Getting your player ready...
The economy is not showing signs of a robust rebound yet. It’s probably not the best time to ask for a salary increase, right? Wrong.
Pay raises may be harder to come by in the current business environment, but those who can prove that they are an integral part of an organization’s ability to survive the downturn and thrive during the next expansion have nothing to lose by asking. Americans’ salaries are not keeping pace with inflation, which is tantamount to a salary decrease as far as their year-to-year spending power is concerned. Unfortunately, employers are suffering from rising costs as well, and while more are starting to pass along these costs to consumers in the form of higher prices, it has not been enough to offset those increased costs. As a result, wages are frozen. But, for employees hoping for an above-average raise, simply needing the increase in pay will not cut it. Workers will have to prove their worth, as organizations are reserving the most significant boosts in compensation for their top performers. The highest-performing employees (14 percent of the workforce) saw a 5.6 percent base pay increase in 2009, according to Mercer. Meanwhile, a separate survey by human resource consultant Hewitt Associates found that one-time performance-based pay grew by 10.8 percent in 2008 and was expected to climb another 10.6 percent in 2009. It is not surprising that companies are rewarding their top-performing employees with above-average pay raises. Organizations turn to these employees to help them get through this slow economic time and they want to ensure they retain these workers. With new evidence suggesting that salary increases will remain stagnant, a well-planned raise negotiation may be the most effective plan for workers. You have to enter the meeting with a well-thought-out justification for an increase in salary. It should be based solely on your performance, whether it is exceeding established goals, creating and implementing money-saving strategies, or bringing in new business. Support your points with numbers and specific examples and be prepared to answer questions or objections.


