Get a raise in the face of inflation

The tension in the air recently has been… palpable.

Despite favorable economic conditions, prices of consumer goods and services proceed to rise, the cost of living is skyrocketing, and industries are facing an unprecedented labor shortage — all while staff are placing increasing demands and expectations on their employers.

As an worker, it could possibly feel overwhelming and unattainable to get a raise in the midst of all this. What’s more, some groups face the aforementioned challenges and systemic inequities with regards to searching for higher pay. A recent study by the Bureau of Labor Statistics found that black men earned 76% of what white men earned in the first quarter of 2022, while black women earned 57 cents for each dollar earned by white men. A report from the National Urban League further found that black women earn 38% lower than white men and 21% lower than white women.

While the data shows improvement in equality progress, there remains to be (surmountable) work to be done on pay equity. Today’s environment has made employees more aggressive and vocal about the value they carry to a company. Equally vital, organizations recognize the value of experienced employees, which has led some organizations to recruit talent from other organizations. This has increased the leverage employees should ask for, and in many cases demand, higher pay. With preparation, research, and understanding, employees can ask for a raise with facts (not emotions).

As you prepare to ask for a raise, consider these steps:

Understand what you bring to the team

When you joined the organization, you had a specific set of skills that aligned with the needs of your current role. From soft skills like collaboration and effective communication to hard skills like work experience, degrees, and skilled certifications, you need to take a serious take a look at yourself. Understand how your work over the years has directly contributed to the financial success of your organization and supported your team and the organization in achieving its overall mission, vision, and values.

Understanding your skill set is the start line for assessing the right approach to asking for a raise. Start your self-assessment by reviewing your annual performance reviews out of your managers and company management. Pay attention to your direct contribution to the company’s profitability and the key contributions you made during your employment.

In your area of ​​responsibility, understand where you fit in along with your peers. Understand for those who are a top performer and for those who are seen as a strong collaborator and team member. Analyze your responsibilities in comparison to those of your peers to know in case your responsibilities are redundant in the organization.

Once you gather this information, you will have a more accurate picture of the way you’re valued inside the organization and a higher understanding of how your strengths and performance align with company goals.

Understand the current state of the company

Knowing the financial health of a company is essential. It is significant to know the financial performance of a company during the fiscal 12 months to raised assess whether the company is in a financial position to permit you to receive a raise. If a company is struggling financially, management may take a look at two elements of the business: tips on how to generate revenue (income/sales) and tips on how to reduce controlled expenses. The most significant controlled expense is usually salary, a common reason for layoffs in a company.

If a business is doing great and the financial results for the last fiscal 12 months indicate growth, leaders concentrate on what’s driving financial success and who’s accountable for that success; that is a great opportunity to spotlight and reinforce the value you provide to the organization.

Put facts before emotions

Asking for a raise ought to be about facts, not emotions. Facts don’t should be proven; facts will be assessed and reviewed. When asking for a raise, especially in the face of inflation, the key element to recollect is to let the data drive your decision. Using data removes the emotional context.

Using the facts you may have gathered, from your individual accomplishments to those of the company, combined with industry research on the salaries of similarly qualified employees in your position, will aid you determine the amount you can be asking for.

You will wish to ask for a salary rate that’s consistent along with your position and less than what your supervisors and management are paying. This will likely limit your possibilities of getting your request approved and will indicate a lack of institutional and industry knowledge. Be reasonable and logical in your request for a raise.

Consider what else you possibly can gain

A raise isn’t all the time possible. If it were, you have to be armed with other requests of equal value. From a shorter workweek, distant options, and relocation to more paid vacation time, personal time, or a higher bonus, there are several alternative routes to receive compensation.

Think about what could be most helpful to you and explore alternatives that would impact your day-to-day work. Be prepared to deal with any concerns and discuss the advantages to you and the company. It’s all the time good to have options in hand.

Engage your manager and management team thoughtfully

Set aside a while in your calendar to discuss with your manager about a raise. Come prepared to present your request for a raise and alternatives, if vital. Be sure to offer pertinent facts about your role, accomplishments, values, and private contribution to the bottom line and industry standards. Be prepared for potential questions and even pushback. Stand in your truth and know your value. You can determine if and when to offer in to your request. Be prepared for multiple outcomes, including potentially searching for a latest job in case your appeal will not be granted, settling for another compensation plan or the best end result, receiving the raise you asked for, and continuing to grow and thrive in your organization.

Either way, you will never know what would have happened for those who hadn’t asked.