If you feel that you’ve performed well in your SaaS job and deserve a pay increase, you could try asking for a raise. But having an honest and open dialogue about money with your boss can be unsettling. So, what’s the best approach to broaching the topic? Here are eight things you should consider before asking for a pay raise in your SaaS job.
Right Timing is Key
When approaching your boss about the possibility of a raise, remember that there is always a right time and place for anything.
The worst time to ask for a raise is during a ‘high-stress’ period, such as when your boss is anxious or overworked or when the team is busy with a high-stake project nearing its deadline.
It’s also not a good time to ask when your company isn’t performing well. Cutbacks in spending and/or layoffs are two warning signs the firm is in financial trouble.
The best time to ask for a raise is after a major accomplishment. Use the momentum of your success to your advantage. You could find yourself in an ideal position to request a salary increase.
Alternatively, a reasonable time to have this discussion is at your annual performance review when income is relevant and expected.
Ask for Feedback and Share Your Goals
Have an honest and open conversation with your boss. Danielle Harlan, the CEO of The Center for Advancing Leadership and Human Potential, advice:
“If you’ve been in your current role for at least six months, then in a non-pushy or self-serving way, have a conversation with your supervisor to let them know that, while your priority is to excel in your current role, your long-term goal is to advance and that you want to make sure you’re doing everything that you can to set yourself up for success.”
Harlan also says you should ask for ideas and recommendations on how you can improve your current SaaS job and things to do that will position yourself better for the next one. Then put the feedback into practice, so you’re prepared when it’s time to ask.
Demonstrate Your Accomplishments and Added Value
Pay raises are often given not because you perform your job well but because you are doing it extraordinarily well.
Before you ask for a raise, you should identify where you’re excelling and performing beyond your role’s defined responsibilities.
Make a list of your achievements and any new duties you’ve taken on. A wage boost typically results from increased responsibility, such as managing additional personnel or taking on special projects.
Be sure to provide examples of projects you’ve worked on and how they’ve benefited the company.
Quantify your worth by using statistics, awards, or accolades to show how you’ve helped the SaaS company. These are strong predictors of both your past accomplishments and your future potential.
Share Your Accomplishments Early and Often
Ideally, your boss should notice your value and professional accomplishments throughout your tenure. Waiting to share all your accomplishments all out once may work. Still, it’s a less effective approach, according to Jenn Grasso, vice president of product at Elemy.
She describes the time she gave an unplanned promotion to a product manager:
“The most important thing she did was consistently exceed expectations in terms of her current role and job responsibilities … She was also great at proactively communicating her accomplishments to me. When she approached me with her request for a promotion, I already knew she deserved it! Every step of the way, she made it easy for me to see that she was a star performer who deserved a better title and salary.”
Focus On Why You Deserve it
Focus on why you deserve a raise rather than why you need one when asking for a raise.
Too often, people argue that a salary increase is necessary to keep up with our rising living costs. Employers rarely care about arbitrary reasons. They only give raises to people based on performance.
Avoid bringing up personal issues like your rent increasing or needing to plan for your wedding. Instead, focus on your performance and positive impact you made in your SaaS job.
Conduct Research to Know Your Worth
Conduct background research to determine your market value before any salary negotiations.
Diane Domeyer, senior vice president at talent solutions firm Robert Half, suggests you need to study salary trends for SaaS professionals with comparable job titles, skills, and qualifications in your location and industry.
Use websites such as PayScale, Glassdoor, and Salary.com to research the market rate for your current or future position.
It will come in handy when your supervisor asks you how much you want to make or how much she wants to offer you.
Here’s a tip: Give a specific number when negotiating a pay raise in your SaaS job.
Researchers at Columbia Business School discovered that giving a specific number rather than a round number made the individual appear more knowledgeable. They discovered that those who provided a specific number were more likely to receive conciliatory counter offers.
Instead of requesting $70,000 or $75,000, want $73,500. It’s also useful to know that the average pay raise is between one to five percent. You don’t want to propose an unrealistic figure.
Practice Your Pitch and Prepare for Any Questions
Similar to preparing for a SaaS job interview, the conversation will almost always go better if you practice your pitch and rehearse your possible responses ahead of time.
Try role-playing possible outcomes and playing the part of a resistant boss. You’ll end up having more confidence afterward since you’ll be able to anticipate their replies and know how to address them.
Talk about the Future
Demonstrate that you care about the SaaS company. Loyalty is important to every boss.
Start on a high note by expressing how much you like working for your boss and the organization. Then, express what you want to achieve in the future and how you plan to contribute to the company’s growth.
Be a proactive problem-solver and volunteer for a project or start one. Explain the new duties you’d like to take on and how they’ll help the company grow and earn more money when leveraging a project to get a pay raise.
If you’ve performed well in your SaaS job and applied all the tips above, there’s no reason your boss shouldn’t give you a pay raise. Just make sure to do your research and come prepared with a solid argument as to why you deserve a raise.
Nonetheless, don’t be discouraged if your request for a pay raise gets rejected. It doesn’t have to be the end all be all. Keep in mind that you have options and don’t need to stay in a job that doesn’t appreciate your worth.
Partner with a recruiter you can trust and will have your best interest in mind by working with Jarvis.
Jarvis is a world leader in SaaS recruitment services. We’ll help you find the best roles that meet your salary requirements and guide you through every step of the job interview process.
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