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Kathleen Martin

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As inflation and cost-of-living expenses continue to soar across the United States, workers are stepping up and asking for pay raises to offset costs. Exactly how much of a salary increase should an employee ask for and how can they prepare to make this ask in a way that advocates their worth? And, if you ask for a pay raise but do not receive it, are there any alternative financial options available to employees? Keep reading to find out the answers to all your questions.
How Much Should You Ask For?
Jay Zigmont, Ph.D., CFP and founder of Live, Learn, Plan, said inflation itself is not a reason for a raise. An employer will try to pay market rates. Essentially, a market rate is the median base salary employers pay to employees who work in specific types of occupations in certain areas or cities. 
“If your job, in your area, is within the market rate, it is going to be rare for an employer to pay more,” Zigmont said.
The good news is that employees may leverage data to their advantage. Zigmont said if employees have data that says they are paid below the market rate it may be persuasive to employers. 
Joe Mullings, career expert and CEO of The Mullings Group, said asking for a cost-of-living adjustment (COLA) has not been a standard workplace behavior among those in the professional ranks. However, this standard has gone out the door since the start of the COVID-19 pandemic. While most demographics may ask for a pay increase, those hit hardest by COLA changes are new graduates and entrants into the job market. These individuals have less in savings and are paying an outsized percentage of their salaries for rent, resulting in an environment where new hires are under considerable personal financial strain. In turn, this may impact their work performance or force them to look for a higher-paying job.
Continue reading: https://www.gobankingrates.com/money/jobs/how-high-pay-raise-you-need-to-fight-inflation-how-to-ask-for-it/
 

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