• Friday, February 10, 2012
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Asking for a Raise During Tough Economic Times

JOB MARKET

By Alison Stein Wellner

You didn't go into charity work to get rich. But, on the other hand, you probably didn't take a vow of poverty, either -- and your creditors aren't likely to care what you do for a living. Sooner or later, regardless of the prevailing economic climate, even the most selfless nonprofit employee needs a raise.

"People who work at nonprofits might feel guilty about taking money that could be used elsewhere," says Carole Martin, of Danville, Calif., who coaches job seekers, including many nonprofit employees, on their interviewing skills. "Wrong attitude. Everyone must take care of themselves in this world. It's about business and professionalism."

Asking for a raise is a humbling experience. You're taking your hat in hand, asking your boss to assign a dollar figure to your worth as an employee. And the fact is, there are plenty of reasons to be nervous, especially these days. A nonprofit employer "is always geared toward trying to keep costs at a minimum," says Bill Hansen, president of Leader Dogs for the Blind, in Rochester, Mich. If you badly bungle the conversation, your relationship with your supervisor could suffer. And even if the meeting goes well, you still may not get what you want: Economic times are lean, with some charities freezing wages, leaving vacant positions unfilled, and even laying off workers.

But nonprofit managers have to reward good employees, Mr. Hansen says -- or they may lose them. It is possible that your supervisor simply hasn't yet had the opportunity to express his or her appreciation of you. And you'll never know how much more money you could have unless you ask.

However, don't just barge into your boss's office and blurt out your request. Asking for a raise is basically like interviewing for a new job, says Gail McMeekin, a career coach in Newton Centre, Mass., who works with many nonprofit employees. And, as in that situation, she says, success rests in the preparation. Here are a few things to ask yourself before you speak to your boss:

How's the charity doing? Get a good sense of your organization's financial health, in order to calibrate and defend your request. Comb through annual reports and other public documents, such as IRS 990 forms (available on GuideStar, a national database of charities). Don't let bad news deter you, but be prepared to make your case if you encounter resistance. "There will always be economic circumstances to muddle through," says Mallary Tytel, president of ETP, a nonprofit human-resources and management-consulting company in East Hartford, Conn.

If your charity is doing well financially, this information can help you gauge how much money to request. And if donations are down, government aid has dwindled, or the organization is carrying a lot of debt, you're going to want to bring up the financial situation before your boss does. "If a person walks in and says, 'I should get X number of dollars more, ' but they don't show any understanding of what the nonprofit is facing at the moment, it almost puts a subconscious resistance barrier in there because it's saying you obviously don't understand the financial circumstances that we're facing," says Mr. Hansen. But, he adds, "If a person comes in and says, 'I understand what you're facing, but here's what I've done, and here's what I want, ' there's a better opportunity to reach an agreement that we can both live with."

You can also do some scouting around to find out whether your organization is keeping tabs on whether it compensates workers fairly. For example, one Chicago organization that serves people with disabilities is in the process of reviewing salaries across the entire organization in order to keep their employees happy, says one board member (who, like several other charity leaders and employees in this article, shared their experiences on the condition of anonymity).

How are you doing? Even if the organization has the money and you're underpaid, you're still going to have to make a case for your raise -- and one based on your performance, not your financial needs. "Emotional reasons don't work," says Ms. Martin. "If you talk about anything personal, you lose ground."

Enter the conversation armed with the facts, says Salvatore Peri, president of TAG Executive Services, in Skokie, Ill., a recruitment company that specializes in charities. "You need to be sure that whatever performance improvement that you've had during the course of the year is documented and measurable," he says. "You've got to have facts today to substantiate a pay increase. If there were goals set for you, how did you stack up against those goals? Did you meet the objectives they set for you?"

If you've exceeded expectations and can prove it, it can pay off. One middle manager of a New York nonprofit organization found ways for his charity to save a substantial amount of money in consulting fees. Even though many New York charities have been strapped for funds in the wake of September 11, he recently received a raise thanks to his efforts.

Obviously, if you've failed to meet your performance goals, you're going to have a harder time making your case. In that event, you might consider setting aside your request for a raise and instead focusing on improving your job performance, says Mr. Peri. You also might want to seek more training or education, something that could help you make your case for more money. One health-care administrator at a nonprofit organization in New York State parlayed a specialized accounting-program certificate into a promotion with a raise.

Does anyone notice your hard work? If you're going above and beyond your job duties, make sure your supervisor is aware of it. "On an ongoing basis, you should keep your boss apprised of what you're doing, what your accomplishments are, and so forth," says Ms. McMeekin. "That should not be a once-a-year, hit-and-run conversation."

In fact, it's good to find ways to make your name and achievements known well ahead of having "the big talk." "Don't assume that good works speak for themselves," advises Susan Battley, a psychologist and consultant in Stony Brook, N.Y., who works with nonprofit managers. Case in point: One woman who had worked at a Boston charity for 12 years was sure she was doing outstanding work, but repeatedly found herself passed over for both raises and promotions. The employee decided to pave the way to a raise by raising her profile at work. She started to write a column for her organization's newsletter, and began sending her boss quarterly memos about her work activities. She also began speaking up at meetings, instead of quietly taking notes. After several months of this new approach, she asked for a raise -- and got it.

Is your salary in line with the market? It's awkward to ask friends and colleagues what they make -- and even if they answer, they may not tell you the truth. Several online services let you plug in your location and job title, and give you an idea of how much people in similar situations are pulling down. Salary.com offers data for nonprofit positions, as do The Wall Street Journal's Career Journal, Wageweb, Salary Expert, and College Recruiter.com. The Chronicle of Philanthropy does its own salary survey each fall, and you can find reports of other salary surveys here. The data you find will "show you how much people in similar circumstance are making, but you should then adjust the number up or down, depending on the value that you bring to your employer," says Steven Rothberg, president of CollegeRecruiter.com, in Minneapolis.

When you've done your homework, make an appointment to talk to your supervisor. Pick a time when your boss is relaxed, and make the appointment to discuss your performance. Don't say straight out that you're going to be asking about a raise, or you might get a hasty and unconsidered "no," says Ms. McMeekin.

Make your case, and be ready to hear the other point of view -- the things you haven't done so well. "Listen to the boss, and acknowledge their point of view," says Janice Calnan, an Ottawa management consultant who works with many nonprofit groups. "Let them know you've really heard them. Ask questions about their perception of the situation so you can really understand where they're coming from. Then, when you feel that they have said all there is to say and you have acknowledged this, return to the positive things you have done."

If you get turned down, don't just slink away, says Ms. McMeekin. Remember, if your organization is truly cash-strapped, there are other forms of compensation. Ask for other things you might want instead of money: more vacation time, more training, trips to conferences. While these perks also cost your employer money, they sometimes come out of a different budgetary "pot," she says -- one that might be easier for your boss to dip into.

Also, set a date to review the situation again -- and make sure you ask for specific, measurable performance goals so you'll be well-armed for the next discussion, says Chris Fusco, a compensation analyst who specializes in nonprofit groups at Salary.com, in Wellesley, Mass. If you don't get a fatter paycheck this time, you'll have a far better shot of getting one the next.

"Everyone needs to realize that nonprofits have to have some administrative costs in order to fulfill their mission," says Ms. McMeekin. "The better the people who are running it, the better the mission will be accomplished, and the administrative costs are going to go to someone. Just because you've chosen to work at a nonprofit organization doesn't mean you're not going to make any money."

Got advice about getting a raise during tough economic times? Share your thoughts in the Job Market online forum.