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It’s a ‘worker’s market’: The perfect time to ask for a raise

Wondering when to ask for a raise? Now is the time. Here are three tips to help you get started

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Dollar bills sit on a table.

A pile of dollar bills sits on a table on Saturday, Dec. 11, 2021, following the first-ever Dash For Cash for teachers between periods at the Sioux Falls Stampede game in Sioux Falls, S.D.

Erin Woodiel, The Argus Leader via Associated Press

Critical labor shortages, rising inflation and puzzling supply chain problems persist as we step into the New Year. But all is not lost. If you’re a worker, this is a great time to ask for a raise.

“It’s a worker’s market right now,” Beth Ann Bovino, chief economist at S&P Global, told CNBC News. “Will it last through 2022? I would guess not. But up until the mid-year, I suppose it’s going to hold firm for workers.”

Why is it a worker’s market?

Specific industries like leisure and hospitality are struggling to hire workers, which is paired with the “Great Resignation,” a nickname for the current economic climate where employees are quitting from their jobs in masses.

  • “The people who left the workforce generally aren’t coming back. A lot of that is tied to retirees — the pandemic encouraged more older workers to retire younger,” Bovino explains.
  • “So (workers) are calling the shots at this point in time. There’s a lot of negotiation power that workers have, not just on wages, but also on how many times a week they have to go to the office (depending on the type of work), sign-on bonuses, benefits, etc.,” said Bovino.

  • This is a part of the reason why she expects a worker’s market in the first half of 2022.

Firms expect an anticipated 3.9% jump in wage costs in 2020, making this the highest rate since 2008, per The Conference Board’s Salary Increase Budget Survey. The main reasons for this increase are the “growth in wages for new hires and accelerating inflation.”

  • “Applicants are turning down our provides or short of to barter extra aggressively than they did previously,” stated Kathie Patterson, leader human assets officer at Best Friend Monetary Inc., per the Wall Street Journal.

How to ask for a raise?

If you do ask for a raise, the odds are in your favor. According to a PayScale survey, 70% of employees who asked for a bump in their salaries received one.

Asking for a raise can be nerve-wracking, which is why we compiled some tips for you.

  1. Why do you want a raise?

Are you overworked? Have you taken more responsibility in the past year? Are you paid below the average salary one makes in your position? Answering these questions will help you find the answer to why you may need this raise.

  • “Walking into a conversation where you ask for a salary raise requires having a clear understanding of the market, the value you bring and your financial needs. Raise requests always require justification,” said Chelsea Jay, a resume writer and career coach, per CNBC News.

Also, make sure the timing is right. If your company has recently laid off workers or has a hiring freeze, your request may not be met.

2. Research, research and research.

Before setting up a meeting, understand the pay scales for your role. Then compare how your skills and experiences are valued across the industry by using websites like Glassdoor or Salary.com.

You can also talk to recruiters who can give you advice. Per Forbes, you should quantify your achievements and relate them to how you’ve helped your company achieve its goal. Lastly, create a suggested salary range and make your case for why you deserve more.

  • “Be collaborative. This is not an ‘I win, you lose’ situation. Creating ultimatums puts everyone on edge,” said Kate Dixon, principal and founder of Dixon Consulting, per the report. Don’t forget to showcase a plan moving forward to show your commitment to the company.

3. Plan-B.

After all the research and planning, if your request gets denied, consider other options for negotiation, such as a more flexible schedule, a new certification, student loan repayment, sick leave, ability to work from home and more.

  • “Know your options, understand what motivates you to do a job well done and ask for it,” Jay says, per CNBC News. “Bosses and employers who want and value their employees will always do what they can to keep them.”

Make sure to ask your supervisor what you need to do in order to get that raise. Once you know, keep a list of your accomplishments for each month and how the company benefitted from it.