02Tenure
Rule 1 of asking for a raise: don't do it unless you've been at the organization at least a year. Better yet, wait two or three to increase the likelihood of success. Click the next slide to see how other factors affect the likelihood of receiving a raise.
While the majority of people who ask for a raise get at least something of a pay increase, that's not always the case—particularly if you're a person of color. PayScale, Inc.'s "Raise Anatomy" research indicates that while 70 percent of those who ask for a raise actually do get something, though perhaps not as much as they aimed for, the other 30 percent aren't as fortunate. In fact, according to Lydia Frank, vice president at PayScale, "We believe most employers want a diverse workforce and fair pay for all employees, but our research shows that employees who ask for a raise may be getting different responses based on their race." Related: The key to retaining your top-performing employees Frank adds, "When requests and decisions about raises are transparent and rooted in data, employers are more likely to approach each conversation about pay in the same way. In addition, employees are less fearful about asking for a pay increase outside of the annual review cycle when their managers show how decisions about raises are driven by real-world compensation data." Among the 70 percent who got a financial response to their request, 39 percent actually got what they asked for, while 31 percent got less. But while white men turn out to be the group most likely to get a raise, says the report, while women of color were 19 percent less likely to have received a raise than a white man. Worst off were men of color, who were 25 percent less likely to get a raise. In addition, the report adds, "There is weak evidence that white women are also less likely to receive a raise, but these results are not statistically significant." The most common excuse given by employers for not providing a raise is budgetary constraints, with 49 percent pleading a tight budget. But employees aren't fooled, with just 22 percent of workers saying they buy that. And a third of workers say they weren't given any reason at all for being denied a raise, and neither of those findings is good; the report adds that workers who don't believe the reason they're given, or who simply aren't given one, report lower rates of satisfaction with their employer and also say they're more likely to quit. "When employees don't have visibility into their pay, they're prone to develop a strong feeling that they're underpaid and need to look elsewhere to be valued," says Mollie Lombardi, CEO of Aptitude Research Partners "This research shows the need for better processes and better conversations about raises from both the employer and employees to address bias, promote fairness, diversity and—ultimately—a more satisfied and engaged workforce."
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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.