How to negotiate a better pay package in light of the rising cost of living
From rising utility bills, the hike in fuel costs and increases on thousands of items in our supermarkets, it’s getting harder to eke out every pound these days (never mind the pennies). UK inflation went up to 8.3% in April. That’s its highest level in more than four decades. @guardian: “The Office for National Statistics said the 54 per cent increase in the energy price cap in April, which took the average annual gas and electricity bill close to £2,000, was the main reason for the jump in the consumer prices index from 7 per cent in March.” One way to cope with it all is to get a raise in your salary. All you have to do is bring up the topic of money and negotiate your worth with your head of department or company owner. But that’s easier said than done, of course? Or is it? In this post, we’ll give you some tips on how to do precisely that – and be the envy of your colleagues. Read on…
Why is now a good time to ask for a rise?
In recent weeks, we learned there are more jobs than there are unemployed individuals in the UK. Government statistics show that unemployment levels fell to 3.7 per cent between January and March, while there were 1.3 million job vacancies advertised. It’s the highest discrepancy since records began 50 years ago. And it’s employers who are on the back foot. One reason for this is the Great Resignation. The term was coined last year after thousands of employees decided to leave their jobs and change lifestyles during the lockdown. If lots of people left the company you’re working for, then you’re already in a prime position to ask for a raise.
How much are you worth to the company?
Try and work out a figure. Take into account your experience, responsibilities and how long you’ve been with the company. What are other employers paying for the role you’re doing? You can find out by checking out competitors and online recruitment websites. If other companies are paying more for the position, then use that as leverage. When negotiating, though, remember you probably have benefits too, e.g. gym membership, discount on meals etc. Your boss will likely point these out.
How to negotiate and get what you want
Show you’re worth the raise by pointing out any key achievements in recent times. That could be reaching or exceeding any KPIs you’ve been set. Or, it may be that you’ve boosted your skill set since you started by gaining more qualifications. If you’ve been there for a few years now, you’ll undoubtedly have more experience and understanding of the company culture, to the extent that you may have been supervising others in recent years.
All of these aspects are important and valuable to your company. Why would they want to lose you? If you have confidence and believe in yourself, so will your boss.