Transcripts

"Money File"-Raises in a Recession

SUSIE GHARIB: In tonight's "Money File," negotiating a raise during a recession. Here's Donna Rosato, senior writer at "Money" magazine.

DONNA ROSATO, SR. WRITER, MONEY MAGAZINE: Are you working more but earning less? Pay freezes, pay cuts and furloughs have became standard operating procedure at many companies since the great recession began. But just because unemployment is expected to keep rising into the middle of next year does not mean you have to rule out a pay increase again next year. While companies continue to be reluctant to hire, they're also concerned about retaining the workers who remain on the job. In fact, if you've managed to hang onto your job and taken on more responsibility, you have a good case for asking for a salary bump. More than 80 percent of companies are planning to give pay raises to their workers in 2010 according to Mercer Consulting. So, how do you position yourself to be among that group? First, read the tea leaves and assess your company's financial health. Has the profit picture improved? Is your firm adding clients? If your company is improving along with the overall economy, you can feel more confident about asking for a salary increase. Next, make a list of your accomplishments and write down the extra work and additional tasks you've taken on. And, if you can't get an increase in your base salary, ask if you are eligible for a performance-based bonus. Finally, be flexible. If your employer isn't open to a salary increase or bonus pay, don't be discouraged. There are other forms of compensation that you can negotiate. Ask for your company to contribute more to your health care costs or even your commuting expenses. Just because times are tough, does not mean you have to toil without a pay increase. I'm Donna Rosato.