How to Ask Your Manager for a Raise When You Have a Job Offer

Even though a competing job offer gives you undeniable bargaining power in salary negotiations, using the offer as leverage also means you will be forced to admit you've been interviewing. Asking your manager for a raise when you have another job offer is risky and requires a tactful, strategic approach to minimize the possibility that you will end up losing your current job. Don't back your boss into a corner by using the offer as a threat; plan carefully to present your request the right way.

Instructions

1. Assess the other job offer. Consider if you are serious about taking the job or if you are just using it as a negotiations strategy. Know your bottom line and whether you are prepared to lose your current job if the negotiations don't go your way.

2. Schedule a meeting with your manager. Let him know that you would like to discuss your salary so the issue doesn't come as a surprise. Try to pick a time of day when your boss won't be rushed, stressed or in a bad mood.

3. Gather documentation on the current market rates for your position. Review salary data for the industry on websites such as the Bureau of Labor Statistics, comparing your salary against competitors' recruitment announcements or even conducting a salary survey among your peers at similar companies. Determine if the offer you received is comparable to the market rate, so that you can share this information with your manager. For example, "The average salary for an entry-level engineer in our industry is $60,000, slightly more than I'm currently making. As you know, I have several years' experience, and I've received a job offer for considerably more than that."

4. Prove your worth to the organization. Remind your boss about your significant achievements and recent accomplishments. For example, "I really appreciated the opportunity to partner with the marketing department. In fact, my award-winning campaign is one of the reasons the other company approached me."

5. Reassure your manager that you don't want to leave. Tell him how much you value your position and emphasize that you are committed to the company. For example, "I love working in this department and I really don't want to leave. But a salary increase of this size is hard to turn down. Is there anything you can do?"

6. Allow some time for your boss to think about the situation. Don't expect an immediate answer; your manager might not be the final decision-maker. Follow up if you haven't heard anything after a few days. If you have to respond to the other company by a certain date, let your manager know the time frame upfront.

Tips & Warnings

• Determine if you would settle for other forms of indirect compensation instead of a raise, such as additional vacation days or an enhanced benefit package.

• Understand your company's financial situation. If the company is not performing as expected, or has been forced to lay off other staff members, a raise may not be feasible.

References

• Harvard Business School Working Knowledge; Negotiating What You're Worth; Mark Gordon; April 2005
• University of Texas at Austin; McCombs Career Webinar Win-Win Negotiations; Laura Hill; April 2011
• The Ladders; How to Turn a Job Offer Into Raise; Kevin Fogarty; January 2010
• The University of Rhode Island; Reward and Compensation Systems; Charles T. Schmidt