How Much of a Raise Should I Ask For?

So, you're thinking about asking for a raise. First of all, congratulations! Recognizing your worth and feeling confident enough to ask for a bump in pay is a big deal. But let's be honest—I know it's easier said than done.

I remember the first time I tried asking for a raise. My hands were sweating, my heart was racing, and I was sure I'd turn into a human version of a nervous emoji. But guess what? I did it. And I learned a lot along the way. Spoiler alert: It wasn't as scary as I thought, and it didn't involve begging or pleading (thankfully!).

In this blog, I'll discuss the key factors that can help you set a realistic raise amount and the best times to make your move. From industry standards to company financials, we've got it all covered so you can ask confidently.

10 Tips To Get Your Desired Pay Raise

1. Do Your Research—

Use salary comparison tools to justify your request. Before you ask for a raise, use tools like Glassdoor, Payscale, or LinkedIn Salary to check industry standards for your role. Compare salaries based on your experience and location to determine what's reasonable and back up your request with data.

2. Time It Right—

Ask after big wins or performance reviews. Timing matters. Ask for a raise after a big achievement, such as hitting targets or completing a major project, or during your performance review when your contributions are fresh in their minds.

3. Know Your Worth –

Showcase measurable impact on company success. Point to specific results you've delivered, such as increased sales or process improvements. Use metrics and outcomes to show how you've helped the company grow and why you deserve a raise.

4. Practice Your Pitch –

Be confident and rehearse your request. Rehearse your conversation ahead of time so you can speak clearly and confidently. Know your numbers and have a smooth, direct pitch to keep the conversation focused.

5. Frame It as a Business Case –

Focus on how your raise benefits the company. Make your raise request about what's best for the company. Show how your contributions align with business goals and how your increased compensation will continue driving success.

6. Be Prepared for Pushback –

Have a backup plan (bonuses, benefits). If the company isn't ready to give you a salary bump, prepare for a "no" and suggest other alternatives, such as bonuses, extra time off, or a clear roadmap for future raises.

7. Keep It Professional –

Avoid personal financial reasons in your argument. Focus on your professional contributions rather than individual needs like paying bills. Keep the conversation about your performance and market value to keep it professional.

8. Be Specific About Your Request –

Ask for a clear percentage or amount. Be clear about the raise you're asking for, whether it's a percentage (like 10%) or a specific figure. A precise request shows that you've done your homework and are serious.

9. Follow Up If Necessary –

If denied, ask for feedback and revisit in 3-6 months. If your raise request is declined, ask for feedback on areas you can improve. Set a follow-up date to revisit the conversation in a few months and show progress on your goals.

10. Be Ready to Walk Away If Needed –

If underpaid long-term, consider other offers. If your company consistently undervalues you despite your contributions, consider looking for better opportunities. Stay open to other job offers that match your worth.

When To Ask For a Raise?

1. After a Major Achievement or Successful Project

There's no better time to ask for a raise than after you've delivered exceptional results. Whether it's hitting or exceeding your targets, leading a successful project, or even solving a long-standing problem, these achievements prove your value.

Your raise request is most potent when your contributions are fresh in their minds. For example, if you led a campaign that increased sales or saved the company time and money, that's clear evidence of your impact. You're not just asking for a raise—you're showing them why you deserve it.

2. During Performance Reviews

Performance reviews are the golden opportunity for salary conversations. Your manager already has your performance and contributions top of mind, making it easier to tie your raise request to your achievements over the past year. If you've consistently met or exceeded expectations, a review is an ideal moment to demonstrate your growth and discuss how that merits compensation.

Be prepared to align your salary request with the feedback from your review. It's the perfect time to position your raise as part of your continued progress within the company.

3. When the Company Is Experiencing Growth or Success

If your company is thriving—whether through increased revenue, new clients, or successful product launches—this is a good time to discuss a raise. When the company is financially stable and expanding, they're more likely to reward employees for their contributions. This also shows you're in tune with the company's success and want to share in the growth.

It's a good idea to research the company's financial standing and be aware of any positive growth trends before bringing up the topic.

When NOT to Ask for a Raise?

1. During Layoffs or Company Financial Downturns

Asking for a raise during a layoff period or a financial downturn is a bad idea. It not only looks tone-deaf, but it can also make you seem disconnected from the company's current struggles. When layoffs occur or the company is in a cost-cutting mode, your manager might feel uncomfortable granting your raise request.

Instead, use this time to show loyalty and commitment. Focus on your performance, and keep track of your contributions so you can ask for a raise when things are more stable.

2. When You Don't Have Achievements to Show

If you haven't made any significant impact over the past year, it's not the best time to ask for a raise. While everyone wants to earn more, you must demonstrate value to justify your request. Without tangible evidence like successful projects, meeting KPIs, or going above and beyond, it might be harder to convince your boss.

If you've been slacking or your performance hasn't been stellar, focus on improving your work before initiating a raised conversation. Managers typically respond better when they have solid, measurable achievements to discuss.

3. When the Company is Going Through Major Changes

If the company is undergoing leadership changes, restructuring, or merger talks, it's probably not the best time to bring up salary negotiations. These moments can be uncertain for the company's future, and your manager might be more focused on long-term strategy than individual raises.

Wait for a time when the company has found its footing again and there is more clarity and stability in its direction. You don't want to seem like you're adding to the uncertainty.

Understanding Average Pay Raises

Typical Raise Percentages: What's Considered Standard?

When asking for a raise, knowing what's reasonable based on industry norms and economic conditions is important. Here's a breakdown of standard salary increases:

Standard Annual Raises (Cost-of-Living Adjustments - COLA):

• Most companies offer a 3% annual raise, mainly to adjust for inflation and retain employees.

• The 2024 U.S. Bureau of Labor Statistics (BLS) report states that private sector wages increased by 4.5% over the last year, showing that raises are slightly outpacing inflation.

• In Europe, salary increases range between 2-5% annually, depending on the industry and country.

Merit-Based Raises:

• Employees who exceed expectations or take on additional responsibilities typically receive a 4-6% increase.

• In competitive industries like tech, finance, and consulting, merit raises can go up to 10-12% for top performers.

Promotional Raises:

• If you receive a promotion, expect a 10-20% salary increase, depending on the role and industry.

• A Glassdoor survey found that the average promotional raise in the U.S. is 15%, but it varies significantly across companies.

High-Impact Raises (Job Change or Retention Offers):

• Employees who switch jobs often receive 15-25% salary increases.

• Those negotiating retention offers (to stay at their current job instead of leaving) may get a 10-30% raise—but this depends on market demand.

Industry-Specific Pay Raise Trends

Certain industries are more generous with raises than others. Here's a sector-wise breakdown of salary increase trends:

Technology & IT:

• Due to the high demand for skilled professionals, tech employees saw average raises of 5-7% in 2024.

• Software engineers, AI specialists, and cybersecurity experts receive higher-than-average merit increases, sometimes exceeding 12% annually.

Healthcare & Pharmaceuticals:

• Salary hikes in healthcare have been significant, especially for nurses, doctors, and biotech researchers.

• The American Medical Association reported an average pay raise of 6.1% in 2024, the highest in over a decade.

Finance & Banking:

• Investment bankers, financial analysts, and accountants typically receive 4-8% annual increases.

• Bonus structures in finance often outweigh base salary increases, with some professionals earning 50-100% of their base pay as a bonus.

Retail & Hospitality:

• One of the slowest-growing salary sectors, with average raises of around 2-3%.

• However, due to labor shortages, frontline retail and restaurant workers have seen wage increases as high as 10-15% over the last two years.

Manufacturing & Industrial:

• This sector's rises closely follow inflation, typically ranging from 3-5% annually.

• Skilled trades, such as welders and electricians, saw salary increases of 6% in 2024 due to demand.

Media & Marketing:

• Journalists, content marketers, and advertising professionals tend to receive modest annual raises of 2-4%.

• However, those working in growth marketing, branding, and digital advertising may negotiate higher raises, up to 8% per year.

Economic Factors That Impact Salary Increases

Your employer's ability to give you a raise isn't just about your performance—it's heavily influenced by external factors.

Inflation:

• If inflation rises, employees expect higher raises to maintain their purchasing power.

• In 2022, when U.S. inflation hit 9.1%, companies responded with record-high pay raises to keep up.

• In contrast, 2024 inflation is around 2.9%, leading many companies to scale back raises to pre-pandemic levels (~3-4%).

Labor Market & Talent Shortages:

• When industries struggle to find talent, companies offer higher pay raises to retain workers.

• Due to high demand and low supply, the tech industry, healthcare, and skilled trades are currently seeing some of the biggest pay hikes.

Company Profits & Budgeting:

• If a company is struggling financially, raises will likely be lower or nonexistent.

• Some organizations freeze salary increases during recessions or downturns to preserve cash flow.

Union & Labor Agreements:

• Employees in unionized jobs often have guaranteed pay increases set by contracts.

• For example, the United Auto Workers (UAW) Union recently negotiated a 25% pay raise for its members over four years.

Data-Backed Insights on Pay Raises

Here are real-world salary increase statistics from 2024:

U.S. Salary Trends:

• Wages and salaries increased by 4.5% over the past year (BLS 2024).

• The median salary increase across industries was 4% (WorldatWork survey).

Industry-Specific Pay Growth:

• Healthcare: 6.1% average pay raise (American Medical Association).

• Technology: 5-7% average merit increase.

• Retail & Hospitality: 2-3% standard raise, but labor shortages led to 15% increases for some frontline workers.

Raises for Job Changers vs. Staying Employees:

• Employees who switch jobs get an average pay bump of 15-25%.

• Employees who stay in their roles see average annual raises of 3-5%.

Global Salary Trends:

• In Canada & the UK, average raises hover around 3-4%.

• European Union: Raises range from 2-5%, with inflation adjustments.

Factors That Determine How Much Raise You Should Ask For

Asking for a raise isn't just about throwing out a number and hoping for the best. If you want to be taken seriously, you need to back it up with logic, research, and timing. Several key factors determine how much of a raise you should ask for—your performance, market standards, your company's financial health, and even the economy.

Here's how you can figure out the right raise amount based on these critical factors:

Your Performance & Contributions – What Have You Done to Earn It?

Let's be real—if you want more money, you need to prove you deserve it. Employers don't hand out raises just because someone asks. Your request needs to be based on how much value you bring to the company.

Think about the last year:

• Have you exceeded targets or KPIs?

• Have you taken on extra responsibilities without a title change?

• Have you led projects, mentored others, or improved processes?

If you can say "yes" to any of these, you have solid evidence to support your request to raise money. Numbers help. Saying, "I helped improve team efficiency," is weak. But saying, "I implemented a new workflow that reduced project timelines by 20%," makes your impact crystal clear.

Market Research – What's the Going Rate for Your Role?

Your value isn't just about what you've done—it's also about what people in your role are earning elsewhere. If your company is underpaying compared to industry standards, that's leverage for a raise.

Here's how you can check:

• Look up salary data on Glassdoor, Payscale, LinkedIn Salary Insights, or the Bureau of Labor Statistics.

• Compare salaries based on your job title, years of experience, and location.

• Check job postings for similar roles—companies often list salary ranges.

Once you have data, use it in your conversation. Instead of just asking for a raise, say:

"Based on industry benchmarks, professionals in my role with similar experience earn between $75,000-$85,000. Given my performance and contributions, I believe my compensation should reflect that range."

Company Financial Health – Can Your Employer Afford to Give You a Raise?

Even if you deserve a raise, your company needs to be able to afford it. Timing is everything. Asking for a raise right after layoffs or a bad quarter? Not the best move.

Before making your request, consider:

• Is the company growing? (New clients, product launches, hiring?)

• Has leadership mentioned strong financial performance?

• Are colleagues getting raises or promotions?

If your company is struggling financially, a raise might not be possible—but that doesn't mean you should drop the conversation. Instead, ask for other perks like additional PTO, a performance-based bonus, or professional development funding.

Final Thoughts – How Much Should You Ask For

Once you've factored in your performance, market rates, company health, and inflation, you should have a realistic salary range in mind. A good rule of thumb:

• For standard annual raises: 3-5%

• For strong performance raises: 6-10%

• For promotions or role expansions: 10-20%

Conclusion

Asking for a raise doesn't have to be a nerve-wracking experience. Armed with the right research, timing, and confidence, you can make a strong case for why you deserve more. Remember, it's not just about the salary—it's about recognizing your contributions and aligning your worth with your company's goals.

By knowing your value, being prepared, and choosing the right moment, you'll be on your way to getting the raise you deserve. So, take a deep breath, be confident, and start the conversation. You've got this!