Here’s a familiar scenario: You’ve been at your job for awhile. You do good work. You’ve gotten a raise in previous years. There should be no reason why you wouldn’t get the same kind of raise this year. Right?
Not necessarily. In fact, many employees are blindsided when they realize that just because they expect a raise doesn’t mean they’ll get one. While the reasons are many, often the reason is financial — the company doesn’t have the funds to give you the raise you think you deserve.
If you’re in this situation, don’t fret. It’s time to start thinking a bit more creatively.
1. Rethink your approach.
Most people don’t think to tie their raise request to their value to the business. They treat raises as a matter of expectation (“I deserve this raise because I deserve this raise”). Framing it that way puts you at odds with the company. Your best bet is to tie what you’re doing to the company’s most critical metrics. If you are meaningfully driving one of those metrics, an employer is going to do whatever they can to pay you more because there’s so much value for them on the backend.
From an employee perspective, the negotiation should sound something like this: “Can we agree that these are the company’s most important goals, and that if i can help deliver upon these goals in this time frame, then it warrants X raise?” If you can frame it that way, not only does it give you leverage, but it puts you in a situation where your employer feels like they’ve won something as well.
Also — don’t forget to use sites like Comparably to help you figure out what people like you are earning at companies like yours.
Related: Just Half of Women Feel They Are Paid Fairly
2. Think long-term and show empathy.
If you’re more empathetic to the company’s needs, you’re going to have a better chance of achieving your goals. Say you’re working at an 8-person startup that’s raised $500,000. You may be underpaid versus the market, but the company may not be in a financial position to pay you your market value. Instead of trying to negotiate a salary increase immediately, say to your employer: “I know I’m not in a position to get a raise right now because the company doesn’t have money, but if and when the company raises $1 million more, can we agree to raise my salary to X?” You may not be able to get what you want in the short term, but by being empathetic to the company’s needs, you may be able to get what you want in the long-term.
3. Negotiate a bonus instead.
Employers know that salaries are going to get out, no matter how much they try and keep them a secret. That’s why they’re often reluctant to raise a person’s base salary — they don’t want to create inequity in the workplace.
When it comes to bonuses, however, employers tend to have more flexibility. When joining any company, ask for a signing bonus — the company may not be able to pay you the $200,000 you were hoping for, but they may be able to pay you $120,000 with an $80,000 signing bonus.
The same goes for anyone whose performance warrants an increase: even if you can’t get a consistent ongoing salary increase, you may be able to negotiate a one-time bonus.
Related: How to Ask for a Raise
4. Don’t make your raise all about compensation.
There are going to be times when a company can’t or won’t give you more cash, but that doesn’t mean you can’t get other benefits. Consider asking for more equity, more vacation time, new responsibilities, more desirable work hours, or the ability to work remotely. Be fluid in your negotiations.
5. Keep your eye on the bigger picture.
One of the biggest mistakes people make is that they look for the opportunity that will pay them the most now instead of the opportunity that will help them earn more later. When you’re 23 years old, whether you get paid $42,000 or $46,000 isn’t going to make a meaningful difference over the course of your life. The average person works for 40 years, and doesn’t typically hit their highest earning potential until they’re in their late 30s to early 50s. Bottom line: don’t get blindsided in the short-term about making the absolute highest compensation if it’s taking away from opportunities that can position you for long-term success.
Also remember that if you manage to negotiate an outsized salary, you risk being first on the chopping block if the company needs to cut costs.
