Main image of article How to Ask for a Raise During Layoffs and Budget Cuts

Summary

When companies tighten their belts, tech professionals often feel like asking for a raise is out of the question. Layoffs, hiring freezes, and budget cuts create an atmosphere of financial scarcity and job insecurity. But here’s the truth: raises still happen, even in tough times. Landing one simply requires a more strategic approach, meticulous preparation, and a bit of finesse.

If you are consistently delivering strong results and driving impact within your organization, you can construct a compelling case for increased compensation. Let’s talk about how to have a conversation with your manager, and the actionable steps to take if the company’s response to your raise query is “not right now.”

Before initiating any discussion about your compensation, it is crucial to conduct a thorough assessment of your company’s financial health and your team’s morale. For example:

  • Has your department been directly affected by recent layoffs?
  • Are there widely implemented hiring freezes or spending restrictions in place across the organization?
  • Have company leaders publicly communicated the need for cost containment or a more conservative financial outlook?

While the answers to these questions can affect your timing, do not allow this contextual awareness to deter you from your goal. Instead, leverage it to inform and adjust your message accordingly.

For example, asking for a raise in the immediate aftermath of a significant round of layoffs would likely be perceived as tone-deaf and insensitive. Approaching the conversation after the dust has settled, and when your clear and continued value to the organization is undeniable, is a far more appropriate and effective strategy. Your ability to demonstrate empathy and strategic awareness will strengthen your position.

Despite widespread budget cuts, raises and promotions often remain on the table for high-performing individuals. Why does this phenomenon persist during periods of financial constraint? Retaining top talent is consistently more cost-effective than the arduous and expensive process of replacing them.

When you can demonstrate that your contributions are critical to the company’s continued success — especially during lean times — you effectively shift the conversation from a personal request to a sound business decision. Companies are always looking for ways to maximize their return on investment, and investing in proven, impactful talent is a clear path to achieving that.

Your manager is significantly more likely to advocate for your raise if you can clearly demonstrate how your work directly supports critical business goals. Do not rely on vague descriptions; instead, use clear, quantifiable results to tell the story of your contributions. Think in terms of specific achievements that illustrate your value:

  • “Improved system uptime by 18 percent, directly reducing customer complaints and improving overall service reliability.”
  • “Optimized backend processing, resulting in a reduction in cloud spend by $120,000 annually, a direct contribution to cost savings.”
  • “Spearheaded the redesign of our user interface, which led to an improvement in user retention by 25 percent, demonstrating a clear impact on customer engagement and loyalty.”

Compile a concise list of your most recent and impactful wins. Ideally, these achievements should be directly tied to key business metrics such as revenue generation, tangible cost savings, improvements in operational efficiency, or enhanced customer satisfaction. The more concrete and measurable your impact, the stronger your case.

Before you even consider a specific figure for your raise, invest time in understanding your current market value.

Utilize reliable compensation benchmarks from platforms such as Levels.fyi and the Dice Tech Salary Report. These resources can provide valuable insights into salary ranges for similar roles, experience levels, and industries. Be sure to adjust your research to account for crucial factors such as your geographic location, your specific level of experience, the size and type of your current company, and your specialization within the tech field.

If your research indicates that you are currently underpaid relative to market rates, this data will provide a credible foundation for your compensation request. This demonstrates that your request is not arbitrary but rooted in industry standards.

Timing is paramount when it comes to discussing compensation. Avoid initiating this conversation during periods of company-wide chaos, immediately following major layoff announcements, or when the company is publicizing significant cost-cutting measures. Instead, strategically aim for opportune moments that highlight your value and the company’s stability:

  • Your annual or mid-year performance review: These established forums are designed for discussing performance and career progression, making them natural settings for a compensation discussion.
  • Upon the successful completion of a major project or significant milestone: When your recent contributions are fresh in your manager’s mind and have demonstrably benefited the company, your impact is undeniable.
  • A moment when your impact is especially visible and appreciated: This could be after a successful product launch, a critical system stabilization, or the resolution of a major technical challenge that you spearheaded. Capitalize on these moments of peak value.

Your tone throughout the conversation should be thoughtful and confident, never entitled. Begin by acknowledging the company’s current situation and any financial constraints it may be facing. This demonstrates your awareness and empathy. Subsequently, confidently advocate for your value and contributions.

Example: “I understand that the company is currently exercising caution with budgets, and I appreciate the transparency around that. However, I would like to take some time to discuss my role and my continued growth here. Over the past year, I have significantly expanded my responsibilities and consistently delivered quantifiable results that have directly contributed to [mention specific company goals, e.g., cost savings, efficiency, customer satisfaction]. In light of these contributions and my increased scope, I would be grateful to revisit my compensation.”

When discussing your contributions, steer clear of vague statements like “I work hard” or “I’ve been here a while.” These are not compelling arguments for a raise. Instead, focus on your impact and how your work directly aligns with the company’s current priorities. In challenging economic times, this often means emphasizing cost reduction, customer retention, maintaining stability, or driving critical innovations that will secure future growth.

Example: “My recent work in improving infrastructure reliability directly supported our overarching goal of reducing system downtime and, in turn, significantly increasing customer trust and retention. This directly translates to [mention specific benefit, e.g., fewer support tickets, higher customer satisfaction scores].”

If your manager expresses hesitation or outright flinches at the immediate mention of a significant raise, be prepared to suggest alternative forms of compensation or delayed consideration. This demonstrates your commitment to the company and your understanding of the current financial climate. Consider these options:

  • Revisit in three months: Suggest setting a specific follow-up date, perhaps after key financial milestones or project completions that could free up budget.
  • Consider alternative compensation: Explore options such as equity grants, increased bonus potential, or a title change that reflects your increased responsibilities and could lead to higher compensation in the future.
  • Request professional development benefits: Propose investment in your growth through courses, conferences, or certifications. While not an immediate cash raise, these investments can significantly increase your market value and earning potential over the long term.

Receiving a “no” to a raise in the immediate term does not mean the conversation is over. Use this as a valuable opportunity to understand precisely what would be required to justify a raise in the future. This transforms a setback into a development opportunity.

For example:

“What specific achievements, metrics, or project outcomes would need to happen for me to be considered for a raise in the next three to six months?”

Push for absolute clarity. Do not accept vague responses. Insist on specific metrics, tangible project outcomes, or skills growth that, if achieved, would unequivocally support a future compensation increase. This creates a clear roadmap for your career progression and a measurable target for your performance.

Following your conversation, send a concise, professional recap email to your manager. This email should briefly outline what you discussed, including any agreed-upon next steps, specific goals, and timelines for future consideration. This creates a clear record of the conversation, helps ensure accountability from both sides, and provides you with documentation to reference later. This is a crucial step for your professional development and career management.

If you find yourself continuously delivering exceptional results and consistently hitting a wall with compensation, despite your best efforts and thorough preparation, it may be a clear indicator that it is time to explore other opportunities. The tech job market, while subject to ebbs and flows, consistently has demand for skilled and impactful professionals.

Keep your professional network warm and active, stay updated on the latest job trends in your specialization, and continuously polish your professional portfolio or GitHub profile. Being proactive about your career trajectory, even during challenging times, empowers you to take control of your earning potential.

Asking for a raise during challenging economic times is not merely about increasing your paycheck; it is a critical exercise in long-term career growth. When you frame your request around the tangible business value you provide and demonstrate empathy for the company’s current position, you elevate the conversation from a personal desire to a professional discussion rooted in mutual benefit.

With the right preparation, clear and confident communication, and follow-through, you can absolutely continue to advance your career and increase your compensation, even in the face of economic uncertainty. Your ability to adapt, strategize, and communicate your value effectively will be your strongest assets.