Foolproof Tactics For Getting a Cost Of Living Raise
(Daily360.com) – It is no secret that inflation rates are rapidly soaring. With the cost of living rising, many people are struggling to afford and budget for basics like food, housing, health care, utilities, clothing, and taxes. For numerous employees, more than the normal nominal income or the average cost of living (COLA) raise may be needed to leverage inflation and the cost of living.
Most companies typically offer their workers a 2-3% cost of living adjustment on their income annually. With the current inflation rate being 8.2% year over year, employees may need a boost on their COLA to cope well with the current economic climate.
Employees are entitled to request a pay rise, but employers also have the right to turn down the request. This requires workers to know the correct period to ask for an increase in their salaries. Below are more tips that employees can use to assess the situation and formally ask their employer for a more reasonable cost of living raise.
Gather Data and Numbers
Before asking for a raise, it is essential to gather all your past and recent accomplishments while working for the company. The data and numbers will help show the value you bring to the company, making negotiating your raise easy. Make sure you present your boss details of how the company or department has directly benefited from your work or how your team has played a role in increasing sales.
You can also provide details of important projects you have been part of and your role. Besides your current accomplishments, it is also essential to illustrate what you will bring to the company in the future. Finally, look also for positive reviews and feedback from your clients, which will help support your accomplishment.
Check the Financial Health of Your Company
If your company is struggling financially, there is a high chance that they will be reluctant to adjust an employees cost of living. As mentioned earlier, knowing the right time to request a raise is one of the main secrets of successfully negotiating for a pay raise. There are numerous signs that one could check to know how their company is faring financially.
Some signs that may indicate that a company is facing financial distress include declining relationships with financial institutions, layoffs, a cutoff in spending, and a decline in sales. You can also search for current news about your employer or company to learn about their financial situation.
Check the Salary Trends
Checking salary trends can also help you determine how much of a raise you should ask for. Look up salary data for similar job posts to get a general sense of the salary within your current job market, education, accomplishments, or level of expertise.
With this information, you can analyze how the salary trends have been stacked against the inflation trends or the average cost of living in your state. This will help you determine the monetary value of your work or identify a target pay increase.
Consider Benefits Other Than a Monetary Pay Increase
When negotiating for a pay raise, you should be flexible and be open to other benefits or perks which might be equivalent to your desired monetary increase. These includes:
- Health insurance coverage
- Paid family leave
- Paid time off
- Ability to work remotely
- Travel benefits
- Extra personal time off
- Retirement time benefits
Set a Meeting
One of the best ways to request a pay raise is through an arranged meeting. The meeting can be held in a room with a closed door or through a video call if you are not in the same location as your manager. Requesting a salary increase through email or in common work areas is not advisable.
Ensure to prepare what to say during the meeting by rehearsing your script or creating strong opening lines. After the meeting, you should follow up your request in writing, describing the discussion details.
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