Negotiating A Raise When Payroll Growth Is Slow

(Monday, October 18, 2004) - With news reports chronicling the slow growth of U.S. payrolls and persistent weakness in the labor market, many workers today aren't comfortable asking for a salary increase. One economist recently noted the current labor-market recovery is the poorest on record. However, "Don't let this entirely govern your decision to ask for a raise," says Peter Handal, President and CEO of Dale Carnegie Training.

Handal notes that a worker's individual performance, achievements, growth and professional relationships are the larger factors weighed by employers when evaluating a salary increase. However, many companies are cutting costs and exploring growth opportunities. "Don't be foolish and ask for a raise when you know your company is struggling. That isn't good judgment," cautions Handal. "If you genuinely feel your talents and accomplishments merit a salary increase and the timing is right based on your last performance review, then prepare to ask for and negotiate a raise."

Handal advises workers of the following:

- Honestly evaluate your merits, achievements and growth. Have you broadened your range of skills to provide greater benefit to your position? Have you exceeded the goals your employer set for you? Negotiate from a point of value -- what value do you add to the position and the company? Be able to communicate that value in concrete terms that are meaningful to your employer. Talk in terms of his or her interests.

Is your company in the financial position to support a salary increase? Be smart, advises Handal, and know the numbers before you request a meeting about a raise. Says Handal: "If you can't put your request for a raise into the context of the company's finances and future growth, not only will you lose face, you'll jeopardize future salary negotiations."
Do your homework. Know the median salary for your position at a comparable company, says Handal, but remember "the economy and job market remain tenuous, so salaries aren't the same across the board -- even for the same role, title and workload." Be flexible and reasonable in your expectations.
Handal observes, "A salary increase doesn't always take the form of more cash." Other perks that can supplement a salary increase include a car allowance, company-paid parking spot, commuter incentives or more vacation time. "Be flexible," advises Handal, and remember that, "you're asking for a raise to improve your quality of life. Non-cash perks, big and small, can also do that."
Background
Peter Handal is the President and CEO of Dale Carnegie Training. Dale Carnegie Training (www.dalecarnegie.com) is a global management training company with experts in corporate management, workplace issues and leadership trends. The company provides leadership, sales and management training in over 400 of the Fortune 500 companies, training over 6 million adults worldwide.

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