5 Tips for Negotiating a Pay Raise During Inflationary Times

A new survey, by financial services provider SoFi at Work and HR research advisory Workplace Intelligence, found that 51% of employees are more stressed about their finances today than they were during the height of the pandemic.

So, what is the “magic number” employees have in mind for a pay increase this year  - a number that could help alleviate this financial stress? According to a recent survey:

-       A 10% raise was the most desired increase;

-       A 7% raise was the next most desired increase, and

-       A 3% increase would at least be of help.

However, without negotiation, most employees will not achieve these increases. Fewer than 10% of employers plan to offer more than a 5% salary increase in 2022. Most companies will offer at best a 3% pay bump.

With inflation at @ 8%, every dollar counts. At Transition Strategies, we believe employees should take charge of their own destiny by preparing, and effectively advocating, for meaningful pay raises. Here are 5 tips on how to negotiate a raise:

-       Quantify “What Have You Done For Me (the employer) Lately.”  Use numbers to show your positive impact upon the business in an objective, not subjective, way. Example: “I closed the ___ deal on time and under budget, bringing $X million to the bottom line.” 

-       What Has Changed?  For example, “Since I’ve been in this role, it has evolved so that I now have these significant new responsibilities______. I am also now supervising __ employees.” 

-       What are Market Rates?  Do your research to know what people are being paid who do what you do at other places, as well as within your organization. For example, what have recruiters offered you/others for the same or similar roles? Check www.salary.com  and www.glassdoor.com. 

-       Time Your Ask.  Collect examples of your objective, measurable achievements on-going throughout the performance year and schedule time with your boss to discuss your request for a pay raise months in advance of a performance review. Companies have timelines for getting budget approvals, and you can’t miss those deadlines. 

-       Attitude. Be positive, not critical or threatening. Express how you want to continue to drive success for the boss, the team and the company.

We have found that planning and preparing with our clients for these important raise negotiations can make all the difference in a successful outcome. Don’t leave these matters to chance – prepare to be your own best advocate!