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During an economic downturn, business still goes on. Sure, the purse strings may be pulled in tighter, but employers that remain in operation continue to deliver products and services.
And if you’ve survived layoffs and are still employed, chances are that your workload has increased as you take on new and additional duties in addition to your prior tasks.
If you’re feeling underpaid or undervalued, is it an unthinkable crime to ask for a more money? Not necessarily.
When the economy goes south, workers believe compensation increases are out the window, and in many cases that is true; but even if there are furloughs, layoffs, or a catastrophic corporate restructuring, in some circumstances a salary increase may be both possible and justified.
But a serious word of warning – if you do decide to ask for an increase outside the normal compensation cycle (i.e., end of year performance appraisals), you need to proceed with extreme caution. Asking a company to part with its money during a recession or any hard times comes with inherent risk. Here are eight factors to consider:
Factor 1 – Know The Risk. Asking for a raise at any time is gutsy; asking for a raise during a downturn might come across as insensitive (at least) to the current economic situation. If you don’t play your cards right, it could backfire. Not only might your request be refused, but there could be long term consequences in terms of your perceived value to the company or in terms of being viewed as a malcontent.
Factor 2 – Read The Tea Leaves. Perform an objective assessment of the economic landscape and your company’s position in it. If your company is having serious business challenges, use discretion in your approach. For example, if the company is undergoing salary freezes, payroll cuts, or furloughs, it may not be the best time to ask for more. However, if those same changes force you into a position where you are working much longer hours to keep the company afloat, the company may be amenable to your message. Consider the subtle nuances of your situation.
Factor 3 – Know Your Market Value. Do a compensation assessment; this should include current market salary research for your specific position, field, region, and experience level. If your compensation package is at or above market, a request for an increase is not going to be well received. If you’re below, you may have a case. Use validated sources like PayScale that provide an accurate reflection of actual market trends. Prepare to share this data with your boss as part of your pitch.
Factor 4 – Consider Your Benefits Package In Your Request. Remember, your compensation is much more than the raw base salary figure, your total compensation package includes additional benefits such as insurance, bonuses, profit sharing, and other perks. Delve into the fine print and make sure you understand how you stack up. Your $80,000 a year may already be better than the $100,000 market average if your total package includes lots of extra goodies, such as a health insurance plan that is 100% company-paid.
Factor 5 – Be Honest About Your Value To The Company In The Moment. If you’re a top performer whose expertise has been historically beneficial to your employer, you may have a bit more room to negotiate, even during challenging times. However, if your business is in cost-cutting mode, one day your role is essential and the next day it might not be viewed as such.. Think about how the change in situation impacts your immediate value and be prepared to defend your assertions that you’re essential.
Factor 6 – Timing, Timing, Timing! If you are absorbing the work of departing employees, or your duties have rapidly changed, you are in a more advantageous position to ask for an increase. If it seems you’re attempting to take advantage of a bad situation, your request will be denied and you may put yourself on shaky ground.
Factor 7 – Take A Collaborative Tone In Negotiations. Have an evidence-based conversation with your supervisor and/or human resources, and arrive armed with a well-researched pile of metrics that demonstrate market value and that show how the company will come out ahead by investing in you. Don’t threaten to quit (explicitly or implicitly) if you don’t get a raise – you could be an easy mark for the next of layoffs.
Factor 8 – Keep It Confidential. It’s common sense not to talk about delicate contract negotiations with your co-workers. If your employer ends up giving you an increase, and your coworkers hear that you received a raise, there’s a chance that they’ll ask for the same and put both your boss and you in a very uncomfortable position, while breaking trust. Don’t breathe a word.
Philip Roufail contributed to this article.
Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.
