Unlocking the Potential of Your Annual Review: Four Types of Raises to Consider for Salary Negotiation

Are you preparing for an annual review, end-of-the-year meeting with your supervisor/chair, or evaluation? If so, this post is for you!

Here is a list of four types of raises you might consider during your annual review or evaluation:

1) Merit Raise

 
A merit raise involves an increase in salary to an employee that is granted for outstanding performance. A merit raise may affect a permanent increase in your base salary, a one-time bonus, or extra compensation based on your achievements and the value you have added to the job. These raises often happen upon request by the employee. Don’t wait for the employer to consider you for a merit raise. Be proactive by learning how these raises work within your workplace and request a merit raise when you feel ready or desire more pay.

See what I did there? You may never “feel” ready or “worthy,” so I added, “or desire more pay”. 

When asking for a merit raise, it is always essential to prepare in advance. It is best to go into your review with precise data on your past, present, and future.

What have you done?

What are you doing now?

What do you plan to do in the future?

Quantify the contributions and accomplishments you have made since your hire or your last evaluation/review. Additionally, plan and prepare your vision on the impact you plan to make on the organization moving forward.

When quantifying your wins, look beyond your resume or curriculum vita. There are often things that do not appear on your resume that are noteworthy and should be shared with your employer. Here are a few examples:

1)    Completion of a Certifications

2)    Presenting or Participating or Hosting a Training

3)    Extra Service

4)    Mentoring

5)    Participation on Committees

6)    Assisting with Hiring and Recruitment

7)    Gaining Expertise in a Specific Area

8)    Submission of Funded and Unfunded Grants

9)    Assisting with On-boarding

10)  Participation in Community Events/Activities

11)  Volunteer Work

12)  Overtime

13)  Nominations for Awards (Regardless if the award was received)

14)  Receipt of Thank You Notes Recognizing Your Work and Contribution

15)  Customer, Colleague, or Student Reviews and Recommendations

16)  Development or Participation in Specialized Initiatives that Align with the Goals and Vision of the School/Organization

2) Equity Raise

Have you learned you make less than your colleagues and are equally or more qualified? If so, the equity raise is ideal for you! An equity increase is a permanent increase to your base salary that does not require a change in title, rank, duties, or job description. Equity raises can adjust salary, making them more equitable across employees without adding additional responsibilities to your role.

3) Promotion

A promotion is a raise based on reclassifying your position or change in your job title. This raise is often associated with a new rank, new duties, or new or added responsibilities. Think of going from a co-director to a director or an assistant professor to an associate professor! Be sure your work is in line with your job description; if not, consider asking for a promotion.

4) Cost of Living Raise

A cost of living raise is a raise that companies, businesses, and schools leverage to help employees maintain a salary that is on par with inflation and housing rates. This raise is often a fixed percentage that is predetermined by the job. For some employers, this is an automatic raise you will receive annually. For other employers, this might be a raise you need to request. Regardless if you have to ask for a cost of living raise or not, be sure to know what the percentage is at your workplace so that you can manage the increase well and be intentional about how this increase will impact your monthly budget.

Need help preparing for negotiating? If so, check out my courses, book, or set up a 30-minute strategy call. I am here to help you!