How to negotiate a raise amid economic uncertainty and the looming threat of layoffs

In times of economic uncertainty, when layoffs and cutbacks have become commonplace, the mere thought of negotiating a raise may seem bold at best, or even insensitive to those whose roles are at stake.

But just as businesses are experiencing the pinch, so are employees.

Inflation is rising, debt payments are rising, and money is not as good as it used to be.

Struggling to meet rising costs, it’s only natural that asking for a raise is at the forefront of most people’s minds.

As risky as it sounds it will demand more money as leaders around the world ponder whose heads should be next on the chopping board, experts say. luck that now is as good a time as any.

With costs rising but consumer confidence low, businesses need to stand out from the competition now more than ever if they want to survive.

Backed by the belief that your employer cannot afford to lose valuable players, here are a few things to keep in mind before walking into your employer’s office and asking for more money.

Know your worth (and others)

Before even broaching the topic of salary with your employer, you should first make sure you know your worth. For all you know, your salary may be more than the rate.

“Asking for a raise because you feel you work hard, deserve it, or have a lot of money, doesn’t really show why the company should invest in you,” emphasizes Sophia Procter, a former blue-chip company executive turned founder of children’s retailer, Munchy Play.

Start by looking at job adverts for similar roles at your level and talking to recruiters to find out what the fair salary range is for the job you’re currently doing.

You can use this data as leverage when approaching the subject of your employer’s salary if you are clearly underpaid.

“You really need to conduct your research from multiple sources, to strengthen your data and avoid falling victim to a low offer,” said Ed Johnson, CEO and co-founder of online career progression and mentoring platform PushFar.

“Even if your research supports your case for a higher salary, it’s not enough to just counter with a higher number – you have to explain why you deserve it, especially if a company is struggling financially.”

By noting how your work has benefited your company’s growth, from positive client feedback to any sales you’ve made, you can begin to quantify how much value you bring to the organization.

“Any measure helps justify your value as an asset and how you personally add value,” Procter stated while adding that workers should remember to add $6,000-$19,000 to their calculations-the estimated cost for employers to find your replacement, depending on your level of experience.

In addition, emphasizing your value and dedication to the organization, emphasizes that investing in your growth is not only beneficial for your own financial well-being but also for the long-term success of the company.

Be reasonable

Deep down, you’re probably freaking out about the rising cost of rent and your maxed-out Amex card, but broaching these issues in front of your manager won’t help win your case.

“First and foremost, and even if you can’t do anything, remove yourself from any emotions related to your request,” emphasizes Dr Catherine Baudino, an executive coach and author of the book corporate self-help, Step into my Shoes. “Emotions get in the way of any statement and get in the way of clarity. “

He suggests communicating your request logically by sticking to the facts, rather than pouring your heart out.

“I know it’s cruel and cold, but a hysterical or tearful plea will get you nowhere,” he added.

As for getting your tone and messaging right (and well-reasoned) it takes practice.

If you’ve ever written an emotional speech, you’ll know that the first time you recite it, it might sound messy, but the more you repeat it, the more authentic you’ll be.

“Practice and re-practice yourself in front of a mirror and, if possible, in front of a trusted friend or coach,” adds Baudino.

“By finding a mentor you can practice with, this will help you build your confidence because they can walk you through role-play scenarios to help you feel prepared and empowered. to ask for fairer terms,” ​​echoed Johnson. “Teachers will also help you to consider unexpected questions that you may get, what is the best answer to them, as well as to help you deliver your negotiations more confidently.”

Timing is everything

Many experts echo that the time all.

If your company has recently gone through a round of layoffs, it may be worth waiting for the dust to settle before asking for a raise.

“Remember where your company stands at this point in time,” says Charlotte Davies, career expert at LinkedIn. “These are difficult financial times for many businesses – and that may include your employer.”

He suggested being sympathetic to the company’s circumstances and the financial challenges it may be facing.

“Read the room, but know that if you’re confident you’re meeting your new goals and your performance is bringing benefits to the business, it’s still okay to put your point of view while being sensitive to theirs. situation now,” he added.

On the subject of timing, it’s also worth considering your boss as an individual, who may have many. The last thing you want to do is stress them out after a meeting about the company’s poor performance.

“If your boss is not a morning person or is traveling abroad, I dare to suggest that this is not the best time to get their attention”, insists Baudino.

Work out your alternatives

Finally, if there’s no room for a raise, don’t take it personally — it’s the company that rejected the proposal, not you.

As Martin Schweinsberg, an assistant professor of Organizational Behavior at ESMT Berlin, says, “Sometimes, there is no room for higher salaries today.”

He suggests thinking about what else makes you happy or indirectly helps you financially.

“What is valuable to you and will be affordable for the company?” he added. “You’re probably paying more money out of your after-tax income for the gym membership and it would be cheaper for the company to add you to the corporate plan.”

Many companies offer perks like discounted items, training programs, and sharing options so use this part of your negotiation wisely.

Meanwhile, most companies are more open to flexible working now than in years past, which can allow you to save on travel, food and other costs associated with going to the office.

But in the end, if you don’t expect to be able to negotiate anything from your current employer, then instead of looking at alternative ways to grow in your current role, it may be time to find one. you new job.

Once the tedious task of trawling the internet for relevant higher paying roles is over, you can also apply for those that pique your interest.

“There’s nothing more empowering than having alternatives because the recruiter knows they have to pay you more to keep you,” Schweinsberg added. “Alternatives give you negotiating power.”

In addition, you may even find a company that knows your worth and will give you a generous offer to ditch your current employer for them, without having to negotiate with your current employer at all. .



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