Friday, December 11, 2009, 3:49PM ET - U.S. Markets close in 11 mins..

Jim Citrin Leadership by Example

Jim Citrin, Leadership by Example

The Five Steps to Getting a Raise

by Jim Citrin

Email this Page IM this StoryBookmark this StoryAdd to your Del.icio.us accountDigg this StoryPrint this Story
Good (649 Ratings)
2.67334361/5
Posted on Tuesday, March 13, 2007, 12:00AM

Be advised -- this column could be dangerous if not handled with extreme caution. One of the most delicate issues in business is compensation, especially when it comes to your own, and mishandling the matter can set you back or even cost you your job.

Moreover, amid a widening gap between the highest income earners and everyone else in the current economic landscape, you might find it frustrating to have to fight for a standard 3 to 4 percent salary increase.

So what can you do about it?

The following five steps offer you the best chances of getting a raise, while at the same time minimizing the attendant risks. If you follow them thoughtfully and sensitively, you're likely to position yourself for a compensation increase in the short or medium term.

Here are the five steps:

1. Deserve a raise.

In order to get a raise, the most important thing to do is deserve one. Why? Under relentless pressure to satisfy insatiable investors, companies must achieve increased profitability quarter after quarter. To keep their P&Ls in fighting shape, they look for ways to eliminate all nonessential positions, through the application of technology, outsourcing, or just pushing employees ever harder.

While nearly everyone thinks he or she is performing well at work, the fact is that some are more central to the organization's success than others. Your best protection is to make yourself as indispensable to the enterprise as possible.

More than ever, you should find a way to work on things that support how your company achieves growth and creates value. It's incumbent upon you to know exactly how what you're working on fits into the strategy of the company. If you don't know, find out. If you realize your project is on the periphery, find a way to get involved in something in the center of the value-creation engine and corporate strategy.

Once you're sure you're working on the right things, work hard, be a team player, be positive, and take the appropriate amount of initiative.

2. Get the facts.

It's also your responsibility to know your market value and how your compensation stacks up. You need to learn how your level, role, experience, and performance compare to the market.

To find out, talk to your company's human resources professionals to understand the pay scales in the company. Also talk to recruiters and people from other companies in similar roles. Of course, never has so much salary information been so readily and publicly available -- enter "executive compensation" in Yahoo! Search and you'll get around 20 million results.

One easy-to-use, high-quality resource is Salary.com. This site includes a Salary Wizard feature and Career Resources center with information sorted by job type, level, ZIP code, performance, education level, and so on.

If you work in a public company, be sure to study your company's proxy statement, where the compensation of your own top executives is detailed. This will help you understand the pot of gold toward which you're striving so hard.

3. Talk to your boss.

Now you're ready to have the tricky compensation conversation with your boss, and it's imperative to be sensitive: Asking your boss for a raise is one of the most delicate conversations you can have.

It's well known that managers find giving performance reviews anxiety-producing in the extreme. They find compensation discussions even more stressful. So make sure you have this talk in a constructive manner by putting the conversation into a broader context.

Talk about how your work fits into the company's strategy. Discuss how you see your contribution and performance. Solicit his or her feedback. Share your findings from step 2, and ask what he or she thinks your expectations should be. Don't be pushy, but be clear that compensation is an important part of the overall equation for you.

Make sure to communicate that there are other important dimensions as well, such as feeling that you're making an important contribution to helping the company win; enjoying and respecting the people with whom you work; and continuously learning and growing. Your boss will almost certainly respond better when compensation is "on the list," but not at the top of the list.

There's one other thing to recognize, however -- your boss probably feels the same way about his or her compensation that you do about yours. The ability to give you a raise is likely to be constrained by your boss's own compensation, as well as by approved salary ranges for different employment levels. But here's the key: If you conduct this conversation well enough, you might even be able to arm your boss with the approach to have the same discussion with his or her boss.

4. Take on a special project.

If your compensation is locked-in for 2007, and it may well be, another approach is to come up with a special project that you can offer to lead. Assuming that you now fully understand how your job and work fits into the company's strategy, you should be able to devise a viable effort that would further support the strategy.

Suggest to your boss that you lead this special project -- and if you're successful, that you be eligible for a special performance bonus.

5. If all else fails...

If your salary is locked-in, the pot of gold isn't all that enticing, and there's no real opportunity to be rewarded in the way you think you deserve, then it may be time to consider looking outside the company for a different opportunity.

Obviously, this should be a last resort if you like the work you're doing and enjoy and respect the people with whom you're working.

Email this Page IM this StoryBookmark this StoryAdd to your Del.icio.us accountDigg this StoryPrint this Story

Rate This story

Good (649 Ratings)
2.5/5
Sign-in to rate!

120 Comments

Showing comments 6-35 of 120<< PreviousNext >>
Sort: first to last

  • Fire Marshall Bill - Wednesday, April 4, 2007, 11:18PM ET  Report Abuse

    • Overall: 1/5

    There is nothing new here. This is common sense that everyone already knows about. Very disappointed.

  • Chengwei - Wednesday, April 4, 2007, 10:48PM ET  Report Abuse

    • Overall: 1/5

    this article does not have any useful things in it. Please don't waste your time to read it.

  • Yahoo! Finance User - Wednesday, April 4, 2007, 9:15PM ET  Report Abuse

    • Overall: 1/5

    These are such fresh and innovative ideas...thank you Captain Obvious.

  • jeffj - Wednesday, April 4, 2007, 8:24PM ET  Report Abuse

    • Overall: 1/5

    You can see Jim C is absolutely indispensable with articles like this…

  • Jamie K - Wednesday, April 4, 2007, 6:07PM ET  Report Abuse

    • Overall: 1/5

    Hey everyone, the sky is blue.

  • tammy t - Wednesday, April 4, 2007, 4:19PM ET  Report Abuse

    • Overall: 3/5

    This article gives some information that we've heard before, but it also gives insight to specific issues that could give you an advantage. These are points of view that you probably haven't considered before! There were for me!

  • Michelle - Tuesday, April 3, 2007, 5:51PM ET  Report Abuse

    • Overall: 2/5

    I think it's important to realize that when reading an article such as this one, we need to keep in mind that we shouldn't expect a revelation. Most of these articles have interesting titles, but I can honestly say I am usually disappointed with most of the articles published here. Atleast he gave a website that could be usefeul to people wanting to know more about salary rates, etc.

  • MIKE Luciap - Thursday, March 29, 2007, 12:37AM ET  Report Abuse

    • Overall: 4/5

    Well, It sounds good. Lets all try and do what seems applicable to our own situation. Nearly all employees are always looking forward for salary increase, no matter what level he/she is. The important thing is to DO what's right for you and dont be controlled with the idea of others...

  • RyanH - Wednesday, March 28, 2007, 4:44PM ET  Report Abuse

    • Overall: 1/5

    so can i write an article stating the obvious and call myself an expert? what a waste of time. as are most articles on here concerning jobs, pay, etc.

  • Yahoo! Finance User - Wednesday, March 28, 2007, 2:40PM ET  Report Abuse

    • Overall: 1/5

    How about telling us something we don't already know?

  • Yahoo! Finance User - Wednesday, March 28, 2007, 2:36PM ET  Report Abuse

    • Overall: 1/5

    I can't believe I wasted time reading this. To get a raise I should deserve one, research salary, talk to my boss, take on a special project, or get a new job? The author has a real strong command of the obvious. Perhaps his next article should cover the complexities of breathing (Step 1 Inhale). Seriously, why does Yahoo continue to post such mindless drivel and pass the off as articles?

  • C. - Wednesday, March 28, 2007, 7:52AM ET  Report Abuse

    • Overall: 2/5

    In today's economic situation, most corporations are trying to save a buck. I speak from experience because if you are middle management, you tend to be the ones most hardest hit with layoffs. My husband has been the victim at least 4 times. He has worked in large corporations as well as small companies. You cannot ask for a raise in this day and age and if you do, you may want to consider finding a new job. Employers want to hire on the cheap. My husband was making almost 60k a year about 5 yrs ago and because of this lousy economy, he has lost 20k in salary. We lost everything and are going down a second time because he was laid off again. I work in retail and you just cannot ask for a raise in this industry. I was lucky to get the raise I got this year. Sooner or later my salary is going to reach its cap, and then it will be time to start doing something else. Mind you, my husband and I have worked blue and white collar jobs and are experienced in the corporate world. It is getting harder and harder to run a household with the way the economy is and right now, we are running in negative numbers with no end in site. He is a diabetic and 300 a month just goes for his medications. No state agencies can help, because they say we make too much. HAH! How can you support a family of 3 on /- 45k a year in the state of NJ??? These articles seem to be somewhat of a fairy tale. I say this because if you aren't making a 6 figure salary or have the degrees to back it up, you will go nowhere.

  • Yahoo! Finance User - Friday, March 23, 2007, 9:42AM ET  Report Abuse

    • Overall: 2/5

    I think this might work in a small to medium size company. But working for a Big Corporation, outside the US, it is just unreal. The company is here to make money, by cutting on costs. No matter that I've just been through the second promotion within one year and reached team leading role (with inflation level pay rises), I'm the only one knowing how operatios run in 6 different markets, I'm still dispensible. And will ever be because big companies will always find it cheaper to hire someone else, while having operational problems in the short term, than opening a window for everyone else to start demanding pay rises because the other one got it. So, YES, look for another job, be "on the market", when something better comes up dump the company like it would dump you!

  • hani - Thursday, March 22, 2007, 7:09AM ET  Report Abuse

    • Overall: 2/5

    Thank you very much for that...but in the end we all know that kind of strategy, we all do that by nature…I mean I'm not going to ask for raise if I don't know how much I deserve based on the market and the amount of work I'm doing …and the only way to ask for it, is only by talking to the boss, and here the tricky problem, that what the most people miss…I mean there is several way to do that correctly. And it would be really appreciative if you told us how to do that….what the right techniques to get him convinced …I know you talk about that…thank u…but if you focus a little bit about that, I mean details … and thanks in advance

  • Yahoo! Finance User - Monday, March 19, 2007, 5:59PM ET  Report Abuse

    • Overall: 3/5

    Very good info

  • Kool Moe Dee - Saturday, March 17, 2007, 11:54PM ET  Report Abuse

    • Overall: 5/5

    very well though out. provocative reading, although alot of the points i have thought about and used previously.

  • Spiletta42 - Saturday, March 17, 2007, 3:57PM ET  Report Abuse

    • Overall: 4/5

    I think the article has fine advice, if you're in a position to implement it, but I question whether anyone who needs a raise is ever in such a position. The work I personally do brings in ten thousand dollars in monthly revenue for a service business with less than a dozen employees, I make less than 15% of that, so that 'deserve a raise' thing sounds promising. But the fact is, employers will pay as little as they can manage to pay. They have absolutely no reason to give you more money, ever. My boss, given the choice between saving my life from an oncoming semi and picking up a penny from the street, would choose the penny without blinking. He certainly doesn't care if I'm happy. I signed a non-compete agreement, so I can't go elsewhere, even though I learned from the link in this article that my salary is well below average for my job and geographic location. I took a pay cut when this owner bought the business, lost all of my benefits, and receive no vacation time, holiday pay, etc -- heck, I don't even get my government-mandated lunch break. Why would any strategy convince him to increase my pay? He owns me, I have no escape unless I am lucky enough to be run down by the hypothetical semi. He knows I can't quit, doesn't care if I'm unhappy and financially struggling. He has his SUV and his country club membership and his three story house. I am dirt to him. I can't even talk him into springing for an office chair that isn't broken. Is there a strategy for dealing with that? That's what I want to read.

  • Kelli N - Saturday, March 17, 2007, 12:06PM ET  Report Abuse

    • Overall: 2/5

    Where I work everyone receives the same raise regardless of performance, from those of us on the bottom end of the ladder, to the one lazy worthless middle manager we have who gets away with everything while the rest of us receive discipline for her mistakes. You know what I did to get a raise? I landed a second job. That is the reality of the working world today.

  • Christopher D - Friday, March 16, 2007, 8:05PM ET  Report Abuse

    • Overall: 5/5

    As long as there are big rich bosses in big corporations...don't expect anything. Be happy that they did not turn you into a slave, because their "lawsuites" can make you homeless, working for them around the clock, and not get paid! Believe me, soon there will the a few VERY rich people and the rest...slaves! (Good thing that past revolutions give us some head-start in applying history to present times)

  • Dan S - Friday, March 16, 2007, 5:46PM ET  Report Abuse

    • Overall: 4/5

    Most of this article is right on the money. As someone who created a million dollar company, I am surprised by the immediate dismissal of Jim's advice. Here's my two cents worth: 1. Being valuable to a company doesn't always directly tie to money. For example, I always appreciate the people who have clean work areas more than those who don't. Think about what image your projecting and remember your appearance and actions represent the company you work for. 2. No matter how large a company gets the people in charge are people too. Even if they cannot justify a raise this year, if you handle it correctly you'll be respected and remembered.

  • Alex - Friday, March 16, 2007, 2:33PM ET  Report Abuse

    • Overall: 1/5

    Oh boy! Let's face it the world of business is changing and raises are quickly becoming a thing of the past, along with bonus incentives, and here is why. Corporate America is greedy; constantly looking for rapid growth and that is simply not going to happen. Every quarter numbers are given with an expectation of increased revenue, but the consumer base does not exist to support it. With rising production costs and international competition, the market place is just not as big as it used to be. Corporate business needs to start concerning themselves with maintaining what they have, but many of the "bigwigs" making the decisions don't see it this way and simply want a bigger bottom line. They push for expansion and subsequently fail, causing reduced profits, which result in low raises and lay offs. In the “do or die” world of today, standard labor will not constitute a raise no matter the hours or work put in. Meaning all you project managers, designers, and tech guys out there – forget it. The only sure way to justify additional compensation is if you (directly) as sales or account management bring far more to a company in sales then you do in salary.

  • Yahoo! Finance User - Friday, March 16, 2007, 1:53PM ET  Report Abuse

    • Overall: 1/5

    So many industries have their own compensation structures, that this article is irrelevant. Considering how employee hostile many companies are, your best strategy is to look elsewhere as some people have suggested. I sure hope the author wasn't paid more than 2 cents for this article.

  • gingerroseland - Friday, March 16, 2007, 1:31PM ET  Report Abuse

    • Overall: 3/5

    The story has good merit. However, another factor with larger corporations is that there are sometimes 'salary grids' or ranges. If your salary is high within the grid for your level, you may not get a raise even if you walk on water. Also, for those writing in comments, if your spelling, grammar and word usage are indicative of how you write for your job, this might be holding you back as well.

  • Yahoo! Finance User - Friday, March 16, 2007, 1:05PM ET  Report Abuse

    • Overall: 2/5

    Good info if you are already in a position in a company that allows you to make yourself indispensable. This article sounds more along the corporate lines and may not fit in with the average American worker who does need to pay the bills, is not management orientated, but is doing a far better job than his fellow employees. Sometimes you may be someone who can be easily replaced in a menial job, but you know you go beyond whats required, are always more dependable and willing to take on more tasks if needed. In some cases, that makes you a lot more valuable.

  • Dave - Friday, March 16, 2007, 1:02PM ET  Report Abuse

    • Overall: 2/5

    This is all well and good. I have made it up to the stage of making myself indispensable and have succeeded, but due to working for a none profit company that bases all raises and promotions on nepotism and leaves all non family members in the dust with all the responsibilities I will be stuck with low pay and a heavy work load for the rest of my employment here. I can take the advice found in number 5, but I love the work I do and all the people I work with and loath to have to change employers.

  • Yahoo! Finance User - Friday, March 16, 2007, 12:49PM ET  Report Abuse

    • Overall: 4/5

    Changing rolls/positions/companies can help somewhat provided you can actually do the job and do it well. The easiest way to get a big raise is to educate yourself into a position that the company perceives to be of more value. (Key words there being Company and Perceives). If YOU perceive yourself as earning more, ask yourself what needs to change for the company to feel that way also! Make your boss look like a star even or especially if he is not - Upper Management will eventually figure out who the real performer is.

  • TechMech - Friday, March 16, 2007, 12:43PM ET  Report Abuse

    • Overall: 5/5

    More employees should see this! I am amazed at the amount of employees I meet that think they are God's gift to their bosses. Making yourself indespensible to your company or customer is key. "I don't get paid to do that" is the worst rut anyone can get stuck in. Realizing that 'if you try to please everyone all the time, you will fail' is good ,too. Sometimes the best raise you can get IS obtained by finding another employer.

  • Yahoo! Finance User - Friday, March 16, 2007, 12:38PM ET  Report Abuse

    • Overall: 1/5

    This all sounds good,but the only thing that really works is to tell you boss how great he is...understand. Trust me, he'll believe it.

  • whiteboy - Friday, March 16, 2007, 12:34PM ET  Report Abuse

    • Overall: 4/5

    Getting a raise and moving up in a company can be very simple...or difficult, depending on YOUR actions. This article gives a good outline of one of many ways to do so. If you are at a job, just to do it and pay bills, your heart is in the wrong place...if you have goals, and ambition, not only will you find moving up the food chain easy, ..you will also find that everyone that is doing the same has either played the "game" well or really KNOWS the job and is infact indespensible. Keep your head up, learn your job and you'll find that the more you put into work, the more you get out.

  • StaceyF - Friday, March 16, 2007, 12:31PM ET  Report Abuse

    • Overall: 2/5

    As all of these steps sound good to the employee, they may not to the employer. I followed these steps when asking for a salary increase. At the end of the conversation, things appeared to have gone good and they were going to see what possibilities there were and get back to me. The next day, I went into work, and found myself out of a job. So, watch what you ask for, and make sure it's worth it!

Showing comments 6-35 of 120<< PreviousNext >>
The columns, articles, message board posts and any other features provided on Yahoo! Finance are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Yahoo! and there is no implied endorsement by Yahoo! of any advice or trading strategy.

Recent Articles by Jim Citrin

View all articles from Jim Citrin

More from Jim Citrin

The Dynamic Path

The Dynamic Path is a framework to live by if you aspire to reach your greatest potential in sports, business, public service, and life in general.

Based on three years of research and candid interviews with many of the world's most inspiring athletes and leaders, The Dynamic Path shows you how to develop the mind of a champion, avoid the "perilous perch," and build an enduring legacy, among many other personal transformations.

Order your copy today.

View more about Jim Citrin

More from Yahoo! Sources

  • CNN Money
  • Consumer Reports
  • Kiplinger
  • The Motley Fool
  • Business Week
  • Wall Street Journal

Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Morningstar, Inc. Fundamental company data provided by Capital IQ. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.

Yahoo! Answers is provided for informational purposes only, and no Q&A is intended for trading or investing purposes. Yahoo! shall not be responsible or liable for the accuracy, usefulness or availability of any Q&A information, and shall not be responsible or liable for any trading or investment decisions based on such information. View Complete Answers Disclaimer.