Flash player is required to view weather conditions. Download

site web  

The economy is showing no signs of a rebound. Corporate costs are rising. Layoff announcements have increased significantly and the heaviest job-cutting period of the year is just beginning. It is 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.

For most American workers, pay raises have averaged about 3.8 percent in 2008, virtually unchanged from the 3.7 percent salary increase averaged in 2007, according to new survey data from global consulting firm Mercer LLC. The rate is expected to remain the same in 2009.

These marginal increases do little to combat inflation, which some experts expect to approach four percent in 2009, or rising energy and food prices which have escalated 28 percent and 8.7 percent respectively over last year's cost.

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, jobs are cut and wages frozen.

But, for employees hoping for an above-average raise, simply needing the increase in pay will not cut it.

With new evidence suggesting that salary increases will remain stagnant for the rest of 2008 and into 2009, a well-planned raise negotiation may be the most effective plan for workers.

Even if you present a great case for a salary increase, some companies simply do not have the extra money to reward their best performers with higher salaries. You might be able to negotiate some other benefit or at least put yourself in a good position for a salary increase when conditions improve.

James E. Challenger, president of Challenger, Gray & Christmas Inc., is in his fourth decade of job search counseling. He has authored three books, including his most recent Job-Hunting Success for Mid-Career Professionals.