Why you didn't get a raise this year — and what to do about it

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You can't put your finger on it, but something's missing from the year-end rigmarole. The company holiday party is long over – thank goodness – and the canned food drive went splendidly.

You re-enrolled in your company health plan, and your W-2s are on their way. Your annual raise came through … wait a minute!

If you were denied your annual raise this year, you may be beyond frustrated. Being passed over suggests that your manager doesn't value your work or is frustratingly tightfisted. It might hint that trouble is brewing at your company.

Or, even worse, it could be a symptom of larger problems in your industry. If your salary doesn't keep up with your cost of living, you're essentially making less than you did last year.

Either way, it usually feels like a slap in the face from the bigwigs who sign your paychecks.

First things first: In many industries, earning an annual raise isn't guaranteed. And bosses are asking that underlings work harder for their annual pay bump, often requiring that they go above and beyond their duties. "It's a whole lot harder to get an increase for just doing what you do," says Scott Olsen, U.S. leader of Human Resource Services at PricewaterhouseCoopers.

If you were overlooked for a raise this year, you may have the power to reverse your fortunes. Here are four reasons why your boss didn't give you a raise and what to do differently next year.

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1. Your performance fell short.

"The No. 1 thing we see from employers, in terms of how they determine who gets a raise, is it's the folks who stand out," says Mike Cetera, an analyst at Bankrate, a consumer finance company.

If you slacked your way through 2015, don't expect the boss to crack open his pocketbook. Employers anticipated boosting employee salaries by an average of 3 percent in 2015, according to Mercer, a global consulting firm. But they expected to dole out less than 1 percent to the bottom 10 percent of performers.

To better position yourself for next year, get a handle on your boss's expectations. That might involve having a sit-down with your boss to nail down specifics. "Ask for a definitive plan," says Paul McDonald, senior executive director of Robert Half, a specialized staffing firm. "Ask, 'What do I need to do to get to the average or above-average category in your mind, Mr. Supervisor? And if I do that, how will it affect compensation?'"

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2. You didn't ask.

Shrinking violets, it's time to find your backbone. You can't expect your manager to track you down each year with a generous salary bump and a slap on the back. Sometimes earning a raise means meeting with the boss and making your case for a salary increase.

"We advise many individuals just to be proactive – in a nonconfrontational way – to ask for a meeting," McDonald says.

Once your boss agrees to a face-to-face, it's time to start prepping. Don't come in unprepared or overly cocky, McDonald says. Compile evidence on why you merit a salary boost, including a few examples of when your performance went above and beyond. Also come up with a ballpark figure of what your work is worth, which you can find on salary reporting sites, such as Glassdoor.com and Payscale.com.

"You need to go in there and not wing it," Cetera says. "Be prepared to sell yourself."

Keeping a "kudos folder" throughout the year, stocked with positive feedback from clients and brag-worthy performance metrics, can help make this conversation easier down the road.

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3. It's not you, it's them.

Your boss may not have the cash on hand to offer you a raise, McDonald says. "Sometimes supervisors say, 'I just don't have the budget. I'm waiting for other projects to come in.'"

In that case, be prepared to ask for other things, he says. Try negotiating extra vacation time, work-from-home days or a commuter stipend.

Take note: If your lack of a raise is a red flag that your company is failing, you might want to think about pursuing a new job or even heading into a different industry, experts say.

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4. It's on its way.

Some employers are favoring an employment trend that dismisses the annual performance review – and its resulting raise – in favor of real-time feedback, complete with bonuses for a job well done, Olsen says. "Many organizations, in addition to salaries, are looking to things like spot bonuses, or real-time recognition," he says. "It gives them the opportunity to recognize good performance in the moment."

That means you might see a bonus or a substantial salary bump once you've successfully completed a major project or met a team goal.

If missing an annual raise is getting you worked up, "I wouldn't advise anyone to do anything rash," Cetera says. But "if you feel like you're being undervalued or not getting appreciation from your company, there's nothing wrong, and it's probably healthy to explore your options elsewhere."

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