You can ask for a pay raise during this credit crunch
Apr 05, 2009
DURING a recession, many people work harder but wonder whether it’s realistic to ask for a salary increment. However, sometimes it’s possible. Management experts say that if you want a raise, you have to justify it more than in previous years.
By Fred Ouma
DURING a recession, many people work harder but wonder whether it’s realistic to ask for a salary increment. However, sometimes it’s possible. Management experts say that if you want a raise, you have to justify it more than in previous years.
Also, you have to lower your expectations since companies, especially financial firms and others directly affected by the downturn, have less money to dole out.
“Certain sectors may have the ability to reward top performers,†says Jacobs Olwa, a financial management consultant.
If you take a few important steps, you can get the increment.
Most raises are reserved for top performers, according to studies by employee-benefits-tracking firms like Hewitt Associates. If you plan to ask for one, do an honest self-assessment about whether you made significant contributions to the company in 2008.
If you believe you’re a top performer, you’ll have to put forward a strong case on paper. Prepare a list of accomplishments as well as other ways your performance has been above average. Have you won new clients or spearheaded special projects? More importantly, outlining ways you’ve saved the company money or brought in revenue will boost your request. “You have to point out specific end-results you delivered,†insists Olwa.
Contrary to what many workers believe, in this climate, bosses are eager to hold onto strong workers. This implies they are willing to increase remuneration of valuable people, observes Daisy Owomugasho, a lecturer of management. “They have fewer people, higher costs and thinner margins, so they appreciate them,†she says.
Lynn Nabbosa, a trainer for an information and communications technology firm recently asked for an increment after her performance review, pointing to contributions she made towards the company’s growth and reiterating accolades she received during her review. “I felt my performance had gone above,†she says. “If I thought I was just an average employee, I wouldn’t have asked.†Nabbosa’s boss agreed and she’s waiting for her raise to be approved despite a salary freeze at the company.
Once you’ve clearly written your accomplishments, research about your company’s stand before you talk to the boss. Not every company is feeling the pinch of the crisis. Most firms have published data that you can read to gauge their financial health, says Charles Ocici of Enterprise Uganda.
In industries that have remained relatively strong like health care or education, asking for a raise is not a taboo. However, Owomugasho says you still have to keep your expectations in check and provide evidence when arguing out your case.
If your company is in the red and mass lay-offs are being conducted, postpone your request until the business begins to stabilise. Similarly, if you’re in the remaining arm of a company that has been acquired, be more careful about asking for a salary increment, says Owomugasho. “In some firms, there are bosses who think you’re lucky to have a job and shouldn’t be talking about a raise.â€
Other firms, especially financial ones, are transparent about their payment models this year, with some warning employees that there will be lower raises across the entire firm, says Olwa.
“We are restraining pay. Raises and bonuses are down this year,†says a director of accounts in a local bank. The director says there have been fewer requests for raises due to the economic climate and employees have been “very understanding.â€
If you’re faced with a no-raise policy at your firm, it doesn’t mean that they are banning promotions. If you feel that your performance is worthy a step-up in title, outline your accomplishments. Keep your ears open to find out if any of your colleagues have received promotions recently. This shows whether management is open to the idea. One of Ocici’s clients at a firm with a no-raise policy made his case for a promotion, put together an eight-page document saying why he deserved the advancement and finally got the promotion and subsequent raise.
If your request for a raise is turned down this year, consider a longer-term view. Meanwhile, now is the time to position yourself for promotions and raises once the economy stabilises. “The market affords career opportunities because businesses are highly focused on solving problems. If you can help solve those problems, you become integral to the organisation,†says Patrick Okee, a workplace researcher
Okee says you should figure out your organisation’s goals in the coming year and align your skills to help them adjust to the difficult market.
DURING a recession, many people work harder but wonder whether it’s realistic to ask for a salary increment. However, sometimes it’s possible. Management experts say that if you want a raise, you have to justify it more than in previous years.
Also, you have to lower your expectations since companies, especially financial firms and others directly affected by the downturn, have less money to dole out.
“Certain sectors may have the ability to reward top performers,†says Jacobs Olwa, a financial management consultant.
If you take a few important steps, you can get the increment.
Most raises are reserved for top performers, according to studies by employee-benefits-tracking firms like Hewitt Associates. If you plan to ask for one, do an honest self-assessment about whether you made significant contributions to the company in 2008.
If you believe you’re a top performer, you’ll have to put forward a strong case on paper. Prepare a list of accomplishments as well as other ways your performance has been above average. Have you won new clients or spearheaded special projects? More importantly, outlining ways you’ve saved the company money or brought in revenue will boost your request. “You have to point out specific end-results you delivered,†insists Olwa.
Contrary to what many workers believe, in this climate, bosses are eager to hold onto strong workers. This implies they are willing to increase remuneration of valuable people, observes Daisy Owomugasho, a lecturer of management. “They have fewer people, higher costs and thinner margins, so they appreciate them,†she says.
Lynn Nabbosa, a trainer for an information and communications technology firm recently asked for an increment after her performance review, pointing to contributions she made towards the company’s growth and reiterating accolades she received during her review. “I felt my performance had gone above,†she says. “If I thought I was just an average employee, I wouldn’t have asked.†Nabbosa’s boss agreed and she’s waiting for her raise to be approved despite a salary freeze at the company.
Once you’ve clearly written your accomplishments, research about your company’s stand before you talk to the boss. Not every company is feeling the pinch of the crisis. Most firms have published data that you can read to gauge their financial health, says Charles Ocici of Enterprise Uganda.
In industries that have remained relatively strong like health care or education, asking for a raise is not a taboo. However, Owomugasho says you still have to keep your expectations in check and provide evidence when arguing out your case.
If your company is in the red and mass lay-offs are being conducted, postpone your request until the business begins to stabilise. Similarly, if you’re in the remaining arm of a company that has been acquired, be more careful about asking for a salary increment, says Owomugasho. “In some firms, there are bosses who think you’re lucky to have a job and shouldn’t be talking about a raise.â€
Other firms, especially financial ones, are transparent about their payment models this year, with some warning employees that there will be lower raises across the entire firm, says Olwa.
“We are restraining pay. Raises and bonuses are down this year,†says a director of accounts in a local bank. The director says there have been fewer requests for raises due to the economic climate and employees have been “very understanding.â€
If you’re faced with a no-raise policy at your firm, it doesn’t mean that they are banning promotions. If you feel that your performance is worthy a step-up in title, outline your accomplishments. Keep your ears open to find out if any of your colleagues have received promotions recently. This shows whether management is open to the idea. One of Ocici’s clients at a firm with a no-raise policy made his case for a promotion, put together an eight-page document saying why he deserved the advancement and finally got the promotion and subsequent raise.
If your request for a raise is turned down this year, consider a longer-term view. Meanwhile, now is the time to position yourself for promotions and raises once the economy stabilises. “The market affords career opportunities because businesses are highly focused on solving problems. If you can help solve those problems, you become integral to the organisation,†says Patrick Okee, a workplace researcher
Okee says you should figure out your organisation’s goals in the coming year and align your skills to help them adjust to the difficult market.