How to ask for a raise–even in this economy

If you’re still working in this economy, I’m sure that you’re really grateful to just have a job when so many folks are getting laid off. But still, with living costs on the rise, and some of us taking on additional job duties because of downsizing, you may also feel like you’re getting short-changed.

While it may be difficult to ask for a pay raise right now, it’s not impossible. The trick is to show your manager how much you’re worth.

Here’s a game plan to get that bump you deserve:

Know your market value
How does your salary stack up? Are other people with the same job title and experience making much more than you? One way to find out is to speak with a recruiter in your industry. Recruiters are very knowledgeable when it comes to the range of pay and benefits for positions similar to yours, and can give you a better idea as to whether your compensation package is competitive.

Another way to find out is to check out sites like Indeed, which has a salary search. Or try PayScale.com, which has a more detailed comparison service.

Make a list of accomplishments
What major projects have you worked on in the past year? Has your job grown from the original job description for which you were hired? Write down all the milestones you’ve been hitting, along with any additional roles you may have taken on in this recession. If you’ve made or saved the company money, list those numbers too.

Are your skills in demand?
It’s important to be aware of the competition in your given industry. For example, there is currently a big demand for health care workers and software engineers–too many openings, too few qualified applicants. If you’re lucky enough to be in a situation like this, the cards are stacked in your favor. After all, your boss is probably aware that it won’t be easy filling your position and, if you’re doing a fantastic job, she will be more motivated to keep you.

Conversely, if you’re in a field where there are lots of qualified job candidates and very few openings (e.g. marketing, graphic design), you may want to wait until things start picking up to broach the salary issue.

Consider your company’s performance
Is your company struggling with its financial spreadsheet and, as a result, laying off employees? If so, it may be poor taste to ask for a raise during this time. However, if your company is hiring–even if it’s only a few positions–you may be able to make a case. Just be sure to do your research, list your strengths and accomplishments, and gauge your competition.

It’s all about the approach
When you request a meeting with your boss to discuss a raise, it’s often not what you say, but how you say it. Don’t ambush her. Let her know you want to discuss your expanding role, and that you want to be on the same page in terms of responsibilities and compensation.

Forbes.com suggests this technique:

“Don’t say, ‘You’re underpaying me,’” says Doug Arms, chief talent officer for Ajilon Professional Staffing. “Say something like, ‘Over the last year we had very specific targets in the organization that I had a vital role in assisting the company with. That, combined with the research I’ve done on current market conditions, makes me feel that my position here is worth the fair market value. I’d like to have a conversation to discuss my value to the organization.’”

It’s not always about the money
Consider perks like vacation time, work-from-home options, health benefits, or reimbursement for education and training. If money is tight, you can try negotiating for other things that aren’t in a paycheck, like a four-day work week or an extra week of vacation.

Have a backup plan
Chances are your boss won’t grant you a raise on the spot. Moreover, managers have to consult with the accounting and human resources departments to ensure that there is money in the budget, if the raise is still within your grade level, etc.

If you are turned down, ask what would it take to get a raise, and if you could meet in six months to determine whether you’ve hit these marks.

Here’s an interview with an expert for more advice:

Good luck!

Bank fees rise as lenders try to offset losses

Even now, after all those bailouts, banks never seem to tire of dipping a little deeper into your wallet. Despite the tough economic times and increased scrutiny from Washington, they are keeping most fees at record highs, and are eking out slight increases on others like overdraft charges — a step they rarely took during past recessions.

The result? Americans are paying more to save and spend their money. Full story

Stimulus bonus = more money in your pocket

Get ready for a fatter paycheck. The “Making Work Pay“ tax credit takes effect on April 1, which means most taxpayers will soon see an increase of about $30 per paycheck in their take-home pay. Individual taxpayers could receive up to an additional $400; $800 a year for married joint filers. The tax credit is available for 2009-2010.

Sounds like fantastic news, right? There are a few things to consider though, before you go spending all that extra cash:

You have two jobs: If both your employers pay the full tax credit, you may actually owe Uncle Sam money at the end of the year. To avoid this, check with your employers to see if they’re withholding the correct amounts.

The credit doesn’t apply to everyone: This tax credit will be calculated at a rate of 6.2% of earned income and will phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 for married couples filing jointly).

There’s a little more fine print, but overall the tax credit lets most people get more back. The government hopes these workers will turn around and spend the money to boost our sagging economy.

Read what the IRS has to say about the credit. CNN Money also has a thorough article on what you need to know about the stimulus money.

A lot of people have been saying they’d rather get a lump sum of $400, while others say a slow distribution of roughly $30 per paycheck means people are more likely to spend the extra cash… and that the economy really needs it.

What do you think? Also, what do you plan to spend this extra money on?