Apart from salary negotiations during an interview, asking for a raise in sales may be one of the most difficult things that you would do during your career. Considering this, it’s always better to be prepared.
Don’t get us wrong, if you believe you’re worth it and that you should be paid more, it’s definitely worth it to ask. But how do you go about asking for a raise in sales?
In this post, we’ll look at this question in more detail and give you a few tips you can use the next time you ask for a raise. Let’s get started!
What To Consider First?
Before you go any further in the process, the first thing you should consider is whether you actually qualify for a raise based on your company’s compensation policies. Here, you’ll have to make sure that the company’s compensation plan makes provision for raises and that its employees’ salaries are not set by job title.
In the wake of Covid, many organizations are in a tough spot financially and falling behind in their revenue models. This will create a difficult but not impossible environment for continued pay growth.
Are You Ready for a Raise?
You might think that you’re always ready for a raise but the question here is whether the company thinks you’re ready for a raise. So, in other words, you should ask yourself if you’ve performed well enough to deserve a raise.
This means that, if you’ve been in your position for a while and you’ve constantly reached your sales target, it might be the right time to ask for a raise. In this scenario, you’ve demonstrated that you have the skillset to achieve more than what the company requires of you. What could further help you here is to keep track of your accomplishments and you’ll want to include specific details on the biggest deals you’ve closed, lifetime customer value, and any other critical data that show that you generate revenue for the company. In this way you demonstrate that you provide value to the company.
In contrast, if you haven’t been with the company for that long and you’ve just performed well for a few months, you haven’t demonstrated your ability to consistently hit your sales targets. in this scenario, asking for a raise might not be the best option.
If you haven’t been making your targets, then it’s obvious that you shouldn’t ask for a raise.
Asking For A Promotion or Raise?
Asking for a promotion is similar to asking for a raise in sales. As is the case with asking for a raise, you’ll have to consider many of the same things when asking for a promotion.
This means that you should feel that you’ve earned the right to ask for what you want, your employer should feel that you’ve earned the right to ask for the promotion, and you should be ready to present your case why you’d would qualify for the promotion.
Although a promotion typically comes with an increase in salary, there is a difference between the two, with a raise typically focusing on pecuniary benefits, while a promotion focuses on career growth.
Ultimately, the decision between asking for a promotion or a raise depends on what your situation is and what your goals are.
How To Ask for the Raise
The ideal is to ask for a raise in person and in private. So, if you’ve done all your research and you believe that you qualify for a raise, you should schedule a meeting with your manager.
It also may be quite possible that you have a performance review coming up where you’ll be able to discuss a raise. If not, it’s better to schedule the meeting at least two weeks in advance and to let your manager are know that you plan to discuss your salary during this meeting.
Before the meeting happens, you should prepare what you’re going to say to convince your manager that you qualify for a raise. You should also prepare what other information you’ll use to substantiate your view and request.
Once you know what you’re going to say you’ll have to rehearse this. This will serve you well on the day of the meeting and will help to keep nervousness and fear at bay. Remember, these feelings are natural, so you should do anything you can to manage them.
In the meeting, you’ll begin your conversation with your manager by stating the purpose of the meeting. If your manager is then open to the conversation from there, you can follow up with what you prepared to convince them that you qualify for a raise. You could for instance use your sales figures, how many big deals you closed, or any other information that can substantiate your request for a raise.
You should also be ready for some questions from your manager and that there will be some negotiation during the process. If all goes well, your manager will give due consideration to your request and you’ll probably get your raise.
What Happens If They Say No?
If it’s not a good time for a raise, don’t fall into the trap of becoming bitter and letting your sales results slip. Thank your manager for the opportunity and their time, and also ask when you can revisit the issue of a raise.
Remember, although it may be disheartening, other opportunities will arise in future and the key is that you did your best. By keeping your performance up after the meeting, you only strengthen your case for the next occasion.
If that next occasion needs to come externally to see that next pay bump, you’ll want to be able to demonstrate you can work through business challenges in a professional way.
Asking for a raise can be a harrowing experience. But if you believe you’ve earned it and you take the necessary steps and do the preparation, you can make the process a lot easier and less stressful.
Despite your preparation and your belief that you qualify for a raise, it still may happen that your request gets turned down. Keep in mind, though, that if you keep performing at your best that raise will come sooner rather than later.
For current Uvaro students and to all of our graduates, if you are thinking of asking for a raise, connect with your career coach on a plan of action! This is a conversation that can be made easier with a bit of guidance and we’re happy to help.