Does a Shortage of Talent Mean it’s Time for a Raise?

These are very interesting times. Many people tell me how difficult it is to find people to fill jobs that they have vacant in their companies. Plainly put, it appears that there are more job openings than there are qualified people to fill them.

This presents an interesting situation for those who are employed. Since there is a shortage of people, does this mean that you’re worth more to your employer? Is this the time to ask for that raise that you’ve been thinking about?

Before you get carried away and run into your boss’s office waiving this column saying, “See, Pepper said it was time for me to get a raise!” finish reading what follows.

First, you must have credibility. What I mean by this is this: if you are not performing at the very top level of what is expected of your position, you have no credibility when it comes to asking for a raise. Now, let’s assume you are doing a good job, you’ve been getting good performance reviews, and you feel that you are truly not being paid at a level that is considered “market” level for your position.

It is very important how you approach your supervisor or human resources director. No one likes to be held hostage with an ultimatum like, “Unless I get 5,000 more crowns I’m leaving.” This is an exaggeration, but you get the point. What’s the message here? The message is that all you’re interested in is money. If you happen to have your employer backed into a corner for some reason and they literally have to pay you more there’s no question you’ll get that raise.

There’s also no question that you will be putting a target on your back. You can bet that plans will be initiated immediately to replace you, either by looking for someone else, or looking at who can be trained to take your position, or how your duties can be divided up and handled by others. In other words, you get the raise but you’ve just ended your career at your current employer. Believe me, it’s a small world and it won’t take long for people in your business sector to figure this out and to regard you as a “flight risk” rather than a valuable employee.

Now, there are many ways to approach this properly, professionally, and in a way that doesn’t alienate people. My good friend and top-notch human resources executive, Phyllis Huckabee, offers these tips. Be prepared when you approach your boss—do your homework. What are you basing your request on—something a friend told you, a survey, something you heard on the radio, or read in the newspaper—what? Obviously, the more informed and relevant your source of information is, the more credibility your request will have. The conversation should begin something like this, “Mr. Boss, I want you to know that I really enjoy working here. I love my job and the people I work with, but I feel there is greater opportunity in the marketplace for me financially. I wanted to be open with you about this and ask for your thoughts.” Now, the dialogue begins. You have registered your point, shown respect and asked for your boss’s input. You can now present your case.

Two words of caution: Know what you want to accomplish before you get into this conversation, and look at this holistically. Huckabee: “The place that pays the most is not always where you would want to work.” Your future career opportunities within the company, interesting projects that would be available to you, the corporate culture, the industry perception of the company and many other things weigh heavily here.

Be patient. Don’t expect to solve this problem in one meeting. The other thing she advises is to be open to creative solutions to this problem; more vacation time, a restructuring of your bonus plan, a more challenging project assignment that will lead to a promotion. With the right attitude and approach you will represent yourself in a professional way and greatly increase the likelihood of a positive outcome.