Understanding when and how to ask for a raise can be a daunting task, especially when you're trying to balance your expectations with what's reasonable and attainable.

If you’re looking for a specific number, we have bad news. How much of a raise you should ask for depends on a lot of factors, like:

• The job you have
• The industry you work in
• How much experience you have
• The responsibilities and skills you possess
• The economy
• Where you live and work
• What your company can pay

... And the list goes on.

However, this doesn’t mean all hope is lost! You can figure this information out. And in this article, we’ll help you do just that!

In this article, we will delve into what constitutes a good raise, the average raise after one or two years of work, and what's considered a standard or typical raise percentage.

Whether you're contemplating how much of a raise to ask for after 1 year, what a good annual raise looks like, or the average raise percentage in your field, this guide is designed to equip you with the necessary insights and strategies to confidently navigate your salary negotiations. Let's dive in.

Start here: What is the average raise percentage?

When you’re asking, "how much of a raise should I ask for?" it's a good idea to start by looking at the average raise percentage.

However, we should note that the average raise percentage isn't a one-size-fits-all answer. It can vary based on factors like your industry, location, the economic climate, and your personal performance. Let's break it down by a few different factors to give you a clearer picture.

Annual raises

For most U.S. employees, the average annual raise hovers around 3%. Therefore, if you've been working at the same company for a year or two, asking for a 3% raise aligns with this average.

Looking ahead, it's anticipated that U.S. employers will increase their compensation budgets to offset inflation. In 2024, the expected raise is about 3.5% for merit-based raises and 3.9% for total salary increases for nonunionized workers. Again, this will depend on your company and industry, so make sure you do more research before discussing numbers with your boss.

Performance-based raises

If your performance has been exceptional this year or quarter, you might be in a position to negotiate a higher raise. Research indicates that employers who reward employees exceeding expectations might offer an average merit increase of 4.7%.

As a top performer, don't hesitate to ask for more than the standard raise percentage. Your hard work justifies this request.

Industry-specific variations

Some industries, like technology and healthcare, often offer higher than average raise percentages. This is influenced by factors such as the demand for specific skills, the industry's profitability, and competition for talent.

When considering how much of a raise to ask for, it's important to factor in these industry-specific trends. What is a good raise in one sector might not be in another.

So, how much of a raise should you ask for?

Now let’s dive into the nitty-gritty. Here are some things you can do to help determine how much of a raise you should ask for:

Factor in top performance/achievements

Your performance and the value you've added to the company are worth a lot.

Have your responsibilities increased? Did you exceed targets or contribute significantly to the bottom line? These achievements mean you can ask for more than the average raise. If you've consistently been a top performer or taken on additional tasks, your raise should reflect this.

Do your homework first

Going into the conversation, make sure you know what you should be earning. Speak to people in your industry, and use websites like Glassdoor to see the salary ranges that people in your position typically make.

We’re talking about getting objective data here. If you’re going to ask for a raise, make sure that you have concrete numbers to back it up.

Know what your company can pay

Knowing average raise rates and what other people at your company in your role make helps you set reasonable goals, but you may make less if your company can’t afford to pay you more. If that’s the case, do you best to get an understanding of your company’s pay ranges and negotiate based on that.

Your past raises and how long it took to get them can help you figure out if your desired request is going to fly.

For some companies, giving a significant raise every few years is more feasible than small, frequent ones. Likewise, some companies like to give raises across the board, while others are more open to performance-based compensation. Know what you’re heading into before you ask.

Go job hunting

Interviewing with other companies can help give you a reality check on how much your skills are worth. And that reality check could go in either direction— you might find you can’t make as much as you thought, or that your skills are more valuable than you realized!

Remember, organizations often have more freedom to adjust starting salaries for new hires than they do for existing employees, so this information can be a powerful tool in your negotiation. If you’re able to secure another offer, you will have the option of using that to leverage a better raise at your current company, or taking the new job and the pay increase that comes with it.

You’ll likely be able to negotiate for a larger raise by if switching jobs. To learn more about that, check out our article on average salary increases with new jobs.

Time it right

Don’t spring the raise conversation on your boss. Give them some hints ahead of time by asking about how promotions work, or getting their feedback on your performance outside of the company’s review process. This gives your boss time to consider how they can keep you happy and what they can realistically offer when you come to them asking for a raise.

Also, make sure that when you do ask, you’re coming off of a month or two of amazing performance. You don’t want to ask your boss for a raise right after you miss a sales goal or deadline... They’re not going to want to give it to you.

Finally, if you can, try to make your request when there’s still an opportunity for your boss to get it approved. If budgets are set at the end of the fiscal year, schedule your meeting to ask for a raise before it ends.

Ultimately, getting a good raise hinges on knowing what you’re worth and working with your employer to get as close to that number as possible. If you’re looking to attract recruiters so that you can get a better read on how much you should be making, check out our LinkedIn Review. You’ll get instant, personalized feedback on how to make you profile rank high in recruiter searches so that they come to you for interviews.