It’s the most wonderful time of the year! No, not Halloween; performance reviews! What? You don’t like performance reviews? I get it, but instead of thinking of it as your manager’s opportunity to remind you how far short of the company’s expectations you fell, turn the spotlight on how valuable you are. Employees have more leverage than ever to get both a promotion and a raise. You’ll probably have to ask for both, but how?
Justify
Your company pays you for the profitability you bring, not for your personal circumstances. Don’t base your case for a pay increase on the amount of your bills. Build it on your accomplishments that helped the company achieve its mission. The easiest way to do this is to keep a folder on your desktop with a collection of evidence proving your worth. It’s not only helpful for performance reviews, it boosts your confidence all year long. The folder can include:
- Emails thanking you for a job well done
- A link to the recommendation section of your LinkedIn profile. You ask people for LinkedIn recommendations, right? If not, do; and offer to give one in return
- Notes on your Top 20 List of Achievements. Include:
- Projects you led that moved the company closer to its goals
- Revenue you brought in
- Savings you attained
- New clients you acquired (and their worth)
- Initiatives you originated and their positive financial impact
This is a job interview. It requires rehearsal. Ask someone to role play with you. After summarizing your Top 20 List of Achievements, encourage your practice partner to ask you hard follow-up questions. Frame all your answers around why your company would benefit by promoting you. Here are a few questions to help you hear your pitch out loud then get their feedback:
- How will advancing your career positively affect the company?
- What projects/initiatives/clients will this new role allow you to obtain?
- Who in the company has to invest their time, energy, and attention in you so that you will be successful in the new role?
Specify
Now that you know and can demonstrate your worth, you have to respectfully communicate that you expect to be recognized and compensated for it. If your manager asks how much money you expect to make, ask them what their budget is. This can prevent you from not asking for enough. Whether or not they offer a number, enter the conversation with a salary range in mind and ask for the top. If the salary range for the position you want is public information within the company, then it’s easy to find. If you have to dig for it, is there someone who held that position whom you can ask? If not, research other job descriptions with the title you want as the keywords. What is the current salary for someone with your level of education, experience, and track record who lives in your city? Bring these statistics with you. They provide credibility of your value in the talent pool.
Clarify
If the company can’t afford to give you more money, but still wants to give you more responsibility, then think carefully before deciding. A performance review is a negotiation. Don’t think of their answer as a no. Think of it as a not yet. You can negotiate for compensation other than money right now and revisit the salary conversation later. For example, will they:
- give you a better title?
- approve working remotely two days a week?
- assign you to lead more high-visibility projects?
- reimburse you for leadership development training?
If you can reach a compromise, then get in writing exactly what your additional duties will be, the compensation you will receive for them, and for how long. Request to revisit the pay increase discussion in six months. Schedule that meeting before the conversation ends. Make sure it’s noted on your manager’s calendar and in your personnel file. The two of you are not the only people looking at your performance review. HR (at least!) is too. Make sure as many people as is appropriate know this conversation is not over.
Asking for a raise is not about what you want. It’s about what your performance has earned. You uniquely contribute to your organization and they benefit from your work, your influence, and your networks.
Is this how you prepare for a performance review? What did I forget? Please share in the comments.