Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

The Ascent Logo The Ascent Logo - Blue circle with an A in it and the ascent a motley fool company to the right of that

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of January 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of January 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for January 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of January 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for January 2021.

Get Started!

Loans

Top Picks
  • Best Loans of January 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of January 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • $1,400 Stimulus Checks & More: Biden's Coronavirus Relief Plan Officially Released

    Personal Finance

    $1,400 Stimulus Checks & More: Biden's Coronavirus Relief Plan Officially Released
  • This Republican Senator Is on Board With $2,000 Stimulus Checks

    Personal Finance

    This Republican Senator Is on Board With $2,000 Stimulus Checks
  • Biden Expected to Include Child Tax Credit Expansion in Stimulus Plan

    Personal Finance

    Biden Expected to Include Child Tax Credit Expansion in Stimulus Plan
  • Some Workers Will Now Get an Extra 4 Weeks of Unemployment Benefits

    Personal Finance

    Some Workers Will Now Get an Extra 4 Weeks of Unemployment Benefits
  • The Ascent
  • Knowledge
  • Banking

How to Negotiate a Raise in 7 Steps

by Lyle Daly | April 2, 2019

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

You don't need to be stuck at the same salary anymore.

Man holding a folder while having a business meeting with a woman.

Image source: Getty Images

There comes a point in just about everybody's career when they need to negotiate a raise. After all, the best way to improve your financial situation is to make more money, and the two ways to do that are to either get a raise or find a higher-paying job.

If you like where you work, then you'd probably prefer to stay there over finding someplace new. Negotiating a raise can be tricky, but when you know how to do it, you have a much higher chance of success.

1. Research the salary range for your position

To know how much you can realistically ask for, you need to know what the salary range is for your position. Fortunately, thanks to the internet, this information is much easier to obtain than it used to be.

Check out a few pay scale sites to pull up average salaries for your position. Make sure that the sites you use also account for your location. Salaries for the same position can vary quite a bit depending on where you live.

2. Make a record of all your successes at your current job

If your only justification for a raise is, "I want more money," you're going to get the typical response of, "Sorry, that's not in the budget." You need evidence of your value as an employee. Depending on what you do, this could be:

  • Performance reviews
  • Positive feedback from management, clients, or customers
  • Additional responsibilities you've taken on

3. Set your target salary

After you've researched the salary range for your position and reviewed your own performance, you can use that information to decide on a target salary. If you have the experience and you've been a top performer, then you can aim toward the high end of the salary range.

While you don't want to ask for an outrageous amount here, it is good to aim high. It's better to ask for more money and have your employer offer you less as a compromise than to ask for too little and miss out on thousands of dollars per year.

4. Consider other benefits you'd accept as an alternative

There's no guarantee your employer will be amicable to your raise request. Even if they are, you could end up unable to settle on a number.

In situations like that, it helps to have some alternative benefits you may accept in lieu of money. Here are some examples to consider:

  • The option to work from home for one day or more per week
  • Different hours or a more flexible schedule
  • More paid time off
  • Stock options

5. Prepare what you'll say with mock negotiations

The best public speakers practice often before a speech, and if you do the same, you'll be much more confident and prepared when you ask for your raise.

Start by outlining what you're going to say to your manager. For example, you could break your request down into three parts:

  • Your accomplishments -- Go over the positive feedback and metrics you collected earlier to demonstrate your value.
  • Your plans to help your employer -- Explain what your future plans are to benefit your company.
  • Your raise request -- Present the salary range for your position and tell your manager you'd like to increase your salary to $XXXX per year/hour.

Once you've prepared that, you can set up mock negotiations with friends and colleagues to get more comfortable. Make sure that they throw some objections your way so that you can learn how to handle those as well.

6. Pick the right time for your meeting

Timing is a big part of getting a successful raise. If you meet with your manager when they're under the gun or you ask for a raise after a round of layoffs, you're shooting yourself in the foot.

The ideal time for a meeting about a raise is when your company is doing well and after you've demonstrated what a valuable employee you are. For example, if you recently took on a larger workload or led a successful project, it'd be perfect timing to talk about a raise.

7. Meet with your manager

With all the prep work complete, it's time for the moment of truth. Schedule a meeting with your manager, and when you meet with them, dive into the request you prepared earlier.

The best-case scenario is that your manager approves your raise request right away, but more often than not, it doesn't go that way. Be prepared to work around any objections they have. If they say there's no money in the budget, you can propose the alternatives you thought of or ask when there will be money for your request.

You may not get an immediate bump in pay, but if you stick to your guns, you should at least get a strong idea of what your employer can do for you and when they could increase your salary.

What to do after a salary negotiation

The goal for a salary negotiation is that you get a raise or other benefits that you're satisfied with. If you do get an increase in pay, make sure that you use it wisely. You could:

  • Put it in one of the top bank accounts to earn interest and save for the future.
  • Increase your 401(k) contributions.
  • Open an individual retirement account (IRA) to increase your nest egg.

What if you weren't successful getting a raise? If your employer seemed open to it but just couldn't accommodate your request immediately, then you may want to give them time and revisit the subject later. If they completely shut you down or you feel like you're not getting what you deserve, then it could be time to look for a new job.

These savings accounts are FDIC insured and can earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you more than 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2021.

Two top online savings account picks

Rates as of Dec. 29, 2020 Ratings Methodology
Logo for CIT Bank Savings Builder
Logo for American Express® High Yield Savings Account
CIT Bank Savings Builder American Express® High Yield Savings Account
Member, FDIC Member, FDIC
Rating image, 5.0 out of 5 stars.
5.0 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.0 out of 5 stars.
5.0 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
Open Account

On CIT's Secure Website.

Open Account

On American Express' Secure Website.

Read Review Read Review

APY: Up to 0.45%

APY: 0.50%

Best For: No monthly maintenance fee

Best For: High APY

Min. to earn APY: $25k or $100 monthly deposit for highest tier

Min. to earn APY: $0

About the Author

Lyle Daly
Lyle Daly icon-button-linkedin-2x icon-button-twitter-2x

Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance.

Share This Page
Blue Facebook Icon Share this website with Facebook
Blue Twitter Icon Share this website with Twitter
Blue LinkedIn Icon Share this website with LinkedIn
Blue Mail Icon Share this website by email

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Featured Offer

Amex_Savings_BlueBox_Double_Line_226x142.png

High APY and low fees

Open Account

Related Articles

Piggy bank surround by cash stacks image for Best Online Savings Accounts for 2021

Best Online Savings Accounts for 2021

Interest spelled out on a calculator image for Best CD Rates

Best CD Rates

Man holding credit card and looking at computer screen laughing with woman image for What is APY and What Does it Mean for Your Savings Account?

What is APY and What Does it Mean for Your Savings Account?

Couple looking at a paper bill together at a table worried image for Is it Time to Switch Banks?

Is it Time to Switch Banks?

Featured Articles

Best Online Savings Accounts for 2021

Best CD Rates

What is APY and What Does it Mean for Your Savings Account?

Is it Time to Switch Banks?


We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool