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Get a raise in the recession

People are afraid of asking for a raise now more than ever. In fact, the recession is providing a good excuse for employees to not ask for more money, and for companies not to give any. But high performers can and should be compensated.

To get a raise, you first need to be aware of the three contingencies raises are based on:

Past Performance (and the learning curve)
All jobs have learning curves. What took you eight hours a day at the start of your position will slowly taper off until you start to get bored six months in. Good employees realize this and try to shorten the learning curve as quickly as possible by completing stellar and quality work right away. How quickly you’re able to shorten the curve often determines how quickly your first review and raise will be.

Future Opportunity (and taking on more responsibility)
Once you master your initial set of responsibilities, it’s time to start looking for more. You should first look for the low-hanging fruit; tasks that have been overlooked in which you can easily shine in. This might be tracking and measurement, or the suggestion of a weekly meeting. Whatever it is, you should make sure your superiors know you are looking to do and be more.

Second, you should also be strategically thinking about your next step and title in the company. If you want to expand your design role to include rendering in addition to drafting, you should try to take on as many rendering projects as you can before your review. New titles (and the accompanying compensation) aren’t awarded to people who haven’t already been doing the work. In other words, don’t wait for the title to impress.

Many companies won’t have such opportunities for advancement, however – either they aren’t willing or aren’t able – and that’s when you should start looking for a new job.

Market Value (and how adaptable are you)
There are a ton of social media jobs out there right now. There are also a lot of people who can’t execute on social media. Which leaves the people who can in a great negotiating position.

For those positions that don’t carry such great demand – say, journalists – you’ll need to figure out how to keep yourself and your position relevant. This doesn’t mean saving the entire journalistic profession, but being creative in the responsibilities you take on. It’s good to think of yourself in both positions at once, however, since the market varies and changes from year to year.

Once you understand the three contingencies, it’s time to put together an action plan:

1. Be proactive. Bad companies will put off your review on purpose. Good companies will too. There’s no reason for employers to pay you more if you’re not asking for it. Be proactive in checking in with your boss throughout each month, and scheduling reviews often. It’s often helpful to schedule your next review at your current one (“I’d like to meet again in three months to talk about the possibility of a new title and an additional raise.”) When you set up a meeting with the expectation that you’ll be discussing a raise, the conversation becomes easier.

2. Research and prepare. Even if you don’t show your boss, prepare a document of your past accomplishments and proposed future responsibilities. This gives you a list of relevant talking points during your meeting. In that document, include a salary number and back it up with research on what other people in similar positions are making. I recommend listing the number a bit larger than you expect so that you have some negotiating room and can meet your employer in the middle.

3. Practice. Just because you have everything written down doesn’t mean you won’t stumble in the meeting. Practice phrasing some of your key accomplishments and especially practice stating how much salary you’d like. Just say it aloud a few times to make it less scary.

4. Negotiate. Negotiating for a raise is incredibly hard, made even more so by the fact that your boss has probably just finished a glowing review, and it seems like an especially inopportune time to ask for more. (Or is that just me?) But not only is it the right time, it’s the only time. Go for it! Some employers will tell you right away whether the amount you’re asking for is something they can do, others will want to check and get back to you. Be prepared for either possibility.

5. Negotiate again. It’s very rare for a company not to be able to give a high performer a raise, even in the recession. When more money really is impossible – say, when you work at a University and they’ve declared that not only will there be no raises, but there will be pay cuts – you should still ask for more. You don’t have to ask for more money, but make sure you’re asking for more of something.

For instance, a smart woman I know negotiated additional paid time-off in lieu of more zeros on her paycheck. Just be careful that you’re not setting a precedent that the ability to work from home, gain additional stock options, or attend a conference is how you want to be compensated in the future. Unless, of course, it is.

What do you think? Is it difficult to get a raise in recession? If you’ve been successful, what were your strategies?

By Rebecca Healy

My goal is to help you find meaningful work, enjoy the heck out of it, and earn more money.

20 replies on “Get a raise in the recession”

Hi Rebecca – I love this post! You are 100% right on on each point!

I specifically like Research and Prepare! I write about it regularly and believe that it is the single most important tactic that most people neglect or do poorly.

All that said, it is still a difficult proposition to expect a raise in these times and I will pass this post on to my network as it is the best advice I have read on this topic!

Thank you – Joe

@Rebecca – I think this is a solid and logical approach for people in pursuit of a raise to take. I think there’s also something to be said for people that go in knowing they deserve one, and as you’ve mentioned, the research/past experiences to demonstrate that value. But, the ‘knowing’ will play an important role in the process as well.

I’d also add something Penelope is a proponent of (and I believe you’ve practiced this to some extent as well), and that’s to always be job searching. I try to -always- have a contingency plan in place. Being able to go to the negotiating table with other offers on the table is usually something (that if done tactfully) is something you can leverage during the process. Plus, at least for me, it helps relieve the fear and pressure of something going wrong b/c I know there’s always another option.

Rebecca- You make a great point. Money isn’t the only way to be compensated. In a previous job, there wasn’t money for a raise, but there was lots of money for professional development. I used that to my advantage and was able to go to conferences and take classes. I also let my boss know that I was interested in learning more about the business, and in furthering my education.

By the time I left that job after 3 years, I had learned parts of every job in the department, my boss wrote a glowing recommendation for graduate school, and she recommended me for a new part-time job that allowed me to go back to school full time.

Raises come in all forms, you just gotta ask.

@ Ryan – That’s an important point, and while I don’t think you should always be looking for your “next job” you should always be thinking about your next step. Subtle difference in the phrasing, but an important one. Having an offer or a plan if things aren’t going well in your current position is the best insurance policy. Thanks for the comment!

@ Monica – Thanks so much for sharing your story. it’s great to hear of other people’s success in asking for something else besides money. I still believe asking for a raise is important since it determines how big your salary will be over your lifetime, but if it’s truly impossible or really not that important to you, there are alternatives which can also be beneficial.

Even though my boss and I are pretty good friends, discussing a starting salary when I was hired and then a raise three months later (I had been working from home full-time for those three months, and part-time for a few months before that — but my boss wanted me in the office and I wanted to be there too) so I could afford to move back to the city was extremely difficult.

I trust her, so I explained what my financial situation was and suggested she start with a number and then I would say why that did or didn’t work for me. It turned out we were thinking of the same number. This probably wouldn’t work for more traditional work places, but I started out making very little and ended up with a 20% raise after three months because I made myself invaluable.

At a small start-up, this is pretty easy to do and potentially becomes increasingly difficult as the company you work for gets larger. I definitely agree that you shouldn’t use the economy to gauge when to ask for a raise: it’s totally dependant on your performance. Also, performance = results, not effort.

@ Cassandra – Love, love your story – thanks so much for sharing. I work at a start-up as well, and I’ve found that it’s very easy to move up quickly and make sure you’re not bored; that’s one of the reasons I like it here so much. I don’t feel the need to job-hop to take on more challenge. And great reminder that performance = results, not effort. Sometimes you can be working really hard, but if you’re not working smartly, it’s all for nothing.

Great points! My company (gov) has sent out a memo that there will be no raises this year — so thanks for covering that. It saddens me because I’m doing the work of multiple people after layoffs.

But with our time off so regulated (1-5 yrs 3 wks, 5 plus, 5 wks) I don’t know if they’d spring for something like that either.

I do love my job however and I’ve been brainstorming on how to be more valuable and necessary. For more compensation, yes, but mostly to not be layed off!

Looks like wall street is still getting their raises while we have frozen wages to 2007. I know life isn’t fair, but this is beyond ridiculous!

Rebecca, I like the points about staying relevant and being proactive.

I keep relevant by finding new ways my talents can help the company. During the the slower pace, I researched new strategies and worked on improving my weaker skills.

Another important point: be confident.

@ Natalie – Wow, doing the work of multiple people after layoffs? Good thing you love your job : ). As far as PTO goes, you’d probably be surprised how many companies make exceptions to the rules, especially for high performers. Good luck and thanks for sharing your story : )

@ Linda – I can’t imagine that the wages are still frozen from 2007! Sounds like the system has been broken for awhile… eek!

@ David – I love that you worked on improving your weaker skills; a lot of the time we focus on strengths and showcasing those, but it can be just as valuable to fill the holes on the weakness side, thanks!

Hi Rebecca

I just found your blog and I love it. Plus I love this post! You are very clear in all of your points. Like David I always try to work on my weaker skills. I make a list for myself of things that I would like to learn and improve my skills.

I also try to do things that are double positives like start a blog to improve writing and learn new technology. All of these will help out with my main job.

Best wishes,

Janie

This is all good advice, but I think the last step you mention is being willing to jump ship if that’s what it takes.

A recession is only a bad thing if you’re not one of the best people in your field. The best workers seem to be suceeding even more now than when times weren’t so rough: http://bit.ly/rqXtk

Mike

@ Janie – Thanks so much for the kind words. I love the tip about starting things that are double positives – fabulous tip!

@ Mike – Definitely agreed. I actually do say that under the last paragraph under Future Opportunity. You’re in a much better position if you can leave.

This is phenomenal advice. I’ve actively been doing most of your suggests as a matter of personal growth already – it’s kind of empowering to see you write about how it worked for you.

By the way I’m completely not in social media – I’m in real estate – but basically all of the things you lay out still apply. I’d say the market demand for your skillset can be the toughest thing to judge, especially in this economy. I know I can rock it at another company or another position, but whether someone at those other companies is willing to hire me right now is hard to gauge.

Great tips, Rebecca, especially for those just getting started in the “real world.” I know I haven’t always been as proactive in my career development as I should have been, and it’s cost me, both in terms of dollars and job satisfaction. It’s still very difficult for many firms to justify raises in this market, but just having that conversation with your boss shows that you are serious about your goals and advancement opportunities.

All very good advise and I plan on utilizing it when I ask for a raise AGAIN at my job. I have been here for almost 4yrs and have asked for a raise every year and the answer has been since the recession we just don’t have the money; which boggles my mind since we were able to hire more staff than we’ve laid off. I have taken on 3 peoples work load and was just praised at a company luncheon on my performance. I’ m thinking that it is the perfect time to bring up the topic of compensating me for the work that I’m doing. I only plan on asking for an 8% pay increase and an extra week of paid time off; considering how below the market my current salary is this shouldn’t be an issue. Wish me luck! Thank you

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