110 Money Stories, Vol. 2: This "Folder" Helped Me Get Tens Of Thousands Of Dollars In Raises
From a podcaster who says he's earned multiple raises because he was willing to speak up
Hi, my friend!
I interviewed more than 110 people in writing my book, “Ask Questions, Save Money, Make More: How To Take Control Of Your Financial Life.” To keep the book from being about 700 pages long, an enormous amount of useful information and many interesting stories simply had to end up on the cutting-room floor, unseen. Until now.
This is the second in a series called 110 Money Stories, in which I’ll share some of the best stuff that didn’t quite make it into the book. The series will include a diverse group of voices and touch on a wide variety of topics, but it will always live up to the promise I made to you with this newsletter: Every story will have some takeaway that you can use and apply to your own financial life.
Enjoy!
Andy Hill is living proof of the benefits of advocating for yourself at work.
Hill, the host of the “Marriage, Money and Kids” podcast, estimates that he’s earned tens of thousands of dollars more in salary over the years because of his willingness to speak up.
“If I would've stayed quiet,” Hill says, “I would not have had that money.”
One of the secrets of his success is super-simple. He calls it his “cheerleader folder.”
This isn’t about backflips and tumbling runs, though. It is about ensuring that the good work that you do at the office doesn’t go unnoticed. This “folder,” which doesn’t have to be anything more than a simple text document, is a collection of things that prove that you’re amazing at your job.
What may be included?
A compliment from a superior or a client
Data about how you exceeded your sales goals during a given period
Description of a time when you went above and beyond in helping someone accomplish something
Links to media coverage that you earned for your company
Documentation of the grades you got in pursuing that advanced degree
Awards that you got from the company or outside
Numbers showing how a move you made saved the company a lot of money or brought in a bunch of money
Details about a project you led that made your office work more efficiently
The possibilities are infinite, and of course, they’ll vary for everyone. What matters most is tracking these wins – big, small and everywhere in between – so you can refer back to them when it comes time to ask for that raise or that promotion.
That way, rather than wracking your brain to think of all of the amazing things you’ve done, you’ll instead be able to cherry-pick the best, most impactful items when making the pitch to your boss.
It is important to be as specific as possible, too. It sounds way more impressive to say “Exceeded sales quota by 75% in Q2, bringing in an extra $100,000 for the company” than just to say “Exceeded sales goals,” for example.
Of course, even with all the documentation, references and good vibes in the world, asking for more money can be nerve-wracking for even the most confident negotiator. For the rest of us, it can be absolutely terrifying, so be kind to yourself as part of the process.
Role-playing with a trusted friend or relative can help take some of the edge off. Have the other person pretend to be your boss and then walk through a conversation about a raise. Ideally, you’d do it three times or more: The first would go flawlessly and you’d get your way; the second would be a little more contentious; and the third might even get a little heated. The goal is to help you realize that your world isn’t going to end if the conversation goes awry and to help you think through how you might respond if the situation goes off the rails a bit. You won’t able to predict every possible scenario, but even role-playing just a few can help you feel better equipped to manage what may come.
Here are some other tips Hill shared for those looking to negotiate a higher salary or promotion…
Update your resume every quarter or so with your latest accomplishments. Even if you’re not job hunting, it can be worth taking a few minutes every so often to update the key bullet points on your resume to include the latest good news from your cheerleader folder. Not only can that make you better prepared for a talk internally about a raise or promotion, it can also make you better prepared to act quickly in case a job opportunity arises with another company or you’re laid off from your current company and suddenly find yourself looking for the next gig.
Do your homework to understand how your pay compares to others. “What's been fantastic over the last decade is the rise of salary transparency and the information out there on websites like Glassdoor,” Hill says. “You can really investigate ‘Am I getting paid a lot less than my peers? Am I getting paid what I need to based on my work that I'm putting in?’” Then, he says, you can take that data you find and use it to bolster your case for a raise.
Read the room and pick your spots. If you’re approaching your boss at 4:45 on a Friday afternoon to talk about a raise, you’re probably not going to get the most enthusiastic response. Also, Hill says, “If you just got out of a meeting where your company just said, ‘Hey, man, we just had our worst quarterly loss in 10 years’ and then you bust into your boss's office and say ‘I think I deserve a raise, and here's the reasons why…’” it probably isn’t going to go well. Of course, a bad financial quarter at your company shouldn’t entirely shut the door on raises. In fact, a top performer may even have more leverage than usual when a company is struggling – they won’t want to lose their best people and make a bad situation worse – but asking for extra cash soon after a tense meeting detailing the company’s woes likely isn’t the move.
Don’t be a jerk. Acting tough and pounding your fists on the table may work in negotiations in the movies, but it may end up backfiring in real life. Be polite. Be warm. Be congenial. Of course, that doesn’t mean you have to roll over and take an offer you don’t want. Kindness doesn’t mean weakness. It just means that people are more likely to help someone that they like and acting like a jerk when asking for something can make you less likely to get it, even if it is something that everyone in the room thinks you deserve.