10 Things to Ask Yourself Before Asking for a Raise

So, you think you deserve a little more money for your hard day's work? Maybe your role in a project caused a mini-celebration at a company that otherwise is sharing in the general gloom of the world economy. Forty percent of U.S. companies have announced a freeze on pay raises this year, according to a recent Reuters article. You, however, want more money. But do you dare ask for a raise now, in a waning economy?

1) Performance. "Offer specific examples of your overall performance. Think 'made, saved and achieved.' Ask yourself what you have done for your company that will put an extra value on you," says Glenn Dubiel, vice president of the Mergis Group. Prepare well in advance and be equipped with how your performance has helped the company and how you plan to do so again in the future.

2) Pay. Knowing how your salary stacks up to others can help you decide if a raise is warranted and timely. Compare your pay rate with those of your peers using the tools at salary websites, like PayScale.com. PayScale.com lets you look up the salary ranges by job title, experience level, and geographic area.

3) Skill level. Are your skills superior to others in the same line of work? Have you exceeded expectations through initiative or problem solving? Are your actual skills what set you apart, or are you just in the right place at the right time? "Employers don't pay for luck very often," says Ron Price, CEO of Price Associates.

4) Reputation. Take time to assess how you're viewed by your peers. Are you the most talented software engineer, the best sales person, the most creative producer? Do you cooperate with coworkers to get things done? Are you absolutely solid on basics like professional appearance, attendance, and diligence at work?

5) Occupation. In general, expectations for salaries across the board are flat. A few, though, are growing. "Two jobs with very strong pay growth over the last two years, and still good over the last six months, are pharmacist and physical therapist," says Al Lee, director of quantitative analysis at PayScale.com. Other jobs command a greater salary depending on years of experience. This is especially true for software developers and IT managers.

6) Company climate. Has your company just announced layoffs, salary freezes, or wage cuts? If so, this does not necessarily mean you shouldn't ask for a raise. You do, however, have to proceed with caution. "If you can't demonstrate how your performance improves cash flow or will strengthen your company's position in the immediate term, forget it," says Stefanie Smith, executive consultant-coach at Statex Consulting.

7) Timing. Most experts agree, the best time to ask for more dough is after you feel your performance has really stood out. If you have just completed something spectacular, this might be the perfect time to ask for a raise. If your performance has been good, but not the absolute talk of the halls, consider waiting for your performance review period. In the meantime, Price suggests having a conversation with your boss with the following talking points:

• What is the most significant contribution you want me to make to our team's, department's, or the company's success?
• How do you think I am doing regarding this?
• What could I do better?
• What new skills or disciplines would you like me to work on?
• What guidelines, philosophies, or parameters do you use in determining my compensation?
• How would you like me to prepare for our discussion about my compensation going forward?
• Is there anything else that would be helpful for me to know or to prepare prior to my performance review?

8) Popping the question. Be sure to equip yourself with your performance highlights written down and fully prepare by doing the homework outlined in items 1 through 7. "Focus on selling yourself and your value, not on begging," says Dubiel. He also suggests presenting your case in a humble manner and rehearsing several times before you actually have the conversation.

9) Alternatives to raises. "Be willing to temporarily take responsibility without money; sooner or later the compensations will come and this will show career progression. In other words, if you can't get the raise, go for the title," says Dubiel. Other options include asking for a one-time bonus or a reinstatement of a cut benefit such as 401(k) matching.

10) What to avoid. Don't act entitled or adversarial. "Don't threaten to leave -- if you decide this is a necessary step to take, do it without threats so that you control when and how you go," says Price. Also, skip any reference to seniority or financial need. This will divert attention from the only leverage you have -- your performance.