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Your company is in financial trouble. How can you negotiate a salary or raise?

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As an engineering manager, you know how valuable your skills and experience are in the market. But what if your company is facing financial difficulties and you need to negotiate a salary or raise? How can you approach this delicate situation without jeopardizing your relationship with your employer or compromising your worth? Here are some tips to help you navigate this challenge.

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1 Assess the situation

Before you initiate any salary discussion, you need to understand the current state of your company and its outlook for the future. How serious are the financial troubles? How long are they expected to last? How are they affecting your team and your projects? How are they impacting your performance and your goals? You can gather this information by talking to your boss, your peers, your HR department, and other sources within or outside the company. This will help you determine if this is a good time to negotiate or if you should wait for a better opportunity.

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2 Prepare your case

If you decide to go ahead with the negotiation, you need to prepare a strong case for why you deserve a salary or raise. You should highlight your achievements, your contributions, your impact, and your value to the company. You should also research the market rate for your role and skills, and compare it with your current compensation. You can use online tools, industry reports, or networking contacts to get this data. You should also consider your alternatives, such as looking for another job or switching to a different career path. This will help you set realistic expectations and leverage your options.

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3 Choose your strategy

When negotiating a salary or raise, you should consider the situation and choose the strategy that best suits your needs and preferences. You may ask for a direct increase in your base salary if the company can afford it, or a deferred increase if the company is struggling but expecting to recover. Alternatively, you could ask for a performance-based increase, or non-monetary compensation such as flexible hours or stock options if cash is not an option. It is important to align your strategy with the company's situation and culture.

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Trevor Newlin

Senior Principal Engineer at NXP Semiconductors - retired
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What is more important, more the Money or a Job. Sometimes these are exclusive. Sometimes particularly in smaller companies we can make a difference, that can help to ensure a better raise later on. If the company values you, they will want to keep you. In large companies there is little to no loyalty to the employee. If the company is in trouble, don’t try and negotiate any raise, look at the market place. When a company is in serious financial trouble, leaving can help. Do not wait to lose your job, when possible be proactive, it is a lot easier and puts you in a stronger position to seek a new position from employment.

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4 Communicate effectively

Once you have chosen your strategy, you need to communicate it effectively to your boss or the decision-maker. You should schedule a meeting, preferably in person or via video call, and present your case clearly and confidently. You should emphasize the benefits of your proposal for both you and the company, and avoid sounding greedy or desperate. You should also listen to the other party's response, and be ready to negotiate and compromise if necessary. You should maintain a positive and respectful tone throughout the conversation, and express your appreciation and commitment to the company.

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5 Follow up and evaluate

After the meeting, you should follow up with a written summary of the discussion and the agreed terms, and ask for confirmation and feedback. You should also monitor the implementation of the agreement, and ensure that you receive what you negotiated. You should also evaluate the outcome of the negotiation, and reflect on what went well and what could be improved. You should also update your career plan and goals, and decide if you are satisfied with your current position or if you want to pursue other opportunities.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Trevor Newlin

Senior Principal Engineer at NXP Semiconductors - retired
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Consider how valuable you are to the company., are you afford your greater salary, Get a second position, go into the job market and see if you are worth more. There is no right to a job, and sometimes you will lose. Working hard and being valuable, can help you keep your job in tough times. Sometimes we need to be flexible, and taking a step lower, may be the path to keeping your job.

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Your company is in financial trouble. How can you negotiate a salary or raise?

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1 Assess the situation

2 Prepare your case

3 Choose your strategy

4 Communicate effectively

5 Follow up and evaluate

6 Here’s what else to consider

Engineering Management

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Your company is in financial trouble. How can you negotiate a salary or raise?

1

2

3

4

5

6

1 Assess the situation

2 Prepare your case

3 Choose your strategy

4 Communicate effectively

5 Follow up and evaluate

6 Here’s what else to consider

Engineering Management

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