Why now is the best time to ask for a raise and other perks at work

Now is the time to ask for a raise.

The labor market is extremely tight but recession fears are growing, making it a good moment for employees to negotiate for better pay, bonuses and benefits before it’s too late, experts say.

Job openings are at an all-time high and the unemployment rate is near a 50-year low, meaning employees still have plenty of leverage, especially as high inflation eats away at their incomes. However, layoffs are becoming more common in industries including technology, cryptocurrency and real estate as the Federal Reserve hikes interest rates, markets slump and the housing market cools.

“It’s a job-seeker’s market right now so it’s a good time to ask for perks before companies turn more conservative,” said Lauren Thomas, an economist at job search site Glassdoor.

Here are the top tips from career coaches and financial experts on how to ask for perks.

Read More: Is the U.S. in a recession? How to prepare for an economic downturn

Know Your Worth

The most important piece of advice is to know your worth.

Being able to evaluate your skills and the positive outcomes you’ve brought to the company is the best way to get what you want, said work consultant Lauren Rikleen. She suggests bringing detailed quantitative and qualitative evidence of your performance over the last six to 12 months to back up your claims.

“Keep a file of your track record and come to negotiations prepared,” she said.

Upcoming performance reviews are a good time to have this conversation, as employers expect to discuss output and demands. “The worst thing that can happen is they say no,” Rikleen said.

Read More: Inflation is taking a bite out of employees’ salaries — here’s how employers can help

Understand the Wider Picture

Inflation or a potential recession shouldn’t be the determining factor when an employee asks for a raise or perks. Asking for a 9% raise because inflation hit 9% likely won’t be effective. Yet being aware of how the wider economy, your sector and your company are faring can dramatically improve your chances of getting what you want, Rikleen said.

​​Doing research on vacancies in your industry, the demand for your skillset, perks offered by other companies in your industry, as well as whether your employer is expanding or starting to downsize, could be key in figuring out what to ask for.

“You need to have an understanding of what is reasonable within the market and of how much of a stretch your request is,” she said.

Read More: Ready for a raise? Here’s the number your employees want

Ask Sooner Rather Than Later

Asking for more money now is always better than asking later, said Thomas from Glassdoor. Even if you asked for a raise in the previous year, it’s best not to wait. If your employer says yes, you’ll get to enjoy it sooner, and asking now will reduce the risk of an economic downturn scuttling your request. 

Also, it’s hard to reduce pay or benefits once they’ve been given. 

“It’s possible for an employer to take away perks, but it’s really hard to do because it’s usually hugely unpopular,” she said. 

Read More: HR 101: 6 tips to remember when asking for a raise

Have a Plan

If you want to ask for extra vacation time or a leave of absence, having a coverage plan in place is helpful, said career coach Alice Stapleton. Suggesting who might take over your shifts when you’re away or helping your employer with temporary recruiting makes it more likely your manager will say yes. 

“Details on how little impact the desired perk enhancement would have on the team can make or break whether your request is agreed to,” she said.

Avoid Ultimatums

A “take it or leave it” approach to negotiations often fails, said work coach Hannah Salton. Try and avoid rash responses in the heat of the moment. Instead, thank your manager and ask for time to review their offer, to allow your head to cool.

“You don’t want your employer to shut down. You want to keep the conversation going,” she said.