During my time at Nordstrom, Verizon, and Yahoo, I managed hundreds of employees and had just as many conversations about raises and promotions. Some I approved, while others I had to turn down.
I realized that those decisions weren’t always about performance. More often, it came down to whether someone understood the bigger picture — how the company made decisions, how budgets worked, and when to make their ask.
In 2025, those dynamics matter more than ever.
What many employees don’t realize about today’s market
Right now, there are more qualified people competing for jobs in nearly every type of function and company than I’ve seen in years. Hiring has slowed sharply across sectors, even while companies still post roles. Economic growth is tepid, inflation and interest rates remain headwinds, and many businesses are holding the line on workforce expansion.
I recently spoke with a recruiter who told me that for single midlevel strategy and marketing roles at a consumer brand and a tech company, she had several dozen resumés from candidates with top-tier experience applying for each. Employers know this gives them leverage.
This has two realities for people already with jobs. First, companies feel less urgency to stretch compensation to keep you because they know strong replacements are ready and willing. Second, if you do decide to leave, they may see it as a cost-saving opportunity to eliminate your role or put someone less expensive in it.
This doesn’t mean raises are off the table. It means you need to be thoughtful and self-aware about how you ask.
Make sure you know your pay band
Most organizations have pre-determined compensation ranges for each employee level. Employees who hold a certain title need to be compensated somewhere within the range, or “pay band,” for their title.
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Ask HR or your manager where you fall within the pay range for your role. Even if that person won’t share specifics, you’re entitled to know whether there’s room for a raise, assuming you hit certain objectives and the company is in a position to provide salary increases.
If you’re already at the top of the range, focus on positioning yourself for the next level instead of pushing for more in the current one.
Don’t treat base salary as the only leverage
I’ve seen employees become demoralized when their company denies a base salary increase, but they’re missing out on other ways to increase their compensation.
At one retailer, an employee on my team asked for a raise during a year when the budget was tight. We couldn’t adjust her salary, but I was able to secure a performance bonus and a retention incentive in the form of company stock. She ended up doing better financially over a three-year period than she would’ve done with the raise.
Ask about retention bonuses, project-based incentives, stock grants, or some kind of continuing education. Companies often have more flexibility outside base salary because they’re less subject to pay bands and aren’t increasing the baseline that you’ll be paid each year going forward.
Consider the timing of your ask
As I’ve said before, this is one of the top mistakes I’ve seen people make in any market, and it applies even more so now.
I once had a high performer ask for a raise in the middle of a quarter when the business had just missed its numbers. Her case was good, but the timing made her seem oblivious to the reality.
If your boss is overwhelmed, the company is in crisis, or you’ve just missed a milestone, hold off. Wait until you’ve delivered a win, the business has breathing room, and decision-makers are in a better mindset to support you.
Use salary transparency data wisely
I’ve had employees overload my email inbox with screenshots from salary websites, attempting to make a case that they were underpaid. These sites are full of self-reported data that’s rarely specific enough to the company, industry, scope of role, and geography at hand. Managers and HR leaders don’t see them as credible.
Instead, use specific, verified data that’s relevant to your exact situation, including anecdotes you can get from peers in your company and industry. That shows you’ve done your homework and positions you as a professional, not a complainer.
Further, think of it as a starting point for asking HR whether they’re open to conducting a compensation assessment to determine whether you’re eligible for a pay adjustment instead of acting like you’re entitled to one.
Here’s the best advice I give my coaching clients: Make yourself indispensable
That doesn’t always mean working longer hours (although, let’s be honest, sometimes it does). It means doing excellent work on projects that matter most to the company — and making sure the right people know about it.
Visibility and impact are what give you leverage. However, be forewarned that the appropriate way to raise your hand for work and then get credit for it looks different in every organization. Read the cultural and political cues so that you don’t come across as someone who’s always seeking the spotlight for themselves instead of for your team and for the work.
It may still be time to stop pushing and move on
Even with perfect timing and a strong business case, sometimes you’ll keep hearing, “no.” While you may want to be patient during this tight job market, if the goal posts keep moving, or you don’t know what they are, it could be time to leave.
You deserve to know what success looks like in your role and what it will take to get to the next level. Raises are harder to come by right now, but they’re not impossible.
If your company truly isn’t willing or able to invest in you, take that as a sign. The best leverage you can have in your career is knowing when to stay — and whether to move on.
