Listen to the Latest Podcast Episode
Episode 47: Signs You're Not In Control of Your Career—And What You Can Do About It with Erika Ayers Badan
0:00
43:34

How to Ask for a Raise During Tough Times (Like a Recession)

Most of your advice on asking for a raise, including our own, will instruct you to wait for a healthy time in your organization. Here's how to ask for a raise when tough times seem never-ending.

We try our best to create advice that fits most—if not all.
2020 really threw us for a loop. Suddenly, many of our in-office politics went remote, along with a large part of the workforce. The pandemic changed the face of work forever—and many of us are still navigating the fallout. 
If you're not one of the millions of workers who were laid off, furloughed, or let go, you may fall into another bucket. Many workers are left feeling disenfranchised, over-worked, and underpaid. While some organizations absolutely had very difficult decisions to make in regards to layoffs, other companies have actually thrived as a result of coronavirus. 
Then, as we shared news of our new, exciting jobs on LinkedIn, the gas prices shot up, inflation skyrocketed, and we all were told (once again) to prepare ourselves for another recession
Our "normal" advice is to take the temperature before asking for a raise. However, as many of us are coming up on at least a year of stagnancy when it comes to asking for a raise or a promotion, you might need to ditch that advice. 

Before You Ask for a Raise 

Before you go in to ask for a raise, take an honest temperature of your current job—and the health of the organization. There isn't going to be any salary negotiation if your business is failing during an economic downturn or a tricky year.

You Should Ask for a Raise When:

  • You've taken on extra responsibilities. 
  • You've upskilled to a level that warrants extra compensation.
  • You've hit (and exceeded) the goals you set. 
  • You've been working steeply below market value for a long time. 
  • You were promised a raise or promotion if [x] happened—and it has. 
  • Your organization is doing well, partly due to your specific efforts. 

You (Maybe) Shouldn't Ask for a Raise When:

  • You're only asking because you've been at the company for a certain amount of time. This alone will not be a compelling case for management.
  • You can't find evidence that you're a good employee, much less an irreplaceable employee.
  • You know your company is in the red due to the current climate.
  • You can't gather meaningful data about the impact you've made.
  • You've recently received a poor performance review or a corrective action
  • Your manager has explicitly communicated that raises are not on the horizon. However, do have a conversation about when you can revisit the subject matter. 
We also looked to some other experts for their advice. Kate Dixon, author of Pay UP!, advises, "If you are in a place where you've had a significant impact on the organization and taken on more responsibility and the company isn't saying, 'Have some more money or this promotion,' you do owe it to yourself to ask."
Here's our advice on asking for a raise during tough times. Truth be told, this advice is tough to give. Waters are difficult to navigate at the moment. It will require honesty within yourself and in relation to your future with or without your current organization. 
You can be sensitive to the world around you while remaining true to yourself and your career. Here is how. 

Can You Ask for a Raise During a Salary Freeze? 

According to Investopedia, a salary freeze refers to when a company suspends salary or wage increases for a period of time, typically due to financial constraints.
Companies enact salary freezes or wage freezes for a variety of reasons, including: 
  • Economic downturn or recession
  • Keeping fixed costs controlled
  • In order to avoid layoffs
If your employer has enacted a salary freeze, our recommendation is to not ask for a raise at this time. A salary freeze is a temporary pause, so it's best to wait out the period before making your ask.
You want to give your boss the best opportunity to say "yes" when you ask for a raise. If you do it during a hold on salary increases, you are giving them an easy opportunity to say no. 
While you're waiting out the salary freeze, take the time to increase your knowledge. Research and collect as much data about your salary and role as you can. That way, when the time is right, you'll be ready.

How to Ask Your Boss to Meet to Discuss a Salary Increase 

As with any important conversation at work, the first step to asking for a raise is to put time on your boss’ calendar and give them a head's up that you’d like to discuss your role and current salary. Make sure that your boss is aware that you want to have a conversation about your compensation. If your boss knows that you want to discuss your salary, then they can plan to have a more prepared and thoughtful back and forth with you. 
Also, when you request a meeting, try to schedule an in-person conversation or video call. Being able to read body language and tone of voice is very helpful in the negotiation process
Here's an email template you can use to set your raise discussion meeting:
SUBJECT LINE: Meeting to Discuss Compensation

Hello [NAME],

I hope this email reaches you well.

In my [TIME] here at [COMPANY], I have been so gratified to learn and grow as a [JOB TITLE]. After achieving [ACCOMPLISHMENT] and [ACCOMPLISHMENT] over the past few months, I would like to discuss my compensation.

I have gathered my thoughts, accomplishments, and some exciting supporting data which I'd love to share with you. I checked your public calendar and noticed that [DATE and TIME] and [DATE and TIME] were open. I was hoping one of those slots would work well for your schedule. 

Thanks for your time, and I look forward to speaking with you.

Best,

[NAME]

By the way, if you want more templates and scripts to help you ask for a raise, we recommend you check out our course, Asking for a Raise 101.

How to Ask For a Raise During Tough Times 

1. Focus on the Positive Impacts You Have Made

Here's a tough pill to swallow, but we're going to say it. Hard work does not always equal a great outcome. Focusing on real outcomes is going to be far more impressive than telling your boss you are pulling 90-hour weeks. By the way, you should not be pulling 90-hour weeks
Show your value with cause and effect evidence—where your specific work is the star of the show. For example, if you set up a remote communication system of documents that seamlessly transferred collaborative work to a remote setting, illustrate that. If you were able to pull in a particularly tough client in the middle of very tough times, highlight that. 
Come prepared with specific impacts you have made—especially in the past year. Even better? If you can detail the enormous impacts you've made (that were also priorities for your company) during some of the most challenging times for the company, that will be impressive. 

2. Prepare to Discuss Extra Responsibilities You've Taken—and Their Impact

Tough times call for tough decisions—and we don't envy a manager who has to lay off or furlough employees. As a result of layoffs or firings, many of the remaining employees took on new responsibilities, learned new skills, or took on more work to bridge the gap.
Just like our advice about focusing on positive impact rather than workload alone, use this opportunity to focus on how you improved workflow, increased sales or traffic, or how you seamlessly took on more clients. 
Aside from focusing on impact, there is something to be said for jumping into multiple roles or increasing your skillset to a level that merits more compensation. For example, if your role and corresponding pay are for a marketing associate position, your day-to-day responsibilities should not resemble a marketing manager or a director role. 
You can cross-reference your current responsibilities with job descriptions across the internet. Use a tool like The Salary Project™ to unlock thousands of real salaries.
If a pay increase doesn't seem to be "realistic" at this point, you might ask for a title adjustment and the promise to revisit the conversation down the line. 

3. Gather Data and Numbers Whenever Applicable

If you're familiar with our GIMME script, then you already knew this advice was coming. Bring data whenever you can. 
Data is raw, hard, and pretty indisputable. How has your company or department directly benefited from your work? Did your team play a role in increasing sales by [x]% last year? Did you bring in [x] new clients? 
When you're able to demonstrate that you've increased revenue, sales, or traffic despite a challenging time for the business, you are demonstrating the scale and durability of your work. 

4. Bring Your Own Vision for Future Projects  

Like many managers, yours probably has their eyes on today, tomorrow, and five months down the line. Wherever you can take the burden off, share new ideas, and make your manager's life generally easier, do it. You can even ask them directly, "What are the top three priorities and goals we have as a company and team in the next three, six, and nine months?" In other words—what do we need to do to continue to make ends meet during this time?
If you've already made a case for your work thus far, this is where you go to the next level, by showing what you're capable of achieving. Showcase your vision for the future by using what you've learned so far and amplifying it. 
This look to the future shows your manager a few things:
  • You have a great understanding of your position, its impact, and its potential future impact. 
  • You have learned and grown within your role. 
  • You are worth "investing in" because you're not interested in being stagnant or taking a "plug and play" approach to your job. 
  • You are prepared with the knowledge, lessons, and skills to uplevel your career.
Bring your unique vision with you when asking for your next raise. 

5. Prepare a Contingency Plan 

Perhaps we should have made this our first piece of advice, but we wanted you to focus on you first. When bringing this tough conversation to the table, address the so-called "elephant in the room." Whether it's an economic slowdown, a shaky future, or a disappointing previous quarter, address that from the beginning. 
Career specialist Shari Santoriello advises that you lead with language like, "The last several months have been challenging, but I've been able to continue to grow my sales, improve team morale, or have brought in X new clients in a tough climate."
Don't come into your meeting apologizing for your ask. On the other hand, don't come in with an ultimatum or an "I absolutely deserve this" attitude—even if you do deserve it. 

What to Do if Your Raise Request Is Denied

If your request is denied, be prepared to move the conversation forward. Reiterate the plans you have going forward and ask follow-up questions about when you might be able to revisit the subject of a raise and/or promotion. Another idea is to ask them to consider a one-time performance bonus, which might be less "intimidating" to the organization than committing to a new salary.
There are other benefits and perks you can negotiate that aren't necessarily tied to your wages or overall compensation. Some additional benefits you can negotiate include: 
  • More (paid) vacation time
  • An option for flexible work 
  • Reimbursements for continued learning 
  • Title promotion 
If you've received a no, here's an email response template that you can use to bring up other potential benefits.

Greetings [NAME],

Thank you for your latest email.

I understand that the last several months have been challenging and that an increase in compensation isn't possible at this time. In lieu of a raise, can we put a date on the calendar to discuss other potential benefits?

I'd also like to discuss what benchmarks I could hit in the future in order to achieve a salary in line with my initial ask, [SALARY NUMBER].

Thank you for your time.

Best,

[NAME]

Most importantly, don't feel embarrassed, guilty, or undervalued if your request is denied. The uncertainty of the future for people and companies is very, very real right now.
If you prepare a great case, demonstrate your value, and communicate your future plans, your employer will take note of your negotiation skills—even if now is not "the right time." 

Tags:

You May Also Like

16-Money-Books-You-Need-to-Read- Image
Money
16 Money Books You Need to Read

Ready to make some serious money moves? Here are 16 of our favorite financial books written by women—and for women.

How-to-Recover-Financially-from-Wedding-Season-(+-Plan-for-the-Next-One) Image
Money
How to Recover Financially from Wedding Season (+ Plan for the Next One)

Weddings are expensive for the bride, groom, and the guests, too. Here's how to recover from wedding season.

Laid-Off?-Here's-How-to-Negotiate-a-Severance-Package Image
Money
Laid Off? Here's How to Negotiate a Severance Package

Even if you're gainfully employed, you might not always be.

How-to-Answer-
Money
How to Answer "What Are Your Salary Expectations?"

Sharing your desired salary is easy, said nobody either. Here are the tools and strategies to answer the dreaded salary interview question. You've earned it (and you're worth it.)

These-25-Freelance-Side-Jobs-Can-Help-Boost-Your-Income Image
Money
These 25 Freelance Side Jobs Can Help Boost Your Income

Side gigs are more important than ever. Check out 25 side jobs and their average hourly rate to determine which one is best for you—and your bank account.

Intro-to-HYSA:-How-to-Open-a-High-Yield-Savings-Account Image
Money
Intro to HYSA: How to Open a High-Yield Savings Account

You know you should be saving, but what is the best way to put your money into savings and see it grow? High-yield savings accounts are an easy place to start if you're ready to get serious about saving.

Virtual-Gift-Ideas-for-Every-Occasion-(Shipping-Is-Always-Free!) Image
Money
Virtual Gift Ideas for Every Occasion (Shipping Is Always Free!)

Whether you're shopping for a birthday, an anniversary, or the holidays, virtual gifts or experience gifts are the best—and the shipping is always free.

Why-Multi-Level-Marketing-Companies-Target-Women Image
Money
Why Multi-Level Marketing Companies Target Women

Multi-level marketing is not just Tupperware parties anymore. With economic uncertainty, MLMs are still up to their old tricks. Why do MLMs and pyramid schemes target women? Find out.

27-Personal-Finance-Apps-to-Help-Make-Managing-Your-Finances-Enjoyable- Image
Money
27 Personal Finance Apps to Help Make Managing Your Finances Enjoyable

Looking to pay off debt, increase savings, start investing, or take a look at your entire financial snapshot? We have quite a few finance apps for you.