The word “inflation” automatically associates with rising costs for rent, food, gas, and other basic necessities we cannot avoid. This fact is hardly uplifting, though with a proper approach, one can minimize its negative influence on their wallet.
Instead of complaining and criticizing everything and everybody, consider taking charge of your financial well-being. Start by addressing the impact of inflation on your income. If you see any negative tendencies, it’s a good reason to ask your boss for a salary increase. Of course, we don’t recommend opening the door with your foot and setting up claims – communication skills have never been canceled. There is another way to be convincing, and that’s precisely what this article is all about!
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A famous quote says “Who owns the information, they own the world”. You may not be willing to master the whole world, but becoming the master of your own is essential. For that, one should be financially literate and aware of how global events may affect your personal finances.
So, what exactly does the word “inflation” mean, and what does this process imply? As economics explains, the inflation rate shows how prices have increased over a specific period. One of the key metrics to trace inflation is the consumer price index (CPI) – it demonstrates how consumer prices change every month. It also shows if price changes influence the purchasing power of people. If customers shift their spending away from products and categories that have grown more expensive, their spending capacity got affected.
According to Statista, the annual CPI in the United States has been increasing steadily over the past two decades and is expected to continue its growth up to 2027. Based on the March 2023 stats, the CPI of rent, electricity, food, and housing, which are basic needs for everybody, demonstrated a 7+ percent increase.
Why do you need to know all these figures? Understanding inflation can become a game-changer for you. Here is why:
Finally, being financially literate will help you sound more convincing when negotiating your pay rise with the boss: “Given the inflation rate on food and beverages has reached 7.5%, and on electricity 8.5% since my last salary increase, I recently found myself struggling with covering the expenses on basic things. I assume it would be reasonable to reconsider my remuneration accordingly.”
Asking for a raise due to inflation requires research and preparation. You cannot just point at soaring prices and cost of living – you should be illustrative. Also, don’t be lazy to organize your findings professionally – create a presentation with the help of numerous online graphic design platforms.
Remember that the most powerful argument favoring your salary bump request should highlight that you deserve it, not that you need it. That’s why the inflation argument alone may fall on deaf ears – your employer may also complain about soaring costs. We strongly recommend mentioning such iron arguments as your field’s current salary trends and recent achievements first. Let’s figure out why.
If your company is obviously struggling with finance shortage or is experiencing a downturn in sales, no argument in the world will make your boss give you a pay raise. Under no circumstances should you be pushy or pretentious. Instead, use the psychological trick – express gratitude and appreciation for what you already have and then reveal your requests.
If your company is obviously struggling with finance shortage or is experiencing a downturn in sales, no argument in the world will make your boss give you a pay raise. Under no circumstances should you be pushy or pretentious. Instead, use the psychological trick – express gratitude and appreciation for what you already have and then reveal your requests.
First, articulate your reasons clearly and confidently – first of all, you have to believe that you are worthy of the increase. Second, define specific numbers you want to be approved – you shouldn’t leave the matter to the hands of chance. Reinforce the numbers with the salary rates or market trends in your industry, as well as inflation and CPI stats.
Another trick – try walking in your boss’s shoes. It will give you an understanding of their mindset and perspective on raises. Based on this knowledge, you can come up with more relevant arguments. Remember to demonstrate sympathy and understanding of their position – emotional intelligence helps to establish better and deeper relations with others. Get a book on negotiation strategies and try adopting one of those to make your speech sound more persuasive.
Even if your attempt didn’t pan out, you shouldn’t give in or lose your temper. Train yourself to deal with a negative response professionally. Rejection gives opportunities for growth, improvement, and non-standard solutions. There are several options you may consider if you’ve faced rejection.
Non-monetary benefits and perks may be potential alternatives to an instant pay rise. They include a bewildering palette of opportunities, such as:
Under no circumstances can you accept your boss’ vague promises – let them know you’re determined to find a solution here and now. If they promise a salary increase “a bit later” or “very soon”, define potential timelines and review periods for salary adjustments.
So, it’s reasonable to ask for a raise based on inflation, as it’s a cost-of-living adjustment that affords people the same purchasing power in life. To succeed:
