The worldwide social and commercial networks experienced severe disruptions as a result of the recent pandemic. Businesses transformed their working practices and employees started working from home. Furthermore, employment losses increased, and the government was forced to step in to help fill the gap. However, the reality is that now is the best moment ever to ask for a pay raise. If you didn’t get a sizable salary raise this year due to the rising cost of living, you are actually losing money.
Inflation reached a 41-year high, and consumer costs increased 9.1% in the 12 months as a result of an unprecedented rise in petroleum prices. In addition, salary checks are not increasing at a rate that matches the growing expense of living.
While workers are asking for pay raise, some small businesses find it difficult to do so. This is justified by the fact that paying for increased energy costs at the same time as increasing salaries to keep up with inflation.
Why is the right moment to ask for a pay raise?
The most common belief that negotiating a wage could cost one their employment is the most typical error regarding salary negotiations. Employees today have power in the job market due to the current workforce scarcity. This particularly happened due to the increase in online employment possibilities.
In addition, companies are aware that replacing employees costs more than raising their pay. Companies now evaluate wages several times a year and give increases to new employees after just a few weeks on the job. In the meantime, managers cope with a problem at the expense of living caused by soaring inflation.
For example, an employee’s replacement can cost up to 60% of their yearly salary, with total expenses varying from 90% to 200%. Actually, employee retention typically boosts the company’s output and profits. So, one reason businesses are increasing wages for current workers is the possibility that workers will depart for jobs with larger paychecks. For that reason, more than ever, some employees are discovering that changing employment results in a higher salary.
Tips for achieving pay raise
In particular, 60% of workers, according to Glassdoor, take the first wage offer they receive. That is a significant number of lost chances and unclaimed amounts of money. When you get the offer letter in your inbox, negotiations start. But before doing that, you must be certain of the kind of pay you want to talk about. Don’t let your objectives be overshadowed by your focus on salary if the bigger image for you is a promotion and a larger position.
Furthermore, this isn’t the moment to request an increase if the business is struggling. You might be conscious of the company’s cash situation as an employee. Watch out for red flags like expenditure reductions or job cuts. Additionally, you should request a quicker review period if you regard this promotion as a stepping stone toward the executive level.
First, take into account your schooling, years of experience, time spent working for your present company, and any specific abilities or qualities you can offer. Use specific figures whenever you can to demonstrate success. It’s best to make a salary increase request in person and privately.
If you and your boss aren’t in the same location, try to have the discussion via video call. In addition, before the meeting, employees should prepare and rehearse things they will say at the meeting. Lastly, be prepared to answer some questions your boss will ask you at the meeting.
In a nutshell
While it’s the best time for asking for a pay raise, employees have to be aware of their own environment. So, it is crucial as an employee to know their own position and worth before going into the serious negotiations. Furthermore, the worker has to prepare himself for various scenarios of negotiation for him to achieve any progress on that matter.
Preparing yourself and knowing what you want to achieve is the first and most important step in getting a pay raise. Being ready for questions, explanations and backing that up with some facts will increase an employee’s chances.
However, it would be more logical to begin negotiations when economic circumstances are stable, which is what is happening right now.
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