How To Ask For A Raise During Difficult Economic Times
There’s a reason why we’ve been focusing on the job market in various columns over the last several months. It’s because the jobs of millions of workers across the country are being affected as a result of this economy. It’s important for me to try to help those who are looking for a job to find one, and those who have a job make the most of it. One area of particular concern for those who are currently employed involves compensation. On the one hand many people feel that they should just be content to even have a job given the massive layoffs and downsizing of corporations across the board, yet on the other hand, many workers who have been with a particular employer for a number of years, or who are picking up the slack, taking on additional workload as a result of the downsizing, feel that they have earned the right to ask for more money. The question many people face is whether or not it’s appropriate to ask for a raise during these difficult economic times? It’s an excellent question, and the answer is both “yes” and “no”. It all depends on your particular situation. The key, then, is that you do your research before even thinking about approaching your boss for a raise.
- Research your company’s financial status. It’s extremely important to take into consideration your employer’s current financial position. Put yourself in your manager’s shoes and think of the problems, if any, they’ve encountered because of the recession. If you work for a publically traded company, the financial information is more readily available as it is public record. If you work for a private firm, that information will also be private, but don’t rely on hearsay. Research the company website, press releases, news, and speak to your managers about the state of the company. This information will help you understand whether or not the company you work for is in a position to grant your request for a raise.
- Research salaries of comparable positions in your field. There are a variety of on-line services for researching salaries based on the type of job or position and the area in which you work. For links to these sites you can visit my website at www.mgtunon.com. Keep in mind that these services may provide you with a general rule of thumb, but it’s not the kind of data that will necessarily get you the raise. That information comes from you and your performance record.
If, after careful research, you consider that it is in fact appropriate to negotiate a raise, you’ll want to prepare a plan for how you will go about it. The first thing you must do before developing your plan is understand that you’re not going to walk in to your boss’ office and tell him or her that you want a raise. Instead your challenge is to present your case to clearly explain why you deserve a raise. The second thing to remember is to not build your case solely around the money issue because managers want to know that you’re thinking about the needs of the company as well as your own.
- Know how much of a raise you will ask for. You may have researched what others in your field are earning, but you must also consider personal information like the number of years you’ve been in the industry as well as how long you’ve been with your current employer. The hardest concept for most people to accept is the difference between what they would like to earn versus what they deserve to earn. Be as objective as possible when determining the amount that’s right for you.
- Present your case in an organized and factual manner. Once you’ve determined how much of a raise you feel you’ve earned, it’s time to prove it. Every position is based on a series of objectives and expectations. You must demonstrate to your employer that you have not only met those objectives, but exceeded them. Keep notes of your progress and accomplishments so you can clearly and professionally present the facts. Don’t be afraid to highlight your own accomplishments. Quantify those accomplishments in terms of your organization’s goals and needs. If you have saved the company money, quantify it. If you have earned the company money, quantify it.
- Set an appointment with your boss to discuss your raise. When you’re ready to negotiate your raise, ask for a specific meeting time to discuss the matter. It’s recommended to not just pop in to his or her office unannounced. Give the issue the importance it deserves.
- Have a contingency plan. Let’s face it, despite your best effort, you still may not get the raise. If that’s the case you may be able to negotiate a different type of compensation increase such as additional benefits, insurance coverage, or vacation time. It’s also a good idea to ask your employer when it would be appropriate to revisit this topic in the future.
Don’t be afraid to broach the subject of a raise with your employer if you’ve determined it is appropriate simply because of the economy. Eventually, the market will recover, and employers will want to retain their best performing employees. This is actually a good time to state your case.