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The most profane word of the last couple of years is inflation. You don’t need to be told that your paycheck isn’t going as far as it did pre-pandemic and, depending on your circumstances, your expenses may have outpaced your income. One solution to your financial issues is to increase the amount of money you have coming in. You need to boost your salary but inflation affects your employer just as much as it affects you. If everyone has less, how do you get more?
The good news is that inflation is cooling down. After peaking at 7% in 2021, the Bureau of Labor Statistics Consumer Price Index for October 2023 is 3.2%. That’s remarkable considering it was 6.4% in January of this year. It’s dropped every month since. The not-so-good news is that the Federal Reserve wants the rate of inflation to be 2% or less so there is still work to do. The really bad news is that there isn’t anything you can do about it.
But there’s no doubt that a boost in salary would help.
Given all the factors out of your control which are causing inflation, it may seem antithetical to ask for more money, especially when rising wages can also be part of the problem. Here are some tips:
· Yes, you can ask your boss for a raise. But just because inflation is hitting hard doesn’t mean your company will automatically give you more money. Be prepared with metrics. Be ready to present financial facts that justify an increase. Gas. Rent/mortgage. Groceries. Higher interest rates. Collectively, they are a very real pinch. Quantify it. But also show the value you’ve delivered to the company through hard work and revenues.
· Circumstances vary, and yours may have reached a critical point. There is no guarantee you will get a raise. You may get a speech about shared sacrifice and a pat on the back. If your situation is unsustainable, you may be faced with one of life’s hard calls, and it may be time to move on.
· Don’t do anything drastic that will cause unnecessary tension and angst between you and your employer, like threatening to quit. That doesn’t mean you can’t explore your options – but don’t rock the boat. It’s time to show understanding. If you want a realistic chance of boosting your salary you need to approach it with an even temperament.
· Be as patient as you can. If you can wait until your next performance review when compensation increases are a normal and expected part of the review process, you may increase your chance of a favorable outcome. Remember, your employer is feeling the pinch as well, but that doesn’t mean you shouldn’t be earning what you’re worth.
· Don’t act disgruntled. Remember, wages are a cost and your employer is fighting inflation as well. The easiest way for businesses to cut costs is to reduce staff. The easiest staff to cut are discontented employees who lack empathy and the common sense to demonstrate any appreciation for the job they do have. If you bring professionalism to the table, you will have a head start on any salary negotiations.
· If you do make a move, your company may make a counter-offer. That’s not necessarily good news. Be wary of counter-offers; if you accept one, you’re locked in and your company may offset the expense in some other way that may directly affect you. Likewise, employees who have already quit once may have irreparably eroded their boss’s trust, and the company could already be interviewing a replacement.
Philip Roufail contributed to this article.
Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.
