Get a raise even in a tough economy

MarketWatch

WASHINGTON — As companies cut employees and freeze wages, the future may seem bleak even to those workers who still have a job. After all, bills keep rolling in, and many have lost significant investments in the markets. A salary increase could come in mighty handy.

Though economic circumstances may appear to have stacked the deck against you, there is room for raises for those workers with outstanding value and a fair amount of finesse when it comes to negotiating, experts said.

Especially during this anemic economy, timing is key. The best time to ask for a raise is shortly after an accomplishment, said Cynthia Shapiro, a career and business strategist based in Los Angeles.

“Most employees wait for a review period. But the best time to do it is right after you do something really great, or right after you get kudos,” Shapiro said. “If the company just had big layoffs or lost a major client, that is not the right time.”

Here are five things you’ll need to do in order to have a chance at scoring a salary increase in this economy:

1. Know your boss.

Before asking for a raise, educate yourself as much as possible about the health of your company, and any limitations your boss may face, said Peter Ronza, director of compensation and benefits at the University of St. Thomas.

“You really can’t go in there and just say ‘my light bill went up and I need more money,’” Ronza said.

If you are making a case that you need a raise for personal reasons, it’s critical that you have a close relationship with your boss, he said.

2. Leverage your talent

Even during tough times, companies will have to retain key talent — a circumstance that could work in your favor when it comes to a raise, Ronza said.

“They know that when the recovery starts they have to have the right people in the right places. They are going to invest in you because they need you. That is a point of leverage, if you play it right you could get something,” Ronza said.

For workers who are still employed, layoffs can create an opportunity for a raise, said Jack Chapman, a salary negotiation coach based in Wilmette, Ill.

“If you are still there, you are one of the people they still value,” Chapman said. “The work does get spread around, and you are asked to do more with less.”

3. Show your worth.

Make your accomplishments clear to your boss, experts said.

“In tough times the people that [companies] want to reward are the people who are producing value for them,” Chapman said. “If there is some value you can produce and other people can’t, that makes you more eligible for a raise. Focus on making yourself indispensible.”

Shapiro recommended keeping a list of accomplishments to make an objective case that you are worth more. If others have been laid off, you may have picked up new tasks to highlight.

“You need to prove that you are worth more to the company,” Shapiro said. “Go in and say: ‘I really value working here. I’ve been doing these things I don’t know if you’re aware of.’”

4. Care about the company.

Convince your employer that you are concerned about the company’s bottom line, even as you ask for more money, experts said.

“The way to get a raise is to show that you care for the company like it’s your own,” Shapiro said. “No matter how badly you want a raise, you can’t demand anything. You have to treat the company’s bottom line as your own.”

Don’t be belligerent or appear to be working at cross-purposes with the company, she said.

5. Keep the right attitude.

Though it may be tough, try to stay upbeat in the office even as companies falter, Shapiro said.

“A big part of this whole process is keeping that smile on your face,” Shapiro said. “When times are tough companies do not want complaining employees. You have to have a positive approach during this time or the company will see you as part of the problem instead of part of the solution.”

Firms want to believe that workers are there because they love it, she said.