Knowing how to ask for a raise can be a daunting task for many employees, but it can also be a necessary step in advancing one’s career and financial stability.
If you believe you’re underpaid, you only have three choices: ask for a raise, find another job, or accept that you’re not making the salary you deserve. Regardless of what choice you make, you’re going to be tackling new anxieties.
Being prepared is an important first step. There are both pros and cons to consider before making the decision to ask for a raise:
Asking for a Raise
Pros
- You might get a higher salary without having to change jobs: The obvious benefit of asking for a raise is the potential increase in income. A recent Indeed survey showed that only 19% of people were comfortable with their rate of pay. Which means that most people believe they are underpaid. A successful negotiation could result in a higher salary without navigating the learning curve of a new role.
- You can maintain your existing work relationships and job security: This is an opportunity for employees to demonstrate their value and contributions to the company. A successful negotiation can show you that you’re appreciated and recognized for the hard work and dedication you’ve contributed
- You don’t have to spend time and effort searching for a new job: The stats aren’t in your favor. In 2023, it takes about 3-6 months from start to finish to get a job. It’s a tough market, so when a recruiter isn’t knocking, it can be difficult to get your foot in the door.
- You can negotiate other benefits besides salary, such as flexible work hours or additional vacation days: Beyond salary, remember that your benefits package is on the table for discussion.
Cons
- Your employer may refuse your request or offer a lower increase than you expected: One word, rejection. If the employer is not willing or able to provide a raise, it can be demotivating and lead to feelings of frustration and disappointment. It’s important to be prepared for this possibility and have a plan in place for how to move forward.
- You might not receive a raise if your company is going through financial difficulties: What is the financial health of your organization? If it’s not going well, it’s unlikely that you’re going to be handed a raise.
- You may risk damaging your relationship with your boss or colleagues if your request is not handled professionally: As far as etiquette goes, here are four things you should NEVER do during a salary discussion.
- Threaten to quit
- Mention your co-worker’s salary
- Bring up personal issues that incentivized your request
- Ask out of the blue without a scheduled appointment
- Even if you get a raise, it may not be enough to meet your financial need: Pay raises are typically significantly smaller than the pay bumps you get from a new job. Always keep that in mind. If you’ve been working at your company for over a decade, you are likely not meeting the average market value of your competition.
Potential risks
When people get anxious about requesting a pay bump, they’re usually concerned that…
- Your employer may not appreciate your request.
- You may be seen as someone who is not satisfied with their current job and is looking for a way out.
- Your colleagues may become resentful if they perceive that you’re getting preferential treatment.
Getting a New Job
Pros
- You can potentially earn a higher salary than your current job: Of course, you would have a higher salary with a raise, but a new job usually surpasses the typical 10% raise your organization offers. One of the main advantages of getting a new job is fresh potential. Higher starting salaries attract top talent, and employees are able to negotiate a higher salary during the hiring process.
- You can explore new opportunities for career growth and professional development: This is a fresh start. A new job can also mean new opportunities for career growth and development. Employees may be able to take on new responsibilities, work on different projects, and learn new skills that can benefit their long-term career prospects.
- You can work in a new environment: Starting a new job can also provide a fresh start and a chance to leave behind any negative experiences or challenges at a previous job. This is beneficial for one’s mental health and overall job satisfaction.
- You may have a better work-life balance or work on projects that align with your interests: If you’re employed and looking for a new job, you hold the power. You can take your time and find a job that perfectly aligns with your career goals and aspirations.
Cons
- You may have to go through a lengthy job search process, which can be time-consuming and stressful: Just as mentioned earlier. The job process can be exhaustive. If you’re applying on your own without the help of a recruiter, the process can take months.
- You may have to adapt to a new work environment, which can be challenging: One of the biggest risks of getting a new job is the unknown. There is always a chance that the new job may not meet expectations or may not be a good fit for your skills and interests. It’s obvious, but you don’t know what you haven’t experienced.
- You may have to sacrifice job security and relationships with your current colleagues: Starting a new job can also mean a period of instability and adjustment. You may need to adapt to a new work environment, new colleagues, and new expectations, which can be stressful and overwhelming.
- You may not get the same level of benefits or perks that you had in your previous job: Leaving a current job means potentially losing benefits such as health insurance, paid time off, and retirement benefits. This can be a significant financial burden depending on individual circumstances.
Potential risks
It’s hard to know what you’re getting into with a new job. It could be the most fantastic opportunity. Or…
- You may not like your new job or company culture as much as you thought you would.
- You may realize you made the wrong decision after leaving your previous job.
- You may have to quit your new job if it doesn’t meet your expectations, which may hurt your job search in the future.
Overall, the decision to ask for a raise or get a new job depends on your personal and professional goals. It’s important to consider all the pros, cons, and potential risks before making a decision. With the right approach and preparation, asking for a raise can be a positive step toward career advancement and financial stability.