St. Louis Business Journal
How to negotiate a raise
in tough economic times

By Anna Navarro

April 2001 - Negotiating a raise is always a challenge. And the bar goes up during tough economic times. Here are some suggestions for what to do if you like your job and want to stay put, but you need a raise.

For starters, what you DON'T do is waltz in and casually ask for a raise. That's likely to get the door slammed in your face. Why? Because raises are serious matters for bosses. They involve committing to an on-going expense. And a single raise for one employee can disrupt the entire salary structure of an organization, where parity can be a very delicate issue.

To maximize your chance of success it is best to approach the subject of raises with the seriousness and preparation it deserves. I recommend a seven-point approach.

Start by researching the market to determine what the salary norm is for your kind of job, in your size and type of organization, in your region of the country. Good sources: your peers in other companies, who might be willing to swap information with you and salary surveys conducted by professional organizations in your field. Also, two excellent websites -- salary.com and jobstar.com. (Note: Some individuals learn that they are already well paid relative to the market and that they need to consider adjusting their expectations or changing fields instead of asking for a raise!)

Next, decide how big a raise to request. To establish this number, consider how your salary compares to the market, and factor in other issues such as how well (or poorly) your organization is doing financially, your own performance, how long it's been since your last raise, inflation, etc. This requires intuition and judgement.

The third step is to develop the arguments for why you deserve a raise. This means being very clear about what you have contributed. In tough economic times, the most powerful arguments have to do with making money for the organization and/or reducing costs. Runner-up arguments involve less tangible contributions, like improving morale or solving a recurring problem. Be specific, and keep in mind that what counts is what the boss values, not what you need. The fact that you just bought a new house and have hefty mortgage payments is irrelevant!

Fourth, develop your pitch. I often suggest clients prepare a written outline of what they plan to say. It's best to start with a recap of your recent history of raises and an acknowledgement of special circumstances ("I know our last quarterly financials were disappointing", etc.) From there, move into your accomplishments/contributions and what you discovered the market pays. Also itemize other considerations you factored into your thinking. End with your request for a specific increase.

Fifth, practice your pitch. Get your lines down before you go into the lion's den. Anticipate your boss' objections and rehearse some comebacks.

Sixth, time the negotiation. It's best to approach this subject 6 - 8 weeks before your next scheduled performance review. This is the typical timeframe in which most managers are pondering these issues and it is when they are most open to input.

Seventh, conduct the negotiation. ALWAYS start with an honest statement of why you really like working for the organization. This increases your value, because all bosses like happy employees! After you deliver your arguments and your request look your boss straight in the eye and be absolutely QUIET. Look as though you deserve what you've requested. Be prepared to listen to objections and to dicker about the size and timing of the increase.

This seven-step approach has proven to be a very effective method for helping individuals negotiate raises that bring them up to par with the market.

If it doesn't work for you, ask your boss what it would take to get a raise. This makes specific what's expected, and gives you some performance objectives.

If you don't get a raise, be sure to maintain a positive work attitude as long as you stay in the job. In the current economy, budgets are tight and sometimes bosses have little wiggle room. Getting huffy won't help your situation.

As a last resort, you can look for another job, negotiate a higher salary, then come back to your current employer to see if he/she will match it. And if she/he won't, then you have the option of going to the new job instead!

Anna Navarro is the founder of Work Transitions, a nationwide career consulting firm that trains independent career strategists and consults with individual clients.

This column was originally published by the St. Louis Business Journal. The actual title of the column and date in which it appeared in the Business Journal may be slightly different from what appears on WorkTransitions.com.