It’s a bad economy so don’t expect too much from your paycheck.
That seems to be the refrain from many workers out there. Many of you never really liked asking for more money anyway and are now relieved you don’t have to make a case for a raise.
Well, that’s a cowardly career move.
Believe it or not, there are some employees out there who are asking for the big money even in the face of a recession. And they don’t even care if they work for a company that’s receiving bailout money from taxpayers.
They have balls, and they have fat wallets as a result.
There’s even a government official, aka pay czar, whose job it is to keep companies from paying these ballsy employees obscene wages.
This from today’s Wall Street Journal:
Treasury Department official Kenneth Feinberg, who has authority to oversee pay for the 100 highest-paid employees at those companies, has been meeting regularly with the seven firms to help them fix a level and structure of compensation that the government deems proper, say industry and U.S. officials.
I’m not going to get into the debate over whether they should be paid a lot of money or not. If you’ve read my blog, you probably know where I stand on the issue. The growing disparity in pay among the head honchos and rank and file employees is indeed sickening.
What I’m focusing on now is the sheer audacity of certain workers when it comes to negotiating for money and benefits, especially during tough times when employers use the economy as an excuse to squeeze their employees.
Talk about the audacity of hope. Or is it just common sense?
If you’re working for a company, or in a division, that’s clearly hurting financially, loosing tons of money and laying off a chunk of workers, you probably should not expect a fat raise this year. But what if you know your firm or unit is doing just fine, and that you were a pivotal part of its success? You deserve a piece of the action, no?
And maybe even that company that saw financial losses and cut employees is now making a turn around.
There is nothing wrong with you going into negotiations with your boss and asking for what you’re worth, even in this economy people.
When I took some time off last week and unplugged from the work Matrix, I thought a lot about whether I am in control of my job, or my job was was controlling me. Unfortunately, we all become victims of our work at times and let employers gain control over us. Often we hand over that control without a fight.
When you don’t stand up and ask for what you’re worth, that’s handing over control. When you convince yourself that there are no other options for you out in the work world then you hand over control.
Most employers don’t want to part with money in any economy. You may not get what you ask for but you need to make your case.
Coincidentally, when I was out last week, I got a great email on this very topic from Bahaudin Majtaba, associate professor of management at the Huizenga School of Business at Nova Southeastern University. He just wrote a story for HR Review titled “Getting a Raise By Asking For It.”
“Instead of seeing a recession as an impediment, you can see this as an opportunity to do more work in a creative or cost-saving manner which can enhance your opportunities for getting a raise,” he says.
Here are some of his tips for getting more money:
*Assess your value. “You get paid based on what your expertise and time are worth to others in the market,” he says. “Assess your situation to make sure you have earned a raise or promotion. The manager might ask, ‘What have you done for me lately?’ Be ready to answer this question immediately and provide the ‘value-added’ aspect of your work.” Use salary data in the city, state or industry to compare your work with others who have similar qualifications and jobs. Have data and facts to provide your manager during your salary discussion.
*Build your case. “Track your success and document it,” he says. “It will make it easier for your boss to see your contributions and consider giving you the raise.” Remember that you’re asking for a raise because you deserve it, not because you need it. “A desperate need for money does not equate to being worthy of a raise. Do not confuse what you need with what you are worth in the marketplace. Keep the discussion with your manager about your work performance, your qualifications for more income, and your overall value to the organization. “
*Choose the right time for a meeting with the manager. “A best time to ask for a raise might be when you have just received good news or if the company received good news and you had a part in it,” he says. “Perhaps Thursdays or paydays might be a good time to schedule a meeting for discussing the raise. The end of the fiscal year is probably not the right time for a raise since this might be the time when most managers are preparing their budgets for the next year or are answering for their spending of the past year. Therefore managers might be a bit too stressed in such days and weeks when they are dealing with annual budgets.”
*Ask for what you deserve. Be realistic and sincere, says Mujtaba. “Tell your boss that ‘I would like to explain some of my major accomplishments and why I believe I deserve a raise.’ Explain the facts about why you deserve a raise and then ask for a specific increase. If you do not ask for it, then the chances of getting a raise is very small. “
Hope for the best, but be prepared to hear ‘no’ and negotiate alternatives to a raise when extra income is not an option due to budget limitations.
“Keep in mind that in many cases a ‘no’ response is getting you one step closer to the affirmative answer,” he says. “The “no” answer should lead to the question of ‘Why and/or what can I do to earn a raise in the next opportunity?’”
*Set goals. “Volunteer to help when new and upcoming challenging or time-consuming projects,” he says. “Agree to work on projects and times that nobody likes to work on. “ When possible, befriend the manager as your mentor or coach and jointly set goals for the upcoming quarter and year.
Have you asked for more money recently, or were you a cowardly lion?
July 27th, 2009 at 10:30 am
Thanks for the practical advice. I used to work for a state university and negotiated for a raise; fortunately, the school had a program to address equality in similar jobs across divisions. The boss gave the whole department a raise, depending on each worker’s performance.
It’s definitely worth the time to plot your strategy carefully and keep track of your accomplishments.
July 27th, 2009 at 10:43 am
Few things: this coming from someone who successfully negotiated 2 very large raises during recessions..
First, you are right in looking at the value you bring your organization. All we do as employees is trade value for value. (work, intellect, innovation for pay, benefits, environment, opportunity). It is always an agreement - you are never NEVER an indentured servant.
But…
Too many employees have a “when I am paid to do X I will do X” or an “us versus them” - “the man is trying to keep me down” mentality. It is a career killer. The fact is, your “job” is to create value for your organization. If you do not like the organization, believe them to be unfair, believe they will not/cannot meet your needs for pay, recognition, benefits, etc. - start looking elsewhere.
I’ve been writing a career blog for 5+ years but my first entry was titled “how valueable is your value” and discussed the fact that the average pay for your talent is not relevant to your current employer. They may place much greater value on that talent than average. They may place far less value on your talent. You need to realistic assess that - because I would never tell an employee to strive for the “average” pay for your talent. Mediocrity is not the greatest objective. Strive for more.
Again, balance that with opportunity. I have, and am currently, trading some pay for opportunity. If there is an organization that financially cannot pay as much as the “average” but due to growth, key personnel, training, etc. - provide opportunities you might not have ever had elsewhere - it may be a great place to grow your career regardless of pay.
Finally, when discussing with your employer your desire for higher pay, have a salary objective. If they will not give the pay raise desired, ask a very simple question… “What would it take for me to get to the salary? both in time and in production?” If they do not have an answer or the answer is “Nothing - you can’t get there in the foreseeable future.” you have your answer. Time to either settle in to what you make or find an employer who can answer that question.
There are companies growing in a recession - there are companies that fail in times of growth. You are not a victim.. unless you choose to be. Take some time to assess your attitude, your value, your organization/employer, and with that assessment - one that does not position you as a martyr who has sacrificed so much while your employer sucked the life out of you (not really true in 99.999% of the cases) - and after that assessment create a plan of action. And then take action.
July 27th, 2009 at 10:46 am
words to live by, by matthew:
“There are companies growing in a recession - there are companies that fail in times of growth. You are not a victim. unless you choose to be.”
July 27th, 2009 at 11:02 am
Eve,
Strong. Really strong.
No fear folks. Act “as if.”
The Franchise King
Joel Libava