Prices are surging across the country as the annual inflation rate in October reached 9.06%, the highest in 30 years. This has resulted in high gas prices, winter heating bills, and consumer goods. Should you also bring up this consumer concern with your boss when you ask for a raise?
Pay conversations typically take place during performance reviews and budget discussions. According to data from The Conference Board, a nonprofit research organization, the median salary and raise increase for 2021 will be 3%. Employees should ask for a cost-of-living increase greater than 3% to offset inflation.
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Despite rising inflation, there are times and places to consider. HR and career experts offer these words of caution:
Don’t Centre Your Raise Request On This
Several women of color, her client base, make the mistake of citing inflation as an excuse for a raise, says negotiation coach Nadia De Ala. “It sounds easy because it is neutral; it is not personal,” she said, citing the worry clients have of “Well, what if they don’t agree that I bring value to the company?”
When negotiating a pay raise, the main point we want employers to focus on is the value you bring to your work, she said. This can backfire if you mention it explicitly in a raise request. Before negotiating, you should research how the cost of living affects your market value.
Your employer’s expenses are likely to rise because of inflation, which can be used as an argument not to give you a raise. De Ala said it cannot be the only reason their business costs are likely to rise.
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Discuss Cost-Of-Living Increases
Separately
Performance isn’t a reason not to bring it up in a raise request. According to Daniel Space, a human resources consultant, an annual merit increase is not guaranteed unless a contract states otherwise. Since inflation affects everyone’s salary, he recommends discussing cost-of-living salary increases separately.