How to Get a Raise in a Recession

Tell Your Boss What She Wants to Hear

Demanding a raise at a time when your boss could probably find 10 unemployed MBAs willing to do your job isn’t a particularly smart way to negotiate, says Jeanette Nyden, a business attorney in Seattle and author of Negotiation Rules! A Practical Approach to Big Deal Negotiations. Instead, approach her with a softer line that acknowledges whatever economic pressure the company might be under and that emphasizes you’re a team player. So you might say something like: “In light of the fact that I’m taking on new responsibilities for the company, I would like you to consider raising my compensation,” rather than “If I have to do two jobs, I expect to get paid for it.”

And while it might seem like you don’t have much negotiating power without another job offer in hand, you probably have more leverage than you think, says Carol Frohlinger, principal at consulting firm Negotiating Women. If you’ve picked up the work of colleagues who have been laid off, that makes you more valuable to the company. And if there’s a hiring freeze in place, so much the better — managers who are unable to replace departing employees will want you to stay, and more specifically, to stay in their department.

Managers also tend to look at the big picture when deciding whether it’s worth it to go to bat for someone asking for a raise. Todd M. Schoenberger, managing director of investment management firm LandColt Trading in San Antonio, Texas, said he looks not only to how much employees earn for a firm, but how much they cost the firm and what their upside is. Do they spend a lot on corporate trips? Are they a nuisance in the office? And can they accept new responsibilities if they get a bump in pay? “[This last question] is the most critical because employees have to sell themselves if they want more money, and the best way to do that is to ask — almost beg — for new roles and responsibilities,” says Schoenberger. “Simply asking for more money because you want more money isn’t going to cut it.”

Kristi Casey Sanders, co-owner and editorial director of Atlanta Metropolitan Publishing in Atlanta, Ga., echoes Schoenberger’s comments. “As a senior manager, I need people who bring solutions, not create problems,” she says, adding that the employees she’s going to work to keep are those who show initiative. “If they don’t have all the information they need, they figure it out. If they have some spare time, they pitch in and help someone else.”

Think About the Bigger Picture and Negotiate for the Long Term

It may be that even a mountain of evidence showing you deserve a raise won’t get you one, because it’s simply impossible this year. But that’s not your cue to give up. Instead, ask if the company would be willing to consider compensating you in other ways such as paying for added training, giving you more vacation, or allowing you to work more flexible hours.

Penelope Truck, founder of the blog Brazen Careerist, which provides career advice to young professionals, says that the meager raises people might be able to get nowadays probably aren’t worth as much as good opportunities to learn new skills. “Ask to get into a mentoring program, for special training, to be part of a special project you normally wouldn’t be involved with — all these will enhance your skill set and make you eligible for a change in the type of job you do, which would be worth more in the long run,” she says. “Most people don’t increase their worth in the company without changing their job and getting a promotion.”

And don’t give up on trying to get that raise. Get your boss to agree to revisit the issue of your compensation in six months, and set a date for the follow-up meeting. Agree on some specific goals you will achieve in that period, such as a certain percentage increase in sales, or number of projects that will be completed. Then, reiterate everything discussed in a formal email sent to your manager, so that both of your expectations are clear: he wants certain targets met; you want a raise in six months. Keep track of what you’re accomplishing in that period, and email your boss (and copy whomever else is responsible for compensation decisions) monthly updates on the status of your work. “It will show that you are willing to stick with the company and continue to work hard, even through bad times,” says Jonathan Alpert, a psychotherapist and career counselor in Manhattan. “And that will give your manager confidence in you.”