Asking for a Raise: How (and When) to Do It

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WSJ Your Money Briefing 12 min 3 speakers 5 chapters transcribed 2 months ago
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Unknown 0:00
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J.R. Whalen 0:30
Here's your money briefing for Thursday, April 14th. I'm J.R. Whelan for The Wall Street Journal. The job market is hot. Millions of people are quitting their jobs in search of a better situation and usually more money. But whether you plan to leave your job or not, the key to landing a higher salary might come down to knowing how and when to ask for it.
Tessa White 0:54
Money goes to those who ask, not to those who wait. If you think that waiting in line for your annual increase is the way you're going to get ahead, you are incorrect on all fronts.
J.R. Whalen 1:02
On today's show, we hear from Tessa White, a career coach of 20 years, on how you can effectively negotiate for a raise and more. That's after the break.
Unknown 1:11
This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com.
J.R. Whalen 1:48
The best time to ask for better pay? Maybe right now. There are far more open jobs and employees available to fill them, and companies are ramping up salaries to bring people on board and keep them. But a higher salary won't just land in your lap. You have to know how and when to ask for it. At the recent Wall Street Journal Job Summit, Tessa White, founder of The Job Doctor and a veteran career coach, spoke with our work and life columnist Rachel Feinzig about how to ask for more money, both as a job candidate and as a longtime employee. Here are some highlights from their conversation, starting with Rachel.
Rachel Feintzeig 2:18
How do you prepare for a conversation like this? Let's start with, I'm getting a new job. What should I have on hand? How do I prepare for this?
Tessa White 2:26
Understand that asking for a job is a lot like selling something. So you're the product and you're selling something. And if you hold true to principles, you would always wait, this sounds very counterintuitive, but you wait to ask about pay to get the highest pay. So you try to avoid a specific conversation about pay You need to verify the range so you don't waste time. But holding until the end is really important for three reasons. Because if you wait till the end, you have leverage. Leverage because they're already invested in you as a final candidate and they don't want to start over. There's already buy-in on the team that they want you. They just simply have already fallen in love with you. You want to wait till they just love you before you ask for things because the more they love you, the more likely they are to make concessions.
Tessa White 3:13
If you ask, like you're dating, if you ask to get married on the first date, your likelihood of getting that ring is zero. And the same is true with pay negotiation. You just need to wait to bring it up till the right time. Tell me what's on the table now. What can you negotiate? Well, you can negotiate about anything nowadays. Most people think they can only negotiate or they only try to negotiate their base pay. And while base pay is really important and a big part of your compensation, there's about 12 things you can negotiate in an offer. So let's kind of walk through what those would be. You can't ask for all of them, obviously. That would not be good.

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