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The Honolulu Advertiser
Posted on: Monday, November 9, 2009

Speak employer's language to snag that raise


By Andrea Kay

Why, one worker e-mailed me, do companies making a profit get to use the poor economy as a "lame excuse to deny employees their customary annual raise?"

This is especially upsetting, she says, when they "jubilantly reported a profit this quarter and upper brass got all-expense-paid trips and bonuses" while the "employees who allow these companies to survive and thrive get a Friday barbecue, movie night or pizza for lunch."

Describing herself and others as "powerless to stand up for our well-earned raises for fear of losing our jobs," they "feel helpless, victimized and voiceless during these tough economic times."

They are not alone. I'm not even talking about bailed-out financial firms who have boosted lavish perks to chief executives. Employees everywhere want to know why, when companies have laid off workers, furloughed others without pay and denied raises, do some higher-ups get royal treatment while everyone else is told to cut back?

"We have to pay some key people more and offer these benefits to keep them from taking other higher-paying jobs," one senior executive explained. Salaries and perks need to be high enough to attract qualified people, another said.

U.S. companies are also holding on to more cash than at any other point in the past 40 years, says an article in the Wall Street Journal. Companies, experts say, are still traumatized by the financial crisis.

Cash has to come from somewhere and indeed, raises for most workers have been few and far between. A survey by Hewitt Associates showed that in 2009 U.S. companies granted employees the lowest base salary increases in 33 years.

One challenge is that to contain costs, companies issue across the board "freezes," giving them their rationale for no raises.

So please, asks this upset worker, "Offer us some coping advice."

This won't be easy to swallow. First, you have to counter that "departments don't get raises, people do" and become the exception to the rule. Second, you have to accept that no one is entitled to a pay raise. Whether in times like now or a rosy economy, the key to a raise is the same: Speak the employer's language.

That means showing how well you solve problems and examples of going above and beyond your job. (This is different than telling them how much you deserve a raise.) It's explaining results you achieve so they'll see you're someone they can't do without.

There's no reason to be afraid to go to a manager with such a well-reasoned approach that includes:

• Specific ways you've made a bottom-line difference.

How have you saved or made money? What did you do to cut costs, get a better deal or save an account? What additional responsibilities did you take on? How have you pitched in and come up with new ideas and solutions affecting the bottom line?

• Knowing the salary range for your role in your industry and geographic area.

If you've got the experience, you want to shoot for the high end of the scale.

• Acknowledging the company's point of view.

Even if your firm is doing well, acknowledge that while you understand the company wants to be sensible with expenditures, they had a good quarter with projected increased sales.

If they still say no to a raise, ask for additional training — which adds to your value. Also, discuss what you'd need to accomplish to get a raise, then ask to revisit this again in three months.

There's no guarantee. But you won't feel powerless if you believe you're a valuable asset, can demonstrate it and your boss sees you the way he or she sees upper management — as someone they can't do without.