Up next on MaltaCEOs.mt’s Work and Wealth Watch series, where money coach Luca Caruana gives his expert responses to all your questions related to money, work and wealth, we explore the difficulties of approaching a manager to ask for a well-earned raise.
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Dear Luca,
I am writing to seek your advice on the best way to approach my employer about a raise. I am currently a Senior Manager at a pharmaceutical company and have been with the firm for four years. Despite my consistent efforts and dedication, I have never received a raise, nor have I ever asked for one. I had always believed that my hard work and the roles within the company designed to monitor and reward such efforts would naturally lead to a raise. However, this has not been the case.
My situation is becoming increasingly frustrating, especially with the recent birth of my son. I have a family to support, and the lack of recognition in terms of financial reward is making it difficult for me to stay motivated. I truly believe that my contributions to the company merit a raise, yet the prospect of asking for one makes me uncomfortable.
Is it normal to feel this way about asking for a raise? How should I approach this situation effectively to ensure my efforts are acknowledged and fairly compensated?
Thank you for your guidance.
Overlooked Professional
Luca Responds
Dear Overlooked Professional,
You may not like this, but despite the widespread notion that many companies reward good performance with salary raises, my experience suggests otherwise. With few exceptions, most companies do not automatically offer significant raises; those that do often provide only modest increases, just enough to keep employees minimally satisfied.
Therefore, you must overcome your discomfort and take the initiative yourself. You must be your own advocate because if you don’t speak up, no one will do it for you. After four years without a raise, it is unlikely to happen on its own.
However, don’t just approach your manager and ask for a raise impulsively. Plan your strategy carefully. Consider the following steps:
1) Evaluate your contribution: What value are you bringing to the firm?
2) Conduct market research: Find out what other companies are paying for your role. You can gather this information by networking or consulting with a recruitment agency that has access to industry salary data.
Armed with this information, approach your manager.
Imagine you discover you are underpaid by €15,000 compared to the market average. It may be challenging for your manager to provide this amount immediately.
A practical strategy is to negotiate this increase over the next 2-3 years. This approach allows you to receive the raise you deserve while giving your boss time to adjust the budget accordingly – a win-win situation.
Do not hesitate to make your case – no one will think any less of you. Advocating for yourself is now a common practice, and those who fail to do so are often left behind.
Best of luck,
Luca,
The Money Coach, from the Money Coaching Hub
CEO & Founder of Monipal
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