Published July 2005

Know your worth
before suggesting a raise

Q. I am a middle-level manager (yes, we still exist). I have worked for the company for six years. Since then, my salary has increased 6 percent. In all but two years I have received no salary increase. I want a raise, a solid, substantial raise. I deserve it. I've earned it. And, with college on the horizon for the kids, I really need one. Why am I so reluctant to go into the boss's office and ask for a raise?

A. Because today you need to execute a strategic plan to get one. You must be willing to take a risk that you may fail. You must be ready to deal with initial rejection but not give up until you get what you think is fair value for your work.

To help, we'll turn to Kay Murphy, an Atlanta-based compensation consultant who designs pay systems for large corporations.

According to Murphy, the quickest way to more pay is to change jobs either in or outside your present company. Even a lateral promotion within a company can result in a 10 to 20 percent pay increase, she said. A new job with more risk and responsibility may bring even more.

For those who love their jobs and their employers, the road to more income can be treacherous at times. Large companies work hard to establish what are reasoned, market-value salaries for most jobs at each of their locations

They thoroughly analyze several factors relating to each job in the organization to determine its pay level, Murphy said. To improve your chances, she recommends that you learn as much as they know about the "market value" of your job.

In establishing salaries, companies first analyze each position and rank it for its complexity, the skills involved, risk and responsibility, and how essential it is to an organization's success, she said. Then, a dollar evaluation or competitive analysis measures how other employers, either in the same industry or geographical area, compensate similar jobs. Finally, said Murphy, most companies factor in the competency level of the person in the job.

Another wrinkle in salary compensation is gender disparity. The sad truth is that women simply are paid a lot less than men. Recent surveys showed that college-educated women were paid about $14,000 annually less than comparably trained men.

Murphy said other studies have shown that women more often know less about the value of their jobs than men; they usually take less risk, tend to stay in jobs longer than men and do not support women managers as much as they do men.

Once you do your salary homework, determine whether you are paid comparably to others in a similar position in your industry and in a similar economic area. Use your next meeting with an executive that has authority in budget and payroll matters to raise the subject. Follow the meeting with written documentation and a proposal for a raise.

Don't advertise or threaten to leave, but leave the distinct impression that you have not ruled out the possibility. Use phrases such as, "I want the company's expression of my value, performance and future here to be on the same plane as mine."

Your first job is to determine your value. Be prepared to assume more risks and responsibilities, set a realistic compensation goal, outperform yourself by 15 to 20 percent, document your successes, then ask for the amount you can demonstrate you deserve. Good luck.

Eric Zoeckler operates The Scribe, a business writing service. He also writes a workplace column appearing Mondays in The Herald. He can be reached at 206-284-9566 or by e-mail to mrscribe@aol.com.

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