“I’m sorry. I wish I could give you a raise, but our budget is frozen until the end of the year.” Sound familiar? This is a typical canned response many receive when asking for a raise.
It’s a good idea to have a strategy in place when asking for a raise at work, or when negotiating salary with a potential employer. Keep in mind, your financial salary only represents part of your overall compensation. Employers may not be willing to make adjustments in base pay, but you may be able to negotiate other benefits to make up the difference. Possible strategies to consider include:
Know the Market - Research salaries for your position and responsibilities with other employers in your area. This will give you a general idea of whether your salary is reasonable.
Healthcare Insurance – If you’re already covered by your spouse’s healthcare insurance, consider asking for a higher salary in lieu of the medical insurance benefit.
Retirement Plan or Pension – Seek out an employer who will match your 401(k) contributions.
6-Month Performance Review –Consider negotiating a semi-annual review schedule. Assuming your semi-annual raise would be half your annual raise, you would come out ahead in the long run. Also, getting a raise twice a year may feel more rewarding, and could increase your enthusiasm and productivity in the workplace.
Flexible Schedule –If flexibility in your wok schedule is important to you, ask about coming in and leaving early in order to meet family obligations. Or, consider requesting a schedule of 4 ten-hour days, or perhaps you can telecommute one or more days per week.
Paid Time Off - Negotiating additional vacation time can help narrow the pay gap if you consider your salary to be on the low side.
Transportation Reimbursement –Calculate your monthly commuting expenses (fuel, tolls and parking). Perhaps you can arrange for a stipend to help ease this expense.
Overnight Accommodations – From time to time you may find yourself putting in 14 hour days and/or late nights at the office, Maybe you can get your boss to pick up the tab if you stay overnight at a hotel.
Daycare Reimbursement – Childcare costs can be a killer to your paycheck. Is there an onsite child center or perhaps an allotted daycare stipend for workers with young children?
Tuition Reimbursement – From workshops to seminars, conferences, classes to even paying for your Master’s degree, you can ask your employer to help continue your education and foot the bill. Many companies view this as a direct investment back into the company and are willing to contribute in this area.
A Wardrobe Allowance – Consider petitioning for a clothing stipend to be built into your agreement – especially if you’re in the position of meeting with lots of high-end or influential clients. After all, your employer will want you to look your best since you will be representing them.
By Wendy Ann Payne
Founding Partner & Wealth Management Advisor
Centurion Wealth Management
This content is for educational purposes only.
Investment Advisor Representative of Spire Wealth Management, LLC. Advisory Services offered through Spire Wealth Management, LLC, a Federally Registered Investment Advisor. Securities offered through an affiliate, Spire Securities, LLC, Member FINRA/SIPC.
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