Asking for a raise can be challenging even in a booming economy. In today’s business climate, increasing your salary may seem impossible. Yet, with careful planning and the right approach, that desired bump in your earnings may be within reach.

Although the United States economy is emerging from the economic downturn and many sectors have stabilized, most businesses remain cautious about their future prospects. Keeping operational costs low and maintaining modest budgets is still the rule of thumb across a range of industries, but as pay freezes begin to thaw, the odds of getting a raise are significantly improving. The main challenge now for employees ready to earn more is convincing their managers that they’re worth it.

According to a March report from compensation surveying firm Culpepper and Associates, 14 percent of companies plan to freeze salaries in 2010, down from the 37 percent who froze salaries in 2009. Since September 2009, 70 percent of companies who had pay freezes in place have unfrozen salaries, and only 1 percent plan to reduce salaries in 2010. Average base salary increases in the U.S. are expected to climb from 1.66 percent last year to 2.77 percent in 2010.

Moreover, the Culpepper report finds that “[n]early 70 percent of companies have a base salary philosophy with an objective to either match or lead the market and pay salaries at or above current market levels.”

Given the improved salary outlook, attempting to obtain a raise at work is a much more feasible option today than it would have been a year ago. But although it has gotten easier, it is by no means easy. Convincing your superiors that you deserve to earn more requires preparation and a careful approach.

The first step in obtaining a raise is to determine the value of your skills, talents and work experience to figure out how much you could or should be making. Compensation research firm PayScale recommends using online salary calculators, checking job listings and examining current pay ranges to get a better impression of your worth in the job market.

Once you’ve gotten a clearer picture of your value as an employee, it’s important to prove how much of an asset you have been to your company. Show your superiors how much money you have made or saved for the business, and provide examples of every time you have contributed positively to the organization’s bottom line.

“Even if you believe your work ethic and results are the stuff of office legend, you’ll have to remind your boss of everything you’ve accomplished over the previous year,” CBS MoneyWatch explains. “Pull together a presentation or portfolio that showcases the quantifiable results of your work.”

Of course, the most important step is actually talking to your manager about your prospects at the company and making it clear that you are interested in getting a raise. Timing is important in these situations because your manager’s receptiveness may depend on how your department or the overall business is doing.

“Most employees wait for a review period. But the best time to do it is right after you do something really great, or right after you get kudos,” Cynthia Shapiro, a career and business strategist, tells the Wall Street Journal. “If [the company] just had big layoffs or lost a major client, that is not the right time.”

BNET’s Entry-Level Rebel blog provides some tips on how to make the raise meeting with your boss a successful one:

• Be assertive. Try to check in regularly with your boss, schedule your next performance review at your current one, and make it clear that you’re planning to discuss a raise when you set up a meeting for it. This will make the salary conversation easier for both parties.
• Research and prepare. Put together a set of talking points before meeting with your boss, including a target salary, the research supporting your target salary and a list of your past accomplishments and future expectations.
• Practice. Writing everything down beforehand may not be enough to prepare you for the actual meeting. Trying practicing your key points and rehearsing how the conversation might go.
• Negotiate. Try to define your target salary as a range rather than a set number so you can be flexible when bargaining with your boss. If there really is no more additional funding in the budget, look for non-monetary alternatives, such as more time off or better perks. If all else fails, negotiate again.

Even with a thorough strategy for increasing your salary, getting a raise is never a sure thing. But regardless of the outcome, making your expectations known to management can be helpful for your career in the long run.

“In tough times the people that [companies] want to reward are the people who are producing value for them,” salary negotiation coach Jack Chapman tells the Journal. “If there is some value you can produce and other people can’t, that makes you more eligible for a raise. Focus on making yourself indispensable.”

Resources

2010 Salary Increase Budgets: Salary Freezes Thaw as Confidence Improves
Culpepper and Associates, March 2010

How to Get a Raise During a Recession
by Bob Rosner and Sherrie Campbell
PayScale

How to Get a Raise in a Recession
by Eilene Zimmerman
CBS MoneyWatch, Sept. 22, 2009

How to Get a Raise in a Recession
by Ruth Mantell
The Wall Street Journal, March 16, 2009

Five Tips for Bagging a Raise in a Recession
by Jessica Stillman
Entry-Level Rebel (BNET), Sept. 14, 2009