How to Ask For a Raise When You Are Underpaid – 8 Tips

Are you tired of working hard but never feeling like it’s enough? Do you feel like your paycheck doesn’t reflect the value you bring to your job? You’re not alone. It’s a sad reality that many people aren’t paid what they’re worth. Fortunately, there is an effective way to ask for a raise when you are underpaid.

In this blog post, we’ll dive deep into how to ask for (and receive!) the raise you deserve. Whether you’re an experienced professional or just starting out in your career, these tips can help ensure that you get paid what you’re worth!

What we’ll cover:

• Researching Market Data
• Choosing the Right Time
• Effective Communication Tactics
• Mindset Strategies

Do Your Research if You Feel You Are Underpaid

Researching industry standards and salary ranges for your position and location is super important before requesting a raise. This will help you justify your request with data.

Conducting thorough research on industry standards and salary ranges for your specific job and location can help you build the case for why you deserve a higher salary.

Having concrete data to present during your meeting with your boss can make all the difference.

Here are a few ways you can find salary information:

• Research salary comparison websites, such as Glassdoor, Salary.com, or PayScale.
• Review job postings for similar positions on sites like LinkedIn and Indeed.
• Network with professionals in your field.
• Research the cost of living in your location.
• Utilize online forums or discussion boards like Reddit and Quora.

By showing that you are aware of what others in similar positions are making and what the current market values your job at, you can help justify your request with objective evidence.

So before your meeting, make sure to do your research and arm yourself with the knowledge you need to confidently ask for what you deserve.

This is the first, and arguably most important step before you ask for a raise when you are underpaid.

Choose the Right Time to Ask For a Raise

If you feel you are underpaid, it is important to broach the subject at an appropriate time.

Consider discussing your raise during your performance review, where your accomplishments and contributions can be discussed in-depth.

Another great time to request a raise is after a significant achievement, such as landing a big client or completing a major project.

Timing is everything when it comes to asking for a raise. Here’s why:

• According to a survey by Glassdoor, 68% of employees who asked for a raise during their performance review received one.

• Based on another survey by Salary.com, those who negotiate their salary regularly can earn on average $500,000-$1 million more over the course of their careers than those who don’t.

Carefully considering when to discuss a raise is crucial in maximizing your chances of success and achieving your desired salary!

So don’t be afraid to speak up and ask for a raise when you are underpaid, as it could have a massive impact to your financial future.

Schedule a One-on-One Meeting to Request a Raise

It’s important that you request a private meeting with your direct manager to ask for a raise when you are underpaid.

You want to avoid bringing it up in casual conversation, as this could come across as unprofessional or even confrontational.

Here are some benefits in arranging a one-on-one meeting:

• Comes across respectful and courteous.
• You will have the undivided attention of your manager.
• Allows for a more professional and structured approach.
• Provides a platform to present justification.
• Gives your manager time to consider options before responding.

Remember, advocating for yourself is essential, and your manager may be more receptive than you think.

This is a common best practice for how to ask for a raise when you are underpaid.

Highlight Your Achievements When Seeking a Raise

Every employee dreams of being acknowledged for their hard work and accomplishments.

It’s essential to highlight your achievements and contributions to the company, especially when it comes to asking for a raise.

Clearly articulating the value you bring to the company allows for your manager to advocate for you to leadership in efforts of granting a pay increase.

• Salary.com conducted a survey showing that nearly 70% of employees who asked for a raise and provided specific achievements received the salary increase they desired.

Remember to provide specific examples, data, and measurable results to back up your claims and make a strong case for why you deserve a raise. By doing so, you can confidently and effectively negotiate for the salary increase you deserve.

Here are some examples of achievements you could present:

• Project Completion: Successfully complete a project on time and within budget can showcase your skills in managing tasks and resources effectively.

• Sales or Revenue Increase: Highlighting an increase in sales or revenue can be a strong indicator of your performance and contribution to the company’s success.

• Customer Satisfaction: Positive feedback from customers or clients can demonstrate your excellent communication and customer service skills.

• Cost Savings: Implementing a cost-saving measure or strategy that resulted in significant savings for the company shows your ability to think critically and make valuable contributions.

• Leadership: Taking on additional responsibilities, mentoring colleagues, or leading a successful project displays your leadership skills and potential for growth within the company.

Remember, when highlighting your achievements, be sure to tie them back to the overall goals and success of the company. This is one of the most powerful ways to ask for a raise when you are underpaid.

Share Market Data to Show You Are Underpaid

Now is the time to present the research you’ve done on industry salary standards!

By presenting market data, you are removing emotions or opinions that you are underpaid, but instead proving facts based on statistics.

This is an extremely effective strategy that can significantly increase the likelihood of receiving a raise. Check out these stats:

• According to a survey by Payscale, employees who present market data during salary negotiations have a 73% success rate in receiving a raise. This is significantly higher than the overall average success rate of 39%.

• The same survey revealed that the average salary increase for employees who present market data is 6.5%, whereas those who do not use this tactic only receive an average increase of 3%.

Presenting market data is a valuable strategy that can help you secure the salary you deserve while maintaining a positive relationship with your employer.

Be Prepared to Listen During the Meeting

Your employer may have legitimate reasons for the current compensation structure that you haven’t considered.

Being prepared to listen to feedback and engaging in a discussion can lead to a better understanding of the situation.

Here are some of the most common reasons that salary increases are not approved:

• Budget Constraints: Companies often have a limited budget for employee compensation and need to prioritize where to allocate those funds.

• Performance Concerns: Employers may hesitate to give a raise if they feel an employee’s performance does not warrant it.

• Lack of Justification: Employees may feel entitled to a raise based on their length of service, but employers may need more tangible evidence to justify the increase.

• Market Trends and Competition: If competitors are not giving salary increases, a company may be hesitant to do so as well.

• Company Financials: When a company is facing financial challenges or experiencing losses, it may not have the resources to give raises.

• Economic Factors: During an economic downturn or recession, companies may freeze salaries as a cost-cutting measure to avoid layoffs.

It’s important for employees to understand that there are many factors at play when it comes to salary increases and that it’s not always a reflection of their value or worth as an employee.

However, don’t be afraid to ask for a raise when you are underpaid, but be open to hearing your employer’s perspective as well.

Stay Professional and Positive When You Ask For a Raise

Asking for a raise when you are underpaid can be a difficult conversation to have with your employer, but it’s important to approach it professionally and positively.

It’s crucial to maintain a respectful tone throughout the conversation and avoid sounding confrontational or resentful.

Instead, present your case calmly and clearly, outlining why you believe you deserve better compensation.

By staying professional and positive, you increase the likelihood of having a successful outcome and maintaining a strong working relationship with your employer.

Remember, asking for a raise is a normal part of career growth, and you owe it to yourself to ensure that you are being fairly compensated for your hard work.

Alternatives if You Don’t Get a Raise

It’s also important to have a backup plan in case your request for a raise is denied.

Having a backup plan and being prepared for various outcomes can help you navigate difficult conversations like these with confidence and ease.

Here’s a list of some options you have if your request for a raise is denied:

• Ask for Feedback: Asking for feedback on how to improve your chances for a raise in the future is a great option.

• Request More Responsibilities: If your request for a raise is denied due to lack of experience or qualifications, you can ask for more responsibility that will help you gain the necessary skills.

• Consider a Performance-based Raise: Instead of a general raise, you can propose a performance-based raise where your salary will increase based on achieving certain goals or targets.

• Revisit the Conversation at a Later Time: If your employer is unable to provide a raise due to financial constraints, you can ask to revisit the conversation in the future.

• Explore other Job Opportunities: If you feel like you deserve a higher salary but your current employer is not willing to provide it, you may want to consider looking for other job opportunities.

Remember, it’s important to approach these options professionally and with an open mind.

Your employer may have valid reasons for denying your request for a raise, but by exploring alternative options, you can still work towards achieving your desired salary and career goals

Conclusion

Asking for a raise is a difficult process and the outcome isn’t always guaranteed. However, with thorough preparation and professionalism, you can give yourself the best chance of success.

Make sure to adequately research industry standards and salary ranges beforehand, and don’t be afraid to bring hard data to your manager.

Understanding how to ask for a raise when you are underpaid will help make the whole process easier and more successful.

Pay attention to detail as timing is also very important. Make sure to choose an appropriate time to make your request for a higher salary that also falls in line with company expectations.

If for some reason you don’t receive the raise you requested, it’s not the end of the world, there are a number of alternatives that you can consider.

It’s hard work, but it pays off in the end. If you’d like to learn more about earning a higher salary, check out our resource center.

FAQ

Q: How do I know if I am underpaid?

A: Research industry salary standards for your job position and compare them using sites like Glassdoor, Salary.com, or PayScale.

Q: Is it appropriate to ask for a raise during economic downturn?

A: It may not be the best timing, but it’s important to advocate for fair compensation regardless of external circumstances.

However, understand that a company’s financial situation may affect their ability to give raises.

Q: What should I do if my request for a raise is denied?

A: Ask for feedback on ways to improve your chances in the future and have a backup plan in case it happens again.

This shows your employer that you are committed to growing within the company and willing to work harder.

Q: How often should I ask for a raise?

A: It’s important to have open communication with your employer about compensation and regularly evaluate if you are being fairly compensated based on market trends and your performance.

You can also discuss salary expectations during performance evaluations or when taking on additional responsibilities.

However, it’s not advisable to ask for a raise too frequently, as it may come across as entitled or demanding.

Q: How should I approach the conversation about getting a raise?

A: Stay professional and positive throughout the conversation and present your case calmly and clearly.

Avoid being confrontational or resentful, and be open to hearing your employer’s perspective as well.

It may also be helpful to have hard data or examples of your contributions and achievements to support your request.

Q: How can I prepare for asking for a raise?

A: Adequately research industry standards and salary ranges beforehand, gather evidence of your accomplishments and contributions, and have a clear understanding of your value as an employee.

It’s also important to choose an appropriate time to make your request that aligns with company expectations.

Q: Is it okay to ask for a raise if I haven’t been at my job for a long time?

A: It depends on the circumstances and your performance within that short period.

If you have taken on additional responsibilities or achieved significant accomplishments in a short amount of time, it may be appropriate to discuss a raise.

However, it’s important to also consider company policies and expectations before doing so.