Can you get a cost-of-living raise? Here's how to ask

Can you get a cost-of-living raise? Here's how to ask

Click the link above to read the full article. The article was published on November 28, 2022 and written by Shonnita Leslie at Money Under 30. Another great article from Money Under 30.

The article gives a few tips for approaching the conversation with your boss and discussing a cost-of-living / performance raise. Believe it or not, every employer isn't offering a cost-of-living raise automatically! At the grocery store, gas station, rent and interest rates increasing, inflation is taking a toll on Canadians. Has your wages increased? 

The author Shonnita gives a great background on what a cost of living raise means, what is reasonable and competitive. Psychologically for some it may be nerve wracking to initiate the conversation, but with a plan and an open mind, studies show these conversations are more often favorable for you as the employee.

Shonnita highlights two reasons you could be eligible for a cost-of-living raise. The article is based out of the United States - but we think the reasons are still applicable.

1. The cost of living has gone up. This applies to all of us, no matter where you live. Inflation is high right now, and across the country, the cost of living continues to increase faster than average wages. Plus, it’s impacted by many factors, like the costs of housing, food, transportation, and healthcare. 2. You’re relocating to a new city. Cost of living is not the same in every city. You’re going to pay much more to live in New York City than, say, rural Iowa. Plus, cost of living also varies within cities. Living in downtown Manhattan is much more expensive than living in Albany, New York. If you’re moving to a more expensive city or neighborhood due to job requirements, you should definitely ask for a cost-of-living raise from your employer.

How to request a cost-of-living raise? We think having a plan and being prepared are the first key steps.

On a side note to the article - check out Chris Voss, Never Split the Difference. Chris is a retired FBI Negotiator and offers a Masterclass on the Art of Negotiation in his book. We discussed his book on the first episode of Bantering Bosses (link here). In his book and teachings he discusses how to have the conversation and gives some scripting ideas you could incorporate in your discussion.

Back to how to request and Shonnita's 6-step process. We encourage you to read the article as the details included are excellent.

1. Do your research and know your numbers. 2. Consider if what you already have is better than most. 3. Check your timing. 4. Think outside the box and be creative. 5. Be prepared to cut ties if necessary. 6. Follow up on your request.

One of the more interesting steps to the process we wanted to highlight is step 2. Consider if what you already have is better than most. What is the "invisible" money included in your salary? Are there perks offered at your company that you aren't fully appreciating the value of? Some companies may offer a better environment, more flexibility, retirement matching or pension plans to name a few. Salary is important, but not the only factor. Not having as much money as you want can be stressful, but a bad work environment or no flexibility could be more stressful. Weigh all the variables. Your ask might not just be salary related - it could be for some of these less tangible variables as Shonnita outlines in step 4. Think outside the box and be creative.

A good conclusion Shonnita's bottom line: 

Cost-of-living raises are more and more critical, with inflation driving our daily expenses well above average wages. So don’t be afraid to ask for one. If you’ve done your research, know your worth, and have a plan for whatever the outcome may be, you’re more likely to see the income you deserve.

The article linked and mentioned above was published on November 28, 2022 and written by Shonnita Leslie at Money Under 30. Check out Shonnita's profile here. Visit Money Under 30 here for more great insights - one of our favourite sites to follow.