Getting a Raise in a Terrible Economy

Convincing the Boss You Deserve More Money is Not an Impossible Task

Feb 9, 2009

Unemployment is soaring. Companies are closing. But you want a raise? Don't fret. It is possible. You just have to sell yourself like never before.

It may seem unnatural for employees to ask for a raise these days. After all, according to the U.S. Labor Department, the country lost nearly 600,000 jobs in January alone. That pushed the U.S. unemployment rate to 7.6 percent, a level not seen since 1974. Pres. Barack Obama has been quick to warn the country that as bad as things are now, the odds are good that the economy will slump even worse before it begins to rebound.

Many employees are grateful just to have jobs, even if they're not making as much money as they'd like.

But the bad news doesn't mean that it's impossible for employees to earn a raise this year. They just have to justify that raise more than in years past. Besides, the one way for employees to guarantee that they won't get a raise is to not ask for one. In this economy, employees should not expect their bosses to come to them with a raise without a little prodding.

Writing in the Wall Street Journal, reporter Dana Mattioli interviewed several management experts who advise hardworking employees to ask for a raise if they want it, even if the economy's troubles don't lessen. But these employees better be ready to sell themselves to their bosses, these experts say.

According to studies by Hewitt Associates and Watson Wyatt Worldwide, raises this year will be reserved for companies' top performers. Employees, then, should take an honest look at themselves and decide if they rank as one of the most valuable performers at their companies. If they don't, employees probably won't get that raise.

The Wall Street Journal story recommends that employees who do consider themselves top performers make a list of their recent accomplishments and present this list to their bosses. If the list is impressive enough, and if any of the accomplishments actually resulted in cost savings, employees might just get that desired raise.

Career experts also advise employees not to expect too much, even if they do qualify for a raise. Money is tight at most companies. Even those firms that have avoided layoffs or firings are struggling to keep costs down as the economy's woes only intensify.

There just isn't as much money to go around for raises as in years past. Employees, then, should expect smaller raises.

The key to getting that raise is to be confident. Employees should remember that companies are eager today to hold onto their best workers. Companies are also asking their top performers to do more as they shed other workers.

Because of this, companies might be willing to spare at least a token amount for a raise. Employees will never know, though, unless they ask.

The copyright of the article Getting a Raise in a Terrible Economy in Career Advancement is owned by Dan Rafter. Permission to republish Getting a Raise in a Terrible Economy in print or online must be granted by the author in writing.