Your company just had layoffs. Can you still ask for a raise?

In today’s job market, many employees are feeling the pressure.

Layoffs continue to make headlines, hiring pipelines have slowed, budgets have tightened, and job seekers are facing fierce competition. For those already employed, this environment raises a tricky question: What’s reasonable to ask for at work right now—and what isn’t?

There’s always the standard wish list: promotions, raises, more flexibility, and better benefits. But in a strained economy, some of these asks may be harder to land—and for many employees, even harder to ask for.

Zety, a career platform designed to make job searching easier with expert-backed tools and advice, found in its latest Pay on Pause Report three in five workers are willing to forgo or accept smaller raises this year due to fears of layoffs and job instability, and 66% avoided asking for a raise altogether, citing economic pressures and uncertainty.

In a job market this unpredictable, where many employees are job hugging out of fear—one question remains: should employees hold off on asking, or should conversations still be happening?

There’s fear in asking

According to career expert Jasmine Escalera, many employees are hesitant to ask for anything right now.

The thought process is: “I should just be grateful to have a job,” or, “I don’t want to ask for more and rock the boat, especially if AI is coming in,” she explains. 

Maybe even, “I don’t want to disrupt what I already have, because I don’t want to then be out in that job market and not even know when’s the next time I’m potentially going to get a position,” Escalera says. 

In today’s job market, employees are often hesitant to speak up, hoping staying quiet will help them maintain their positions—especially since certain requests, like pay raises, are harder to secure.

Pay increases and promotions may be harder to secure

It is true. Certain requests are more difficult in today’s job market, Escalera explains, and pay raises are one of them.

“If layoffs and budget cuts are happening, one of the first things that are going to go is pay increases,” she says.

This also includes bonuses, or any other type of financial component.

“Anything that goes into the budget could potentially go wrong, which is not good for individuals who are in positions where they need to be upskilling. Or they need to be learning more to complement AI, or even potentially just for specific career growth opportunities,” she says.

Promotions also face limitations. As Escalera explains, “Promotions typically come with raises and professional development [or] upskilling opportunities—those are going to be things that potentially go away.

Still, it doesn’t mean employees should shy away from asking, or from putting their requests on their managers radar.

Open the conversation 

A company may not be able to provide pay raises or promotions during a downturn, but that doesn’t mean the conversation can’t happen.

“Even if your company comes out and says, ‘we don’t have the financial capacity to give pay raises right now’, or ‘we don’t have the financial capacity to give bonuses right now’—that does not mean you do not have the conversation,” Escalera says. 

The key is approaching the discussion thoughtfully, focusing on your contributions and the value you bring.

You might say, “I understand that the organization is in financial hardship, or may not be giving bonuses or pay raises at this moment, but I really want to open up the conversation around my work’” Escalera suggests.

Carolyn Troyan, CEO of Leadership360, an HR consulting and leadership coaching firm, agrees it’s important to be thoughtful with your approach.  

“It’s doing it in an emotionally intelligent way,” she says. “After half your team has been laid off, demanding a raise is probably not such a good idea.”

But after the dust has settled and the company is back on steady footing, it’s reasonable to bring it up—or even during your next performance review, if the timing feels right.

When having that conversation, acknowledge the environment and what the team has been through—but don’t let that stop you from discussing your growth with your manager. “Just because a company is struggling doesn’t mean you don’t have a career plan,” Troyan says. 

To your manager, you might say, “Here’s what I want to do over the next two to three years, I’d love to kind of talk about that with you. What opportunities do you see available, even in this environment, for me to learn some of these new skills?”

Commonly, you’re going to hear one of two responses, Troyan explains:

“We really love you, but we can’t do it right now,” which comes up a lot. Or, you may receive feedback highlighting what you need to work on to reach a promotion or raise in the future.

Either way, you’re still having the conversation.

Support and flexibility

Even if a company can’t provide a promotion or raise due to financial hardship, there are other things to ask for.

One of the biggest asks right now is support—support that isn’t monetary, Escalera says, pointing to the same report: Mental health support tops the list.

“What that really shows is that individuals are incredibly burnt out and stressed out,” she said. As a result, we’re seeing more requests for mental health days and other forms of support.

If a company isn’t meeting requests for pay, flexibility, or other forms of support, it may be a signal for employees to reassess their options. 

Even in uncertain times, understanding your value, approaching conversations thoughtfully, and asking for the support you need are all things you don’t have to shy away from.

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