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Talking about money issues is always tough, and it’s especially challenging when you’re asking for a raise.
Employees are worried about coming across as greedy or unappreciative, while employers are focused on maintaining a tight budget. So how do you have this conversation without making things awkward?
The value of a salary is in the eye of the beholder, but there are some general guidelines you can follow to ensure you’re making a reasonable request. For starters, it’s essential to keep your expectations realistic. The average raise is estimated to be 3 to 8 percent, so asking for double that could be seen as excessive.
How much is too much to ask for a raise? Hopefully, this blog post will give you a little guidance on the subject.
Why The Size Of The Raise You Ask For Is Important
The size of the raise you ask for highly determines whether you get a raise at all.
If you ask for too much, your employer may not be able to justify giving you a raise. And, if you ask for too little, you may end up leaving money on the table. So, when you’re asking for a raise, it’s important to keep your request within the realm of what’s reasonable.
A survey of 2,000 employers found that 38 percent of employers said they were likely to give a raise to an employee who asked. It also highlighted that the average amount of the raise was 4.3 – 5 percent.
Ultimately, asking for a raise that’s in line with the industry average is more likely to result in a positive outcome than asking for too little or too much.
There are several reasons why the size of the raise you ask for is important:
- It can impact your negotiating position
- It can influence your employer’s perception of you
- It can set the tone for future raises
- It can determine whether or not you get a raise
- It can affect your relationship with your employer
Keep these things in mind the next time you’re considering how much to ask for a raise.
Is a 20% Raise Too Much To Ask For?
Before asking for a raise, do your research to find out the average salary for your position in your industry and region. This will give you an estimate of what you should be earning.
This brings us to the question,” is a 20% raise too much to ask for?”
In some cases, a 20% raise may be too much to ask for. If you’re already making a good salary and your job duties haven’t changed significantly, it’s unlikely that you’ll be able to justify such a significant pay increase.
Generally, it’s inappropriate to ask for a raise that’s more than the average acceptable salary increase.
However, if you’ve been with the company for several years and have taken on additional responsibilities, a 20% raise may be appropriate.
A recent analysis of salary data suggested that anything between 10% to 20% of what you currently earn is reasonable, especially if you have been performing well and have received positive feedback from your employer.
Requesting a 20% raise is a big ask, and you should only do it if you feel confident that you can justify it. If you’re unsure whether or not a 20% raise is too much to ask for, try asking for a smaller amount first and then negotiating up from there.
How Much Is Too Much Of A Raise To Ask For?
Well, this is a loaded question, and the answer really depends on the situation. You never want to lowball yourself, but you also don’t want to make too outrageous of a request and get rejected.
Imagine an experienced software engineer currently making $100,000/year at your job. He/she has been with the company for 4 years and has gotten great performance reviews. They may have a shot at asking for $120,000/year and getting it. But if they ask for $200,000/year, they may be laughed out of the room. How much is too much then?
You should do your homework and determine the market value for your position. This will help you better understand what range you should be asking for.
At the end of the day, there is no right or wrong answer to this question. How much you should ask for depends on your unique circumstances. Just make sure you are armed with the right information and go into it with confidence!
How Little Is Too Little Of a Raise To Ask For?
When it comes to asking for a raise, is there such a thing as too little?
The short answer is yes!
You’re probably thinking, “I’ll take whatever I can get”. This is the wrong way to approach a salary raise! If you’re already underpaid, asking for a tiny raise isn’t going to do much to help your financial situation. So how little is too little of a raise to ask for?
Generally, you should aim for a raise that is at least 5% of your current salary. So, if you’re making $50,000/year, a 5% raise will give you an extra $2,500. That may not sound like a lot, but it can add up over time.
Of course, there are a few exceptions to this rule. For instance, if you’re in a high-paying field such as investment banking, you may be able to get away with asking for a smaller raise. But typically, you should be looking for a raise that is at least 5% of your current salary.
How Much Of A Raise Should You Ask For?
How do you know if you’re asking for too little or too much?
The answer to this question really depends on factors such as your current wage, presence responsibilities, added duties, etc. It would help if you started by looking at the market value for your position and then base your request on that. You could even start by using a salary calculator to get an idea of what you should be making.
From there, you can start to formulate a range that you feel is appropriate. A recent survey in America found that the average salary increase request was between 3 – 10%. However, the study also found that the most common request was for a 4% raise.
So, what’s the right number? There are several factors that come into play; let’s have a look at some of them!
What Factors Should You Consider When Determining How Much Of A Raise You Should Ask For?
Chances are that you’re basing your raise on the extra money you need or want. But there are other factors to consider as well, such as:
How long it has been since you’ve had a raise
If you just had a raise, it’s probably not appropriate to ask for another one so soon. This can give the impression that you’re greedy or not happy with your current salary.
On the other hand, if it has been a few years since you’ve had a raise, you may be able to ask for a larger increase. The average time frame for asking for a raise is roughly six months to a year, depending on your company’s policy.
How much your responsibilities have increased
If you have taken on additional responsibility at work, you may be able to ask for a raise. This is especially true if you can demonstrate how your additional responsibilities have positively affected the company.
Additional responsibilities include taking on a leadership role, working additional hours, or increasing your productivity. Most employers are willing to give you a raise if you can show that you are worth more to the company.
How much your performance has increased
If you have been consistently outperforming your peers, you should ask for a raise. This is especially true if you can show that you have been meeting or exceeding your goals.
However, if your performance has been average or below average, asking for a raise might backfire on you.
What the company can afford to pay you
If the company is struggling financially, you may want to ask for a smaller raise. You don’t want to look insensitive by asking for a large raise when other people are struggling.
On the other hand, if the economic state of your company is impressive, you could ask for a larger raise. Chances are that your boss will also be happy to listen to your request.
The value you add to the company
If you feel that you are worth more to the company than your current salary, you should ask for a raise. This is especially true if you can demonstrate how your skills and abilities have positively affected the company.
No employer wants to lose a valuable employee, so they may be willing to give you a raise to keep you happy.
The market value for your position
If you are making significantly less than the average salary for your position, you should ask for a raise. Keep in mind that when your boss is considering your request, they will likely compare your salary to the market value.
Is It Time to Ask For A Raise?
When considering the appropriate amount to ask for a raise, it’s important to be realistic. Do you deserve the salary increase? Why should your boss approve your request? What are your strong negotiation points?
A good rule of thumb is to ask for a raise that is commensurate with your skills, abilities, and experience. However, keep in mind that the final decision is up to your boss. They may give you a raise that is less than what you asked for, or they may not give you a raise at all. It’s all dependent on how you package your request and other factors such as the financial state of the company.
Hopefully, the above tips will help you decide how much to ask for and increase your chances of getting a salary increase.
If you don’t end up getting the raise you want, read this post next: What to Do When You Don’t Get a Raise [5 Actions To Take]
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