Asking for a rise

So it’s no surprise that more and more workers are asking for a pay rise to combat the effects of the credit crunch.

Two-thirds of employees believe their salaries are not high enough to cope with the cost of living, according to research by employment law firm Peninsula.

The study also showed that almost four out of five firms had been approached by staff for a pay rise in recent months.

“The credit crunch is really hitting the workforce hard and many employees are seeking a wage increase to soften the effect,” says Peter Done, managing director of Peninsula.

“The rising cost of food and the increase in the basic cost of living has really affected employees and these increased costs are just some of the factors behind employees' wishes for higher pay.”

Asking for a pay rise can also be a response to people feeling worried about job security, adds Kieron Hill, Peninsula’s director of consultancy.

“It can be a way of gauging whether their employer wants to keep them or not.

“We saw the same thing in the mid-90s, during the economic downturn, where people became much more focused on money than the more esoteric interests such as job satisfaction, or the people they work with.

“At the end of the day, money is the biggest security that people feel they can get.”

Asking for more money can be a daunting task at any time, especially now when most companies will also be looking for ways to cut costs.

But even in this unstable financial climate, there are still ways you can approach the issue with your boss.

“The best way to get a pay rise is as an individual negotiation and in response to positive evidence, so you’ve had some good results, you feel you’re adding value to the business, you’ve got some great ideas,” says John Lees, career coach and author of How To Get A Job You’ll Love [McGraw-Hill, £12.99].

“If it’s presented as a gripe, so someone’s paid more than you are or you’re not so happy in your work, it lumps you together with a group of other people, you become subject to corporate policy and you lose sight of what you're doing as an individual.

“At the time of the credit crunch and rising costs, it’s more important than ever to demonstrate how you are adding value to the organisation, particularly as organisations are probably going to be thinking about another round of restructuring and downsizing before too long,” adds Lees.

There are no hard and fast rules about how to approach the pay issue, but Lees says it’s imperative that you choose the right time and the right person.

“Make sure you know who holds the power – there’s no point spending a lot of time complaining to your boss if your boss doesn't have any power to make it happen.

“It’s also a question of understanding your boss's decision-making style, whether you do it conversationally, or you plan it carefully and send an email ahead setting out your case.”

Lees warns workers against presenting their employers with a negative message.

“When you speak to your boss, it is a good idea to have an idea in mind of how much more money you may be entitled to, so make sure you do your homework first.

“The employer may have other figures in mind in terms of how much it would cost to replace you, so sometimes it is a good idea to indicate that you would like an improved salary, but not be too precise about what you're looking for,” Lees says.

Be prepared for a negative response from your employer and prepare a “fall-back strategy” of secondary demands, says Lees.

“"It might for example be easier for the organisation to make more flexible working arrangements for you or to fund any learning you'd like to do.”

Whatever you do, don’t look disappointed. “If you like the job and want to stay there, then make sure your request is wrapped up in lots of positives. If you don’t like the job, then the pay rise isn’t going to solve the problem anyway.”