When is the best time to ask for a raise?

The best time is before your annual performance review, or after completing a major project. Avoid asking during company-wide budget freezes or immediately after bad news.

How much of a raise should I ask for?

Industry standard is 5-15% for a cost-of-living increase, 10-20% if you've taken on significantly more responsibility, and up to 25%+ if you're underpaid relative to market rates.

Should I send a salary negotiation letter or ask in person?

Both. Send the letter 2-3 days before a scheduled meeting so your manager has time to review it. The letter is the formal record; the meeting is where negotiation happens.

What if my manager says no to a raise?

Ask what it would take to get to your target salary, and set a specific timeline. Many raises are approved on the second ask. Follow up with a new letter after 3 months.

Is it okay to mention competitor salaries in a raise request?

Yes, it's one of the most effective arguments. Back it with data from Glassdoor or LinkedIn. Frame it as market awareness, not a threat.

Manager Said No to Your Raise? Here's What to Do Next

A rejection is not the end of the conversation. In fact, it is often the beginning of the real negotiation.

Important

Research shows that 44% of people who were initially rejected for a raise received one within 6 months after following up with a structured plan. Most people just accept the no and give up.

Step 1: Do not react - respond

Your first instinct might be to argue, get emotional, or immediately accept and walk away. Do neither. The right response in the moment:

What to say

“I appreciate you being direct. I understand there may be constraints right now. Can we talk about what it would take to get to [target salary], and what timeline we're looking at? I'd like to put together a plan.”

This does three things: it shows maturity, it keeps the conversation open, and it starts turning the rejection into a roadmap.

Step 2: Diagnose the type of “no”

Not all rejections are equal. Understanding why matters:

Budget freeze (timing issue)
The money does not exist right now. Not personal. Ask for a specific date when it can be revisited - ideally in writing.
Performance gap (qualification issue)
They do not think you have earned it yet. Ask for specific, measurable criteria. Get them in writing. Hit them. Then ask again.
Policy/process issue
HR has bands, headcount rules, or annual cycles. Ask if there is an off-cycle review process. Many companies have them but never advertise them.
They think you won't leave (leverage issue)
The most fixable. Start quietly interviewing. A competing offer changes the entire dynamic.

Step 3: Send a counter-offer letter

Within 24–48 hours of the meeting, send a written counter-offer. This does four things:

1Creates a paper trail showing you are serious and professional
2Summarizes the agreed-upon path (goals, timeline)
3Keeps the conversation alive without being pushy
4Makes it harder for your manager to "forget" the conversation

Generate your counter-offer letter

Our AI has a dedicated “Counter-offer” variant - polite, firm, and solution-oriented. Free, 30 seconds.

Generate counter-offer →

Step 4: The 90-day plan

If your manager agreed to revisit in 3 months, treat this as a second chance - not a consolation prize. Here is the plan:

Week 1

Send the counter-offer letter. Document all agreed criteria in writing.

Week 2–8

Over-deliver on every criterion they mentioned. Document everything.

Week 10

Send a short email: "Quick update - I wanted to share my progress on the goals we discussed." Attach evidence.

Week 12

Schedule a follow-up meeting. Come with data and your updated letter.

When to start looking elsewhere

If your manager cannot give you a clear timeline, measurable criteria, or a concrete next step - that is your answer. Not all rejections are worth waiting out. Signs it is time to look:

✗ No specific timeline given ("maybe next year" is not a plan)
✗ No clear criteria to meet
✗ Same conversation happened last year too
✗ You are already 20%+ below market rate

Getting an external offer is not burning bridges - it is information. And often, it is the only thing that moves the needle.