The Street: Five Steps to Negotiate a Raise During Booming Inflation
“For current workers, layoffs can present an opportune time to ask for a raise—especially in an overall strong labor market,” said Ben Cook, CEO of Riva, a Palo Alto, Cal.-based salary coaching platform. “There are fewer people available to do the same amount of work, creating a vacuum that’s immediately felt across the company.”
“Having data and knowledge about your position, a skill set and high-value contributions can give you the leverage you need to earn more,” Cook added.
Here are a few ideas salary negotiators can put to good use:
Play the inflation card. Career professionals may not realize it, but companies are fully aware that rising inflation (at 8.6% from May 2021 to May 2022) could drive a new wave of resignations from talented employees with other options, unless they address employee compensation. Consequently, right now is actually a good time for employees to leverage economic conditions to ask for a more robust salary.
“Workers should get ahead by presenting the 8.6% number before employers can anchor on a smaller amount,” Cook said. “Know that if an employer is not giving 8.6%, it is effectively a pay cut.”