Budgeting

Message Boards Property Pensions Savings Utilities UK Stocks Investing where next for markets Lloyds to ditch HBOS "Takeover"?? Why are the banks still tanking? Off shore Iceland Bank accounts question Lloyds to ditch HBOS "Takeover"?? Also on Yahoo! Finance Mortgages Insurance Loans Credit Reports Credit Cards Banking Savings Cut Your Bills Household Bills Phone Home From The Skies Energy Companies Blocking Price Comparison Students: Reduce Your Bills! Energy help: Too little, too late View archive Family Finances articles Eat Out For Less How To Have A Cheap Hallowe'en The Best Savings Accounts For Children How To Pay For Christmas View archive Retail Bargain articles Two Ways To Cut Your Mobile Phone Bill Get Free International Calls! The Cheapest Way To Read This Article! Cash in on supermarket price cuts View archive Budgeting articles What's the best way to buy a new car? Watch blockbusters without busting the bank Money Saving Tips For Students When Debt Turns To Despair View archive Travel Finances articles Should You Book Next Year's Holiday? Lessons From An Airline Collapse Beware budget airlines Save More Money In Airports! View archive

By Serena Cowdy

When we're in a tight financial spot, many of us come up with really inventive ways to make more money.

Eager to claw our way back into the black, we sell half our possessions on eBay, live entirely on baked beans, and take on second - or even third - jobs.

There are plenty of ways to tackle your debts (and believe me, I've tried most of them).

But it seems that many Brits are missing the obvious: Research suggests that millions of us don't ask for the pay rises we feel we deserve.

Even a modest pay increase can make a huge difference to your monthly budget, and as long as you approach the whole business in the right way, you have nothing to lose.

So - if you are thinking of popping the question, here's a step-by-step guide to exactly how to do it.

Timing is everything

In a nutshell - you need to pick your moment.

• Make sure you know how well/badly your company is actually doing. If it's just announced a plunge in profits, for example, you might want to hang fire for a month or two...
• Approach your manager with tact. Don't schedule the meeting at a time when his or her stress levels are likely to be particularly high.
• Try to open negotiations after a period of consistently good performance on your part, when your value has been fully demonstrated.
• And when you're requesting the meeting, keep the subject matter general. If you make it clear you're going to ask for a pay rise, your boss could say no before you've even got into the room. If you just ask for a performance review', on the other hand, you'll at least get the opportunity to make your case and sell yourself properly.

Do your research

• Bring some hard facts and figures to the table and you're much more likely to get what you want.
• Find out how much people in equivalent positions are being paid elsewhere in your profession. This will give you a better idea of whether you really are being underpaid.
• Your industry's main recruitment websites are a good place to start, as are salary surveys in trade magazines. If you are a member of a union, you could also ask them if they have conducted any research.
• Bear in mind that your boss is more likely to be convinced by evidence related to functions and activities, rather than job titles alone - so make sure you're able to draw these comparisons.
• And don't get personal. You may know that the chap next to you gets paid more for the same job (and doesn't do any work) but point that out and your boss may think you're highlighting his management failings. Tread carefully!

• Compare Electricity & Gas providers
• Compare Telephone providers

Presentation skills

For the meeting itself, make sure all the evidence you've gathered is presented in a clear, professional way.

Some people choose to put together entire PowerPoint presentations, while others prefer to present a single typed sheet.

List your main achievements over the last year. In each case, show how the achievement has benefitted your company. For example:

• Have you helped boost earnings?
• Have you helped reduce costs?
• Have you taken on any extra duties or contributed to projects outside of your immediate remit?
• Have you gained valuable qualifications or important experience?
• Have you introduced new ideas or working practices?
• Have you provided excellent levels of service? (Good testimonials from clients or senior management can provide valuable back-up here.)

Also explain what you hope to achieve with the company in the future, and highlight the new challenges you're looking forward to. This will demonstrate your commitment and help create a positive vibe.

Once it's all down on paper, think about how your manager may respond to each of your points, and work out your replies so you're not caught short.

And finally, make sure you're targeting the right person! Your immediate boss might be very sympathetic, but he or she probably doesn't control the purse strings.

With this in mind, try and build the sort of case that will also convince the powers-that-be, who may not attend your meeting.

Then try and make sure your manager passes on all this written evidence' to the decision makers.

Be flexible

If your pay rise request is turned down, all is not lost.

Before your meeting, think about other forms of remuneration that you could ask for. For example:

• Compare Digital TV providers
• Compare car insurance deals

• Additional training that would improve your future employment prospects
• Subsidised gym membership
• A higher car allowance
• Enhanced bonus package
• Better pension deal
• Flexible working
• More paid holiday

Your company isn't going to want to lose a valuable asset (you!) over pay. They may not be in the position to offer you more money - but they might be willing to offer other forms of compensation.

And if you don't ask, you'll never know.

Don't shout or cry!

If you don't get the answer you want, you may be tempted to make a scene. Just try and get out of the room (and preferably the building) before you kick off.

The unfairness of it all can be incredibly galling - but on a practical level, dignified retreat is usually the best policy.

If you want to try again in a few months time, you don't want the memory of that screaming episode standing between you and promotion.

And finally, try not to resort to emotional blackmail. You might be in financial difficulty, but tearful pleas don't (usually) win pay rises, and they can create a very uncomfortable atmosphere which you then have to work in.

Don't threaten to leave unless you really mean it!

We've all dreamed of that Jerry Maguire' resignation moment when we stand up for our principles and head for the door.

There's definitely a place for that - but it's not in the middle of a pay rise meeting. Pay-me-more-or-I-quit' ultimatums just demonstrate a lack of commitment to your company, and are likely to be received extremely badly.

And you may be shooting yourself in the foot. The cogs of bureaucracy turn extremely slowly - so if a pay rise isn't agreed on the spot, it's worth waiting a few weeks before you jump ship.

If you have a strong case, the chances are it will - eventually - be recognised.

Good luck!

More: How To Get And Keep A Job

Visit The Fool's Savings Centre to help find the best account for all that extra money.

• Have your say: Gas, Electricity, Broadband & Phones message board
• Compare Electricity & Gas providers
• Compare Telephone providers
• Compare car insurance deals

Copyright © 2008 Fool.co.uk - Your Money Team. All rights reserved.