Costs are up, your salary is not. Here’s how to ask for a raise if it’s long overdue

Grocery prices are skyrocketing. Inflation is at a 30-year high. Interest rate hikes are on the horizon. And the housing market shows no signs of cooling.

And yet your salary has not changed – maybe even in years.

Canadians are noticing their dollar isn’t stretching as far these days, and wondering when their pay will catch up.

At the same time, a tight labor market means companies are doing more, such as raising wages on new job postings, to try to attract and retain talent.

Some experts say now is an opportune time to try to negotiate a higher salary.

But it’s not as simple as asking for more money.

Yiorgos Boudouris, a career coach and head of talent at Forma.ai, said in many industries it’s a good time to look for a higher-paying job or ask for a raise, because competition is stiff, particularly in sectors with apparent worker shortages, and wages are rising to attract qualified workers.

As well, more US companies are hiring remotely in Canada, he said, adding to the competition.

Social media has also provided more transparency about pay; thanks to websites like Glassdoor or forums like Reddit, it’s easier to figure out what your peers are making.

“Folks are actually sharing the details about their compensation,” he said.

But labor market conditions and inflation aren’t enough of an argument when you’re asking for a pay bump, said Boudouris.

You should focus instead on listing everything you’ve achieved at your organization to earn a raise, and plan out what you’re asking for – not only a salary range, but multiple options you would settle for, taking into consideration benefits and perks as well as cash.

“You should be prepared with an inventory of items that you’ve accomplished,” he said.

That does not mean you can not mention the job market and refer to relevant job postings, said Boudouris. If you hear from recruiters, keep track of what they’re offering, he added.

You should also consider whether your company is in a financial position to provide a raise, he noted, and time your ask accordingly.

Career and salary negotiation coach Kathryn Meisner said a performance review is usually a good time to ask for a raise, but you should also be looking at whether your role has changed since the pandemic.

If you’ve been taking on more responsibility, that can be a good argument for a higher salary, she said.

Maybe, however, the solution to higher earnings is to simply look for a better-paying job.

“I like to remind people that the biggest jump in compensation you’re going to get is probably through negotiating a job offer, because when you negotiate a raise, your employer knows what you were making before,” she said.

You might get a decent raise at your current organization, she said, but without a significant promotion, you will not see anywhere as big an increase as you could get from a new job with another company.

“I think people are scared because there’s a lot of change involved with switching jobs. And if you decide that that does not work for you at this point, that’s OK, too, ”said Meisner.

Using a competing job offer to get a raise is a controversial tactic, said Boudouris. It can certainly work, but it can also backfire.

It could cause resentment, agreed Meisner, affecting your relationship with your manager, or make your company think you’re looking to leave.

“You’ll have to think about your specific manager and team and employer situation. What would it be like if they say no, and you end up staying? ” she said.

Boudouris recommends asking for a raise first, within your company’s performance review cycle if possible, and treating the competing job-offer tactic as Plan B.

Having another job offer can build your confidence, he noted, but it means you’re not having a discussion with your employer anymore – you’re essentially giving them an ultimatum, and you have to be prepared for them to say no.

Are you going to stay in your role, or actually accept the offer?

“Transparency, I do think, is more evident than it has ever been, so you can find out what a company is offering and what a potential offer would look like way earlier,” he said. “I would almost recommend doing that instead.”

If you know anyone at your organization who has successfully negotiated a raise, do not hesitate to ask them about the process, said Meisner.

You should also be prepared for more than one conversation, and to follow up after your first ask, she added.

“You may have to be the one to initiate the conversation, especially if it’s in the context of a performance review.”

If you’re in a unionized workplace, you should have a good understanding of your collective agreement and use it to build your business case for why you should get a raise, said Boudouris.

Boudouris noted that workers from equity-seeking groups, such as racialized workers, may find it more difficult to advocate for themselves and their pay.

It’s important to talk to your peers about salaries, he said, and track the metrics of your success at work so you’re confidently prepared with proof of your value to the company.

Meisner agreed.

“It is easier for people with more privilege and power. Like a white man is going to have a much easier time negotiating and it will be more acceptable and expected for them to negotiate, than for a woman of color, ”she said.

But it’s important to acknowledge that those systemic barriers exist, said Meisner, because it may help you contextualize your experience and figure out how to navigate difficulties you might encounter.

There are organizations dedicated to closing the pay gap for under-represented groups, such as 81cents, said Boudouris, which helps connect workers with experts, build an action plan and learn negotiation tactics.

Overall, it’s important to be prepared when asking for a raise – not just for the initial conversation, but for the months that might follow. If it does not work, you have to decide whether to look for another opportunity or seek ways to move up within your current organization.

Meisner recommends checking in with your manager on a regular basis and getting to know what their own goals are, so that you can communicate your accomplishments and focus on what helps the whole team.

“Ideally, you’re talking to your manager and communicating your wins on an ongoing basis… so that they can claim that as part of the team that they’re leading,” she said.