Asking for a raise pays off for most people, survey finds

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Asking for a raise can be one of the most daunting conversations in the workplace, but a recent survey is underscoring the value of advocating for higher pay.

Financial company LendingTree surveyed more than 2,000 Americans in October 2024 and found that 82% of full-time workers who asked for a raise received one, compared to 66% of workers who got a raise without asking.

Of those who received a raise, 51% reported an increase of less than $5,000, while 24% saw their pay jump by $5,000 to $9,999.

For some, simply sticking with their current employer paid off. Only 13% of workers who got a raise did so by changing companies, suggesting that current employers are focusing on retaining the talent they have.

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Instead, 47% were promoted internally, and 45% received cost-of-living adjustments. Additionally, 11% negotiated raises by leveraging competing job offers.

"In challenging economic times, it can be even more crucial for companies to keep their A players, so that could potentially work to your advantage," Matthew Schulz, LendingTree’s chief credit analyst, said in a statement. "It’s important to frame your argument, if possible, around what you’ve done to help the company’s bottom line. If you’re in sales, for example, it can be easy to quantify. For others, it may be more challenging, but it can still be done. The more specific you can be in quantifying your impact, the better."

But not everyone’s pay increased

While raises were common, some workers faced financial setbacks. About 24% of full-time employees reported pay cuts over the past year. Among them, 26% had been laid off or fired and accepted lower-paying roles, while 12% voluntarily took pay cuts to avoid being let go.

Others opted for lower salaries to prioritize their mental health, with 17% citing reduced stress as their reason for a pay decrease.

The impact of these pay cuts varied, but 34% of workers in this group saw their salaries drop by less than $5,000, while 19% experienced steep reductions of $20,000 or more.

Despite these challenges, optimism remained high among employees, with 65% expecting a raise in the next year. When asked how they believe raises are most often achieved, 37% of respondents cited excellent performance, while 22% pointed to promotions and 20% to switching employers.

Men, Gen Z most likely to ask for raise

According to the survey, women are also less likely to ask for a raise. Only 35% of women asked for a pay increase, versus 49% of men. Women and men were a little more even when it came to receiving raises, at 63% and 67%, respectively.

Regardless of gender, Gen Zers (ages 18 to 27) were the most likely to advocate for themselves — 50% asked for a raise in the past year. Millennials were close behind at 49%.

Incentives to return to office

As remote work persists, many employees said they were open to returning to the office – but not without a financial incentive.

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Among workers who don’t currently work on-site every day, 57% said they would consider a fully in-person role if it came with a pay bump. Most would make the switch for less than $10,000 extra annually, though 10% would require at least $20,000.

Tips for effectively asking for raise

Schulz noted that getting a raise is not as simple as demanding one: there’s an art to the ask.

First he said that timing matters.

"If you tell your boss at 5 p.m. on Friday that you want to talk compensation, you’re probably not going to get anywhere. Also, if you know that your company has a policy of only doing promotions and raises at certain times of the year, pushing too hard outside of those windows can be counterproductive," Schulz said.

Schulz also suggested knowing your own worth.

"It’s even becoming less taboo to share your own salary. That makes it easier than ever to have a real, meaningful read on how much someone in your position should be making and where you currently stand in relation to others like yourself," he continued, adding, "Once you know those things, it’s far easier to stand up and ask confidently for a raise."

Lastly, he said it’s important to track accomplishments frequently by taking the time once a week or a couple times a month to write down your accomplishments.

"If you don’t make those notes, it can be easy to forget what we’ve done over time. When that happens, you may undersell how much of an impact you’ve had," he said.