Asking For a Raise in a Recession

If the economy is bad and getting worse, then you need to take that into account when you ask for a raise because your employer may find that you are too expensive when compared with the unemployed who would love to have your job. As explained in the book "Gainful Employment," your compensation is a function of your value to the employer. By applying the quality that I describe in the book as selfishness, you "demand" that your employer recognize the value that you provide. When you provide an incredible service that profits the employer and you are underpaid for the service that you provide, then it does not matter that the economy is going from bad to worse, because the employer will not be able to find someone who provides as much value as you do since you have exhibited so much growth.

The truth is that you can ask for a raise any time you are worth it, though please give consideration to the times at which an employer typically gives raises -- what I mean is that if your employer often gives increases at the end of a fiscal or calendar year then you may want to ask on their schedule.

In my own case, I asked for a raise and received one because the services that I currently offer my employer are in excess of the requirements of the job. Because I am providing my employer with services that meet their needs but are beyond what we agreed I would do, I need to be paid more to continue to sell my services to this employer.

So, how do you ask for a raise? You prepare. You prepare by doing the job you are supposed to do -- and do it well. You prepare by taking on additional responsibilities.

But what if you just do a good job? Should you get a raise because you do a good job? The answer is no. You are already PAID to do a good job. If you don't do a good job, you deserve to be fired. What makes you deserve a raise is to take on additional responsibilities while still doing what is expected of you.

If you were hired to be a receptionist but your position has grown to include accounts payable and collections, it seems likely that you are being paid less than you deserve. If you were hired to manage a storefront that has less than stellar sales and is competing in a shrinking market and all you have to work with are unmotivated sales staff but you take the business and make it very profitable, then consider the degree to which you have exceeded expectations -- that is by how much you should ask for an increase. If you were hired, as I was, to wear one "hat" (job responsibility) and now you wear five or six "hats" (as I do) because your company's business needs keep expanding, then ask for what you are worth.

While it is difficult to ask for a raise in recession due to the fact that many employers are fearful of the uncertain future, if you are clearly worth a raise, ask for one after you consider what your position is really worth to the employer.

How?

Survey jobs in your field. Search a site like Monster.com or Careerbuilder.com and see what other employers are paying for the services that you now provide. By seeking other jobs to compare with yours, you will have an idea of what you could charge for your services because you will see what you would be paid if you take a job with one of the employers who need help. Once you have an idea of what you are worth and what you can get, then you'll know how much the disparity between what you earn and what you are worth actually is. Also, do not hesitate to take this information to your boss and have an honest discussion with them about the reality of your compensation. Make sure to explain that you don't want to leave, but explain that if the company wants someone who can take on all of these additional responsibilities then they need to compensate you at a reasonable rate.

So, what about your compensation?

Well, consider that maybe more money is not the only compensation that you can accept. Maybe you want training. Maybe you want more time off. Maybe you are willing to accept a bonus instead of a wage increase. Try to work with your employer to find an increase in compensation that works for both of you.

Lastly, realize that it might take a lot longer to get an affirmative reply than it used to. Employers are afraid of the uncertain, just as employees are. If you want more money, you need to be prepared to make a convincing argument to your boss, only because you might need to talk to your boss first so that you can then talk to your boss's boss before you get to the real decision maker who just so happens to be your boss's boss's boss.

There is no harm in asking for a raise when you are worth it. If you clearly explain why the employer has benefited by your services and why you are asking for appropriate compensation for all of the extra tasks you've taken on, then you have a chance that the employer will agree, and that is a chance worth taking.