle back and close the loop.
Or perhaps there is a salary constraint and there is nothing they can do at the moment.
This is also okay.
Pivot to other options.
In many situations your manager may be able to approve a flexible work at home one-day
week or, equity in the company or perhaps a onetime bonus, or additional paid leave
each year.
So respond by saying "Okay, I understand that a salary increase is not possible at the moment,
what other options available?
Perhaps a more flexible working arrangement or a once off bonus?"
When it comes to pivoting, you expect that your initial offer may not be accepted.
Seek to understand why, listen to the response, acknowledge the reasons and then bring other
options into the discussion.
At the very least you should leave the room with an agreement to talk about this again in the future
I hope you enjoyed learning the PREP method.
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Thanks for watching.