These are nervous times ... to be talking about your salary. The word
"recession" is being used more frequently, more companies are announcing
layoffs and staff safety is suddenly a major concern.
Yet you probably have been working more hours not fewer, and know your
performance and results exceed what should be expected of you. Should you
stay mum when raise time comes around? No, says Gregory Northcraft,
professor of management at the University of Illinois. "Just like in the
stock market, economic downturns present opportunities if you can figure
out a way to make yourself part of the solution instead of part of the
problem," he says.
Mr. Northcraft, co-author of the book "Get Paid What
You're Worth: The Expert Negotiator's Guide to Salary and Compensation," (St.
Martin's Press, 2000) offers these tips on how to ask for a raise in uncertain times.
What's the best strategy for asking for a raise
right now without your boss kicking you out of his or her
office?
When a company is laying people off, it may not be the best time (for
salary negotiation), but there is no reason not to raise the topic. The key
is to have a conversation with your boss.
Career-wise, it may be an excellent time to position yourself for a
raise when the money becomes available again. You can ask for added
responsibilities or a new job title. You're taking a risk, of course, that
you may be doing more work in the short term for the same pay, but you've
put yourself in a strong bargaining position down the line. After that, if
they don't come through, then to be honest, I'd be looking for a new place
to work.
If money isn't being handed out, you could ask instead for non-pay
benefits, such as additional training or vacation time.
Should you look for a new job offer as a way of
leveraging a salary increase?
If you want a raise -- at any time -- you need to present a convincing
case that what you're already doing is worth more than you're already
getting paid. Having an external job offer is an obvious way to build up
your case: If someone else offers you more, that sounds like evidence that
you should be getting paid more by your current employer. The danger is
that if you use the offer as a threat, you need to be willing to carry
through with it and take the new position. Otherwise, if it's an empty
threat, you may wind up worse off because now your boss knows there is no
reason to give you a raise because you aren't going to leave. A better
strategy is to put together evidence showing why you already deserve a
raise.
What sort of evidence?
First, point out your job characteristics. Maybe you can marshal
evidence that the characteristics of your job have changed. Maybe it has
expanded; maybe you have taken on duties that were not part of your
original job description. Or maybe similar jobs at your company have been
reclassified into higher pay brackets and you can make a case that yours
should be as well. The point you should try to make is that others are
getting more pay for the same work, or that others are getting more pay
even though you do more work.
Or second, you can argue performance-based merit. Tactfully find out
what your colleagues are making. If everyone doing your job gets paid the
same but you are the top performer, you deserve more pay. If you are
performing just as well as people who are getting paid more, then you
deserve more.
How do you make your case to your
employer?
One of my executive students has a saying, "The person with the most
information usually wins." If you present a convincing case, you can help
the other side see you deserve what you want. Put together a comprehensive
list of your duties and successes you've had with your work.
The best reason for your boss to give you a raise if you're a great
employee is to keep you happy, productive and loyal to the company. That's
in the best interests of everyone.
When you're talking to your boss, it's critical to keep the tone
friendly. This should not be an accusation or a fight. It should be two
colleagues working together to solve a problem -- how to get you a raise.
Keeping that in mind may help you maintain an even keel emotionally.
Any other strategies?
Perhaps the best long-term strategy is to put the ball in your boss's
court. Ask the question, "What would it take for me to get a raise?" If
your boss can explain what the rules are, you can tailor your ongoing
behavior to qualify. If you use this strategy, don't be afraid to be clear
about exactly what you want. There's no point in asking how to get a raise,
doing what they say, and then finding out it's only a 2% raise. If you want
10%, then your question should be, "What do I need to do to get a 10%
raise?" You might not get it today, but at least you'll know how to get
it.