With 8.6% inflation — the 40-year high — many people are experiencing a pinch in their wallets as food, gas and rental prices rise. If you have not received a raise in the past year, it may be time to negotiate higher salaries. Inflation is a good negotiating tool because it is an objective benchmark, says Andres Lawres, managing partner at Shapiro Negotiations Institute, a consultancy consulting firm.
“I don’t ask for an increase in arbitrary reasons like” I’m a very good worker, “he says.” Your boss may or may not agree, but inflation is well documented. [when it comes to buying power.]”
Ben Cook, CEO of salary consultancy consultancy Riva, tells his clients, “If you don’t raise 8% pay this year, you’ve got a pay cut.” “Assuming you didn’t do poorly that you deserved a pay cut, it’s time to ask for a raise,” he says.
But it’s easier to tell than most people do. Cook says listening to the hike feels like a confrontation. “Most people don’t like confrontation,” he says. “It’s hard to visualize the cost of negotiating. It doesn’t feel like someone is stealing money from you, but it’s money you don’t earn. In fact, it’s the same thing.
Cook says many people will quit jobs unnecessarily because they don’t give their current employers the chance to improve their compensation. Instead of avoiding unpleasant conversation, consider these strategies to ease the situation.
Plan what you’re going to say
The first step is to prepare. It helps to write the script. The goal is not to read word by word; This is to get the key points firmly in your mind, says Lares.
“The conversation is emotional and can derail quickly,” he says. “Manage emotion by knowing and practicing what you’re going to say. By the time you get to a real meeting, you feel like you’ve already had a conversation, which gives you more confidence. It’s probably one of the most powerful aspects of conversations that people overlook.
Start with inflation (but don’t end it).
Inflation is a good excuse to have a conversation. Laureus suggests to start off by saying, “I want to chat with you about the rise.
But the whole conversation should not be entirely around inflation: “They want to keep you,” says Lares. “When they are paying you in part to cover inflation, they think you’re a productive member of the team going forward. Be very clear about that.”
Come up with the facts
Have as many objectives as possible when you ask for a hike. Instead of blaming inflation, get real numbers. The US Bureau of Labor Statistics Calculator shows how high prices affect your wallet. For example, $ 150,000 in May 2021 now has a purchasing power of $ 138,145.
“Tell your boss, ‘I’m doing $ 12,000 less now than last year,'” says Lares. “It shows to the other party you thought.”
Also, come up with statistics that tell the company your value. For example, specify that you have created $ X in a new business, have 100% employee retention in your department, obtained X number of new clients, or submitted X number of billable hours.
“The more specific you are, the more confident and conviction relays, this is really important,” says Lares.
Look for a win / win
Instead of giving an ultimatum, “Give me 20% or I’m walking,” approach your boss with a supportive attitude.
“You want to be polite and respectful,” says Cook. “Remember, companies don’t negotiate, people do. You’re talking to your boss. Your goal is to make your boss advocate on your behalf. Learn why your boss is spending internal political capital to get you more money.
Cook adds that negotiation should be a joint problem-solving exercise. “Remember, the company isn’t out to get you,” he says. “You share the same end goal. You come up with creative solutions that meet your needs and increase their interests. This should be a win / win conversation.
But be prepared for the “no”
It is possible to refuse your request. When someone says “no”, it is important to decide whether or not it is currently.
“One of the biggest mistakes people make is internalizing the‘ no ’,” says Lawrence. “They see it as a reflection of their perceived value, which may or may not be.
When you ask “no”, the next step is to table the request with the idea that you intend to bring it back later. Lawrence suggests, “I understand that this cannot be done at the moment. But when can we solve this again, because this is really important to me? ”Then put that date on your calendar to make sure it doesn’t slip.
It will help to clarify the steps to a “yes” eventually. Cook asks what three things you should do to get a raise in the future. “Then start working on those three things,” he says. “You lay the groundwork. So when you have the next review conversation, you’re ready.”
Remember, your salary increase is not what your boss has in mind, says Lares. “When you go into negotiations, you want to be ready so you can do it safely and energetically,” he says.