Unless you’ve been living on mars for the last 5 years, you’ll know that we’re in a global financial crisis. So asking for a raise, right now, will probably lead to disappointment or even conflict. There are, however, alternatives to a raise you can consider.

Most of us need a raise when the income we take doesn’t cover our expenses (of a modest lifestyle). And sometimes we could be asking for a raise to increase our well-being. Here are 20 things you should look at first, before going in with financial demands:

1. Ask for overtime or additional shifts.
2. If you haven’t done so, get clear on what you need to achieve to be promoted.
3. Challenge your organization’s bonus scheme to discover if you can be awarded more for higher performance.
4. Request to telecommute (that’s work from home) a couple of days a week, which will save on your travel costs, car parking, possibly childcare and even on small costs like eating out for lunch.
5. Negotiate benefits to reduce your costs, such as additional health-care,
6. Child-care,
7. Or other insurance.
8. To increase your hourly rate, you could try asking to work less hours in the week for the same salary.
9. Request to adjust your working hours so that you can avoid costs (like childcare as above.)
10. Ask for more paid vacation days.
11. Encourage your employer to negotiate corporate discounts for the local fitness club,
12. Or local car parks,
13. Or local restaurants,
14. Or other local stores that supply expensive large items like white goods (that’s washing machines and fridge-freezers),
15. Or vacation packages.
16. If your organization provides internal training, then request more training.
17. Ask your employer to provide interest-free loans.
18. Discover if your employer can offer you subsidized/discounted travel on trains or subway,
19. Or even air-fare.
20. Request college scholarships for dependents.

If you’re still hell-bent on a raise, then take a look at my post “How To Ask For a Fair Raise or Pay Increase During a Recession“.

Do YOU Know of Other Alternatives?

Then please share it! Leave a comment below.

©2012 SimonStapleton.com. All Rights Reserved.

OK, we’re still not out of the woods yet, but isn’t it a good time to compare your salary now against the market benchmark? Here is how to do it.

The turmoil of recession has meant that salaries have been squeezed by employers. Some people haven’t had a raise in a couple of years, and heck, some people have had their salaries cut! Now the economy is stabilizing, isn’t it time to see how your salary compares now to the benchmark?

This is what many people are now doing. John Hines is a bank manager in Phoenix, Arizona, and he told me

My salary was frozen in 2008, and then cut by 5% in 2009! I totally understood why the bank had to do it, and I am still in a job, right? But now I want to know where I compare to other bank managers in Arizona. Is it time to ask for a raise, or move on to find a more lucrative deal, or should I hold out?

So I helped John find out. What John discovered was that his current salary is almost 6% above the average, so he is going to keep his mouth firmly closed…. for now. He’s going to check back in another 3 months to see how he compares then.

But what about You?

Do you think you’re on a bum deal, but are not sure? Or maybe you think that you’re currently at the top-end of the benchmark and therefore possibly at risk?

Courtesy of PayScale.com you can find out right now (US/Canada only). You can compare your salary against people with the same job in the same state, using the tool below. And don’t just do it once! By using these tools regularly, you will build a picture on how the benchmark for your job is changing as the economy improves – so try it at least every 3 months.

How Did You Compare?

Share your results by leaving a comment.

US Users:

Canadian Users:

©2012 SimonStapleton.com. All Rights Reserved.

Asking for a raise during a recession can give good reason for your boss to think you’re totally out of touch with what’s happening in the global economy, or maybe they’ll think you’re just insensitive to business issues. It’s a risky thing to do. What if you’re struggling to make ends meet yourself; perhaps you have no choice? Here are some tips on how to ask for a raise during an economic downturn.

First things first.

If you don’t need a raise, then don’t ask for one. Venturing into this territory has risks, so don’t put yourself at their mercy if you can avoid it. You might want more income, and so do most other people. You should only ask for a raise if you really need it.

Why might you need a raise?

Until recession really bit (Sept/Oct 08), inflation was high. In the US, inflation hit 5.6% and other countries such as the UK, Germany, Canada saw similar figures. Although inflation has gone down significantly, the effect of high energy and food costs, for most people, we are worse off. If it’s costing more to live now, workers who were just keeping their financial heads above water early last year will be struggling right now.

Is this you?

What’s a ‘fair’ raise?

It’s essential to know the value of your role, based on your skills, experience and don’t forget location. You’ll likely observe a band in which your role pays based on these factors, and if you’re asking for a raise that lies well within that banding then you’ve got a good case, particularly if you’re currently earning below average. Try using Payscale.com (US), Salary.com (US), mysalary.co.uk (UK) or search for one in your country.

Once you’ve assessed the band you can negotiate in, you can calculate the ‘fair’ raise you’ll ask for. In a economically challenging climate, fair is to ask just for what you need and no more, providing it falls within the band. It should be a number you can justify and feel confident in asking for a raise with integrity. PayScale.com offer a neat tool for working out your cost of living . You can use the tool for free here .

Here’s another important thing: comparing yourself to your colleagues isn’t a great way of assessing a ‘fair’ salary. This rarely works as a bargaining tactic in my experience, and you’ll land your colleague in the shtuck – disclosing salary is not a prudent thing to do. It’s much better to compare yourself against the benchmark rather than an individual.

Asking for the raise.

Bill Sturrick, a HR manager in NYC, says “If you don’t ask for a raise right now, then you’ll be lucky to get one. You should ask though, if you need it.”Sturrick believes that asking for a raise now shouldn’t expect a hostile response, “People have to eat and put a roof over their heads, and often the raise needed is peanuts!”

The tip is to lay it out to your employer. Don’t hold back on asking for what you need, but don’t be pushy or greedy. Prepare your case before you ask, and demonstrate why you need to raise to make ends meet. Be honest with yourself and your boss when making this assessment though. Trickery just won’t work. Offer any data you’ve gathered to your boss during negotiation – in fact any information you use to base your case for a raise on you should share. You’ll expect complete transparency from your boss, so you should do the same. Any information you have must be open to challenge.

Also consider your uniqueness in your organization. Are you what’s known as a ‘key-man’? (or maybe ‘key-woman’, but it’s just a turn of phrase!) If you are irreplaceable, then you certainly have leverage to ask for a raise. Strong words of advice though – don’t over-use this, or even mention this during negotiation! Your employer won’t like you have them over a barrel, so only use this as a means of confidently negotiating, not as a negotiation tool itself. If you do, then I can promise you this situation will be short-lived whilst your employer reduces their risk.

It’s much better to emphasize your uniqueness and value by discussing the results from recent performance reviews/appraisals to show you are exceeding your employer’s expectations, and bring in any 360 degree feedback to the same effect. Sturrick advises “Use documented evidence of your value during your negotiations and let the opinion of your boss speak for itself.”

Alternatives to a Raise

Many employees won’t ask for a raise when they know that their employer is in financial difficulty. This is a stressful time for employee and employer!

Guess what though – there are alternatives than a raise which can help out with financial strain.

Take a look at personal expenses that are made in the course of employment. Many of these costs are in commuting and childcare. If a raise is out of the question for you, then ask your employer if you can telecommute (that’s work from home) a couple of days a week, which will save on your travel costs, car parking, possibly childcare and even on small costs like eating out for lunch.

You may also want to try negotiating other benefits to reduce your costs, such as additional healthcare and other insurance. Look for expenses that cost you a great deal but are low for your employer under bulk discount.

Negotiation?

I’ve used the word ‘negotiation’ in this article a number of times, but perhaps we shouldn’t see it as a negotiation? This word rings of a win-lose outcome. A discussion about pay during a recession is about searching for a win-win, where you as an employee take home a fair pay that you can live on, and your employer enjoys the benefits of your skills, knowledge and experience for that price. Understanding this can mean you have fair and open discussions with your boss and your HR department – you’re looking for a workable solution to a shared problem.

©2012 SimonStapleton.com. All Rights Reserved.