The first thing you should do after being rejected for a salary raise is find out the reasons behind it. Is it because of the company’s budget, your performance, or the market conditions? Ask your manager for concrete feedback and how you can improve your performance to align with their expectations, so you can get that raise in the future.
Salary increase statistics
Salaries are increasing across the US. According to the Bureau of Labor Statistics, civilian workers’ compensation increased by 4.2% from March 2023 to March 2024, up from 4.8% in March last year. Salaries and wages grew by 4.4% in that time frame, down from 5% in the period between March 2022 and March 2023. The amount of benefits increased by 4.5% between March 2023 and March 2024.
The most common reasons to reject a salary increase request
The most common excuse is that you’ve been benchmarked. This means that according to the company, they are already paying you what you’re worth. If that’s what they tell you, try to better understand how the company does benchmarking.
Most employers use an hourly payroll calculator to determine the cost of a raise. If that cost is prohibitively high, they’ll turn down pay hike requests. Still, ask as many questions as you can to understand why the company benchmarked you and what knowledge, skills, or experience you must possess to qualify for a raise.
If you feel the benchmarking was unfair, you should proceed to research the market and talk to recruiters to find out what certain positions are paying.
Assess your performance
Review your performance and your contributions to the organization to find areas of potential improvement or if you can demonstrate extra value. If your manager tells you your performance didn’t warrant a raise, ask how they are measuring your performance. This will probably include discussing your tasks, role, and achievements.
Ask what it would take to be considered a good performer. Frequent interruption at the workplace is the leading cause of reduced productivity. According to a recent study by the University of California, employees’ workflow is interrupted every three minutes! It also takes the average worker more than 23 minutes to get back on track.
Across industries, the typical employee is only productive 60% of the workday. Research in 2024 shows that this figure is much lower for office workers – on average, they are only productive for 2.5 hours per day.
If you’re told your salary is high compared to your coworkers, try to shift the focus to your own performance. Link it to benchmarks and market rates for your position.
Make a list of your specific accomplishments that you can talk about and how you’ve added value to the company.
Consider alternatives
After you’ve found out why you were rejected, you can proceed to evaluate your alternatives. You could try to negotiate other forms of compensation, such as more flexible work hours, additional benefits, professional development opportunities, or additional vacation days. Ask for the requirements and a timeline for a future salary review or explore options at other companies.
You could also consider a better title, training opportunities, joining another team, setting clear goals and milestones, applying for a promotion, taking on more responsibilities, updating your resume, networking, or contacting recruiters.
Have a Plan B
You need not only a main plan but also a backup one. Make sure you communicate your expectations respectfully but clearly. Instead of becoming bitter, let the rejection motivate you to improve your skills, demonstrate your value, and take on new challenges. This can strengthen your position for advancement opportunities or future salary increase requests.
The rejection should not affect your attitude, work ethic, or work relationships. Show your boss and your coworkers that you are a reliable, professional, and valuable team member. This will help you maintain your credibility, reputation, and network, and you will eventually get that raise.
