Pay Raises: When The Timing Is Right

Employees don’t ask for and employers don’t grant pay raises very often. Unless something changes in both their thinking, the status quo trumps pay increases. However there are times when employees start thinking about their income, salary, and hourly wages and how to increase them. Subsequently, there are times when employers believe that pay increases (beyond the standard 2%) are sound business strategies. When any of the following events occur paychecks are affected.

Employees ask for pay raises when:

1. They learn that colleagues doing the same work are paid more and a general sense of unfairness surfaces in their conscious thinking.
2. They feel their work is outstanding and suddenly realize they are not getting pocket book credit for their efforts.
3. There has been a life challenge such as a divorce, health scare, or a sudden death in the family and their financial well being is threatened.

Employers grant pay raises when:

1. They determine salaries and job titles/duties don’t match. They uncover an instance (brought to their attention by an employee) when a person is truly underpaid given the level of responsibility, skill, effort, and problem-solving undertaken in their jobs.
2. Downsizing is necessary and the remaining employees (after layoffs) are now burdened with more work and responsibility. Better to increase the pay of the remaining crew in order to stay in business. This can be tricky endeavor but not impossible.
3. They learn their employee pay, as a whole, is not in line with external market forces. They learn colleagues in the marketplace, who are competing for the same labor, are paying their employees more for doing similar work. They must re-align their pay to match pressure from outside forces.

If any of these shifts have occurred in your life or at your company and you have yet to see the changes in your paycheck, consider asking for a pay raise that aligns your needs with the company’s success.

Click here to set up a time for an income boost strategy session with Patty Tanji, Pay Raise/Compensation/Pricing strategist. You will get crystal clear on a vision for your income, learn what’s holding you back from reaching your earning potential, and walk away with action steps to move you toward your vision.