How to increase your salary: a complete guide with examples

December 30, 2024

The real wage growth in the United States has been a mere 1.5% from 2020 to 2024, equivalent to only a 0.3% rise in annual pay. Despite cutting back on groceries, gas, and other expenses, you may find it challenging to save money for other things. This leaves little room for you to go out and have fun or spend a little more on something fancy instead of feeling guilty or stressed about it. Over time, you may also begin to feel anxious about money.

If you've worked at an organization for a long time and believe you bring more to the table with your skills, then there's no better time to ask for a raise. Remind yourself that it's natural to feel nervous about this. Use this article as a guide on making a solid case to demonstrate your worth and get the raise you deserve.

Things to do before you ask for a raise

Here are a few pointers to help you build a strong case for why you deserve a pay raise.

Be consistent at work

First, you'll need to value the work you do and do it with intent. Being enthusiastic about your work will help you deliver quality work on time. This also means being more accountable, taking on challenging work, and continually improving your skills as you do. This puts you in a better position when negotiating your salary.

Research the job market

Salaries usually vary by job industry and location, among other factors. Before you ask for a raise, you'll have to thoroughly research the current job climate in your industry, pay for similar positions at different companies, and the difference in pay between locations. Make sure to look at additional benefits, both monetary and non-monetary, such as stock options, health insurance, student loan repayment programs, paid time off, and wellness packages.

You can also use our job board to find out your earning potential and compare it against your current pay.

Seek feedback and make improvements

Schedule one-on-one meetings with your manager or lead to get their feedback. Inquire about areas for improvement and what they want to see more of. This is a great way to focus on the positives while being open to feedback, but it doesn't end there. You'll need to take their feedback and make the desired improvements.

“If you've worked at an organization for a long time and believe you bring more to the table with your skills, then there's no better time to ask for a raise.”

How to increase your salary

You've been consistent at work, the team is happy with your performance, and you have a realistic number in mind. Here are the next steps you can follow for salary raises.

Practice your pitch

If you're scheduling an in-person or online meeting with your manager, it's best to practice your pitch beforehand. Focus on three important aspects:

The value you bring through your experience and skills
The demand for your skill set in the current job market
The additional contributions you can make to the team

When discussing the value you provide, back it up with numbers and metrics. Point out the current demand and pay for your position. Your research comes in handy now. It may also help to share future plans with your manager, such as how you plan to expand your skills to contribute more. Here are some examples you can refer to.

Value

"Over the last six months, I developed an optimization algorithm that reduced our data ingestion time by 25%, giving us a significant edge over our competitors. I also worked on automating our current pipeline and saved approximately 30% of the time previously spent on manual tasks."

Demand

"I researched the current market trends for my role, and the average salary for my position here is above $75,000. This is about 15% higher than my current pay. With my 3-plus years of experience and specialized skill set, I request you consider a raise in my salary that's fair and matches the industry standards."

Contribution

"In the coming months, I've planned out a change in the architecture that'll allow us to reduce the application runtime and resource consumption rates quite significantly. This will certainly increase the demand for our solution."

Choose the right time

The best time to ask for a raise is when the company is financially stable and just after you've completed a significant milestone. You may also request a raise during your quarterly or annual review. It's best to wait at least six months to a year before you ask for a raise. Any shorter period than this might seem a little pushy.

Be open to negotiation

There can be several outcomes, and it's best that you're prepared. For instance, it's perfectly natural for your manager to ask for time to consider your request, show hesitation, or perhaps decline your request the first time. Here are some ways you can respond to a rejection:

Be diplomatic and polite. Don't let the rejection affect your body language and tone or make you resentful. Instead, thank them for taking the time to consider your request.
Learn more about their reason. Ask politely what factors drove them to make this decision. Do they foresee a squeeze in the budget? Are there additional factors that they used to evaluate performance? Or are they open to a raise, not immediately, but after a couple of months?
Suggest alternate options. If a raise is out of the question, you may request alternate options that work best for you, such as stock options, additional paid time off, resources for professional development, or a bonus.

If your manager tells you they need more time, relax and focus on your work. It's possible that they need additional approvals. If you haven't heard from them in more than two weeks, you can send them a gentle reminder.

What if there's no possibility of a raise?

If your manager declines a raise and there's no possibility of one for a more extended period, say three to four months, it's time to consider alternate options. You'll need to ask yourself if you're okay with waiting a few more months. Opinions may vary. For example, you might feel valued at work with a great work culture and may find it acceptable to wait it out. In contrast, you may be facing financial problems and may require additional income to supplement your earnings. In such cases, here are some alternate options you can explore.

Consider internal transfers

Sometimes, a lateral move to a different department can come with a pay increase. This will require you to evaluate the skills required for roles in the new department and learn about its functions, goals, and key personnel. Establish a good rapport with the other team through cross-collaborative meetings, and see if it aligns with your work style and preferences. Most importantly, you'll need to discuss your decision with your manager and get their approval.

Consider switching companies

According to a May 2024 report, the median change in annual pay for people who changed jobs was 7.8% compared to 5% for those who stayed. If you plan to switch, you'll need to consider several other factors such as relocation, family, personal interests, and overall career goals.

If you've given it serious thought and are ready to switch companies, you can begin by using job boards to look at jobs and narrow them down to the ones that align with your skill set, experience, and work ethic. Research each company thoroughly before you apply for interviews. You'll have to expand your skill set and polish your resume before applying. If you're ready with your resume, upload it to CareerBuilder to increase your visibility.

If you already have an offer, you can take a shot by conveying the same to your manager or HR. Often, this results in salary hikes and retention, as companies don't want to lose valuable employees.

Follow these helpful tips to help you increase your salary. Remember to do your research before, practice your pitch, and consider switching companies to get an increase in your salary.