How to Ask for a Raise From Your Boss (And Get It)

Download the free ebook, Negotiate Your Salary, A step-by-step guide to asking your boss for a raise! It will give you every step to getting a raise and includes free scripts and printable checklists!

Increasing your income is the foundation for building wealth. Learning how to ask your boss for a raise is the quickest path to get there. As you will soon learn, it is a skill. 

One of the best ways to increase your income is at the place you spend the most time each day. Your job. The good old 9-5. The place where you put your nose to the grindstone. 

You may start at an entry-level salary, but you don’t have to stay there. I have doubled my salary many times over. From making 30K a year to 6-figures, 5 years after being in the workforce. My wife did the same with these strategies that I am going to layout.                  

Getting a raise isn’t going to just happen. 

I take that back, getting the standard 2%-3% raise might happen. If you’re lucky. 

In a perfect world your boss would notice all your accomplishments. Allow you to have a daily nap break and give you the corner office.

Since we don’t live in that world. You have to come up with a plan. 

Just asking your boss for a raise out of the blue won’t cut it. Unfortunately, it is what most people do. 

Proactive communication always wins. Almost no manager on earth will say yes to raise when putting on the spot. I am going to layout my system on how to prepare your boss as to when you are going to ask for a raise, so you don’t have any guesswork. 

Why You Can’t Afford to Not Ask For a Raise 

The average person who gets a raise in the U.S. receives the bare minimum. This usually comes out to 2%-3% per year if you are lucky. This barely keeps up with inflation. Here is proof of inflation rates in the US for the last 20 years: 

Say your boss gives you a raise that is 2% every year. You are actually losing money every year at your job. Since the average is 2.15% the last 20 years, it is eating away at your income. This is what happens when you stand back and let a raise come to you. 

If you Don’t Negotiate it Can Cost You A Million Dollars

Would you ever leave a million dollars on the table because you didn’t want to have an uncomfortable discussion? 

If you don’t negotiate that is exactly what you are doing. 

In fact, a study was done and all else being equal. If employee A negotiated a $5,000 higher salary then employee B, Employee A could make a million dollars more over their career. This is based on the compounding of their initial salary and raises each year. 

Here is another chart showing that Kira, who negotiates just a slightly higher raise every 3 years, will make 6-figures. While Dave, who doesn’t negotiate will be earning $76,000. 

It is astounding what you can accomplish when you allow your raises to compound in your favor. 

Now that the numbers have convinced you this must be done, let’s dig in and show you how to ask for a raise. 

How to Ask Your Boss for A Raise 

Learning to negotiate with your boss is a skill. As time rolls on, your negotiation muscle will build, making this second nature. 

Expect this out of the gate. Nobody is a natural when they begin to negotiate. It is uncomfortable, that is a normal feeling. 

Let’s break this down by phases of your career. 

• When you get Hired 
• At your Yearly Review 

Each of these phases needs to be handled slightly differently. We will dive into both so you can start your career with the highest possible dollar. And, continue to outperform your colleagues year over year. 

How to Ask your Boss for a Raise as a New Hire 

Nobody is going to hand you anything. Especially when you are a fresh interviewee at a company. That is why you have to go into the interview with a plan. 

Step 1: Use Glassdoor to find out the average salary for your position 

Before you even interview at a position, use glassdoor or another site to check how much others are getting paid in the same job. At the same time, see if others are getting sign-on bonuses (more on this later). 

Having data to back you up during negotiation is a must. Employers can see right through someone who is not prepared. If they low ball you and there’s no data to back your claim, it will never work. Make sure you collect as much information about pay rates for your position as possible. 

Step 2: Understand That This is a Collaboration 

This should be a collaborative negotiation from start to finish. Do not get defensive or confrontational if things do not go your way. It is counterproductive, disruptive to the task at hand, and hurts your reputation. 

Step 3: Do not Disclose What You Make At Your Current Job in the Interview 

Many states don’t allow a potential employer to ask what you make now. This is extremely valuable information for a potential employer so they will try to get it out of you. Employers craft ways to ask what you make without directly asking, don’t tell them. 

If they ask “how much do you want to get paid?” Simply reply with a question: 

“What does this role offer?” 

This puts you in the driver’s seat and allows you to gather extremely valuable information. What they are willing to pay. 

Step 4 : Know What You are Worth

Don’t let Anyone tell you what you’re worth.

Managers respect people more when they know what you’re worth. It is completely expected for you to negotiate. If for some reason the prospective employer seems caught off guard, this is a red flag. It means they may not be willing to negotiate future raises. Crushing your opportunity to advance in your career.  

Step 5: Ask for Their Number Before Revealing Yours 

Even if it’s just a range. You want to be as informed as possible. Finding out what their number is will give you the proper tools to move onto the next step. Do not fret if it is lower than what you expected. The potential employer may be just utilizing a negotiation tactic. This is why knowing the going rate (step 1) is so important. 

Remember you do not have to accept anything on the spot. If your offer is lower than expected, you can take a day or two to think about it. Never feel pressured to make an instant decision. 

Step 6: Give them Your Expected Salary (Script) 

Now it is time to reveal what you expect. There is a very specific way that you want to propose your salary. It is contrary to what most people do. It will allow you to maximize your salary. 

I am excited about the opportunity. (*Talk about what you are excited about the company) and I know we can come into agreement about the salary. Based on the market/ goals I have set for myself/ standard of living / what I have been learning/ other opportunities I have been looking at. I would expect to be at the _______ to ________ range.

Here is the key to this entire script. 

The low range needs to be your highest number. 

Highlight this. Underline it. Do whatever you need to remember this. 

So if you want this to be at $70k per year, you would say: 

Based on the market and what I have seen at companies your size, I would expect to be at the 70- 80K range.

What this does is gives your potential employer room to negotiate above your highest number. If you really want to go for it, make the number higher than your highest number. 

I have seen people ask for more than their highest number and get it! 

Utilizing this strategy allows you to have breathing room. Even if your employer negotiates below the low end of your range. It will most likely be well within the acceptable number. 

Step 7: Negotiating is more than just talking about salary. 

Your salary is only one part of the equation. There are many other factors that could make your job enticing. 

• More time off 

• Benefits

• Yearly Bonuses

• Sign-on bonuses 

Think about what you value most. If you want to travel for 6 weeks a year, maybe more time off would fit your values. 

Sometimes all it takes is a simple ask to get a sign on bonus. A colleague of mine used this exact suggestion and received a $10,000 sign-on bonus, just for asking. 

Step 8: Accept or Reject with Grace (Script)

If you come to an agreement on the offer congrats! 

If not, reject the offer politely. Never burn bridges. Always treat everyone with respect even if they do not treat you with respect. Here is a script I use:   

I truly appreciate the offer. I wish we could have come to an agreement but I do not think this role will fit my current needs and goals. You were wonderful to speak to, _____________ and I hope we can collaborate in the near future. 

How to Ask Your Boss For a Raise At Your Current Job 

Many people get to their reviews expecting a raise. When they don’t magically get the raise they wanted, they pout. Or worse blame others. That is because they didn’t have a planned system. 

The #1 rule to getting a raise at your job is that there should be no surprises. 

Your boss is not going to just give you more money on a silver platter. You have to show that you deserve a raise. Lucky for you, I have developed a step-by-step process on exactly how to do this. 

This is an advanced strategy. Nobody in your company will do this and it will give you the leg up you need. 

This process is so everyone is on the same page. Nobody likes being put on the spot. Your boss will know that you expect a raise and how much of a raise you are expecting. 

You will know what your boss expects from you to receive a raise. It removes the majority of conflicts that people come across in the workplace. Here is what to do: 

6 Months From Yearly Review: 

Step 1: Identify the Date of Your Yearly Review 

The first step is identifying when your yearly review will be. You are targeting this date because in the next step you will meet with your boss. It is extremely important to have this conversation far in advance from your yearly review. 

Step 2: Meet with Your Boss 6-Months Before Your Yearly Review 

The next step is to meet with your boss 6-months before your review.. This allows you ample time to discuss the next steps and execute your plan. 

Step 3: Identity the Areas that You Want to Improve 

Come to the meeting with a plan in mind on areas you want to improve. Plainly identify where you want to improve and how it will help grow the company or make them more money. 

Take this time to promote the value you bring to the company. There is no amount of money in the world that is deserved without someone bringing value. 

Step 4: Ask What you Need to do to Get to The Next Level (Script) 

Ask your boss what you need to accomplish to get to the next level. Maybe it is a promotion or a raise. Here is a script to practice and master: 

Thank you again for meeting with me, Bosses Name. My goal is to bring as much value to the company as possible by ______________, _______________, and _______________. What areas do you see that I need to improve on? What areas do you see we as a company need to improve on? I want to grow with this company and show how valuable of an asset I am. With your expertise and guidance I know that I help in maximizing the company’s mission and core values. 

Once you have identified the key areas you want to improve. Request a follow-up meeting in 3 months. After the meeting, send your boss a calendar invite so they will have that time booked while it is still fresh in their mind. Everyone’s calendars begin to pile up. 

If your boss is extremley busy, they may delay your follow up meeting. But, if the meeting is already scheduled, your chances of keeping that time slot skyrocket. 

3 Months From Yearly Review: 

Step 5: Prepare The Numbers you are Asking For 

You want to prepare 3 numbers before your 3-month meeting. Again, look at glassdoor to see what someone in your position should be paid. This will allow you to have some data to fall back on. 

1. Want Number 
2. Wish Number 
3. Dream number

Step 6: 3-Months From Yearly Review Check in With You Boss 

This meeting is key. 

Check in to make sure you are on track to making the jump to the next level. Make sure you come prepared with all you have accomplished since you last talked. You can put these accomplishments on a sheet of paper and leave it with them if you’d like. 

It just re-iterates your goals, and that you are delivering on your goals. You are setting yourself up for review day so there are no surprises. 

During this same meeting, you will lay out the expected pay increases you are looking for. This eliminates any surprises and maintains full transparency. Here is a script for you to memorize/tweak to your situation.

Based on the market/ goals I have set for myself/ standard of living / what I have been learning/ other opportunities I have been looking at. I would expect to be at the _______ to ________ range within the next 12 months.

Make sure the lowest number is on the high end of your expected pay range. So if you want this to be at $85k you would say 

“Based on the market and what I have seen at companies your size, I would expect to be at the $85K – $95K range within the next 12 months.” 

The key here is the phrase, the next 12 months. If they can not deliver the full raise in three months, it allows you to put a timeframe as to when they will need to give you that pay bump. 

1 Month From Yearly Review: 

Step 7: One Month From Yearly Review Check In With Your Boss 

Check in one last time with your boss before the yearly review, just to see if your performance is on track. 

Step 8: Have your Yearly Review 

The Day of neither of you are surprised that you are asking for the raise. 

You are going to echo the conversation that was had in step 6. Only now you have accomplished everything on the list. 

Your manager will not be surprised since you have been communicating with her/him the entire way. Show the value you bring to the company and all the accomplishments you have achieved.

If you did all the work the raise will come. Have a celebration. 

What if I Don’t Get the Raise?

If you do all the work, the expectations were set, and they still don’t give it to you. This may tell you that it’s time to move on because there is no room to grow at your current position. 

It is better you find this out now then stay at that company for years without your hard earned efforts being rewarded. 

Your Personality Matters. If you’re shy, practice more. 

There is a lot at stake here. If you’re shy, you need to practice more with scripts so you can feel uncomfortable. 

If you are shy and don’t have a script you are increasing the chances of failure. 

Trust me, scripts may sound clunky at first, but reciting them naturally is a skill. It is something you can develop over time. If you don’t have much experience commit to practicing a few nights a week. Over time you will get better. 

I’m an introvert at heart. I used to be a little shy when I entered the workforce. One way I liked to work on my scripts was to make scripts for big meetings I had each week. This way, you are practicing with real people at lower stakes. You become a pro quickly.

NEED SCRIPTS? Download them here free!

What You Should Never Say When Asking for A raise. 

There are a few things you should never say when asking your boss for a raise. Keep these in mind so you don’t ruin all the hard work you put in. 

Don’t Talk About Other Colleagues Salaries as a Reason You Should Get a Raise 

Never say things like, “Bill makes X and I am a higher performer. I deserve to make more than Bill. “

This is office gossip and counterproductive to your goal. You want to collaborate with your employer and make them want to give you a raise. 

Don’t Get Too Personal

You are looking out for numero uno when you ask for a raise. Just make sure you don’t portray this with phases that I only show your raise as a benefit to you. 

Instead show how your performance has benefitted the company’s bottom line or increased productivity in your department. 

Don’t Give an Ultimatum 

Do not give your boss an ultimatum unless you are prepared to walk out the door that second. I have seen too many people try to play hardball when asking for a raise only to be shown the door. Ultimatums are not collaborative.

 If you decide that it is time to find a new job, resign the proper way. Don’t ruin a reference or your reputation that you worked so hard for. 

Download the free ebook, Negotiate Your Salary, A step-by-step guide to asking your boss for a raise! It will give you every step to getting a raise and includes free scripts and printable checklists!

We have a podcast on How to Ask your Boss for a Raise! Check it out here!

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andrew

Andrew is the author behind Dollar After Dollar, a blog that teaches you how to build wealth and gain financial freedom.

Andrew is the host of The Personal Finance Podcast, a show that is changing the way you think about your money. His primary goal with the podcast is to bring as much value as possible to his listeners.

Andrew's favorite free financial tool he's been using since 2014 to manage his net worth is Personal Capital. Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.

His favorite investment platform is M1 Finance, a site that allows him to build a custom portfolio of stocks for free. It has no trading fees and is his preferred way to invest without having to lift a finger.

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