Cost Of Living Salary IncreaseHow to ask for a raise and get the salary you deserve
Asking for Cost of Living Salary Increase
You have to consider a lot of things when you plan to ask an employer for a cost of living salary increase, especially if your situation is that of a prospective hire negotiating the pay for a new job. First of all, you must be familiar with the compensation package of the hiring company. In some companies, the employment contracts may specify future salary increases based on a cost-of-living index and employee performance. In this case, you must ask the specific index upon which the salary adjustment may be based. The cost-of-living index can vary from place to place, and may also differ substantially from the national index. Check also if the salary adjustments are not based on any cost-of-living index at all.
It is important to establish if any future salary adjustment will be based on a cost of living index, what measure is to be used, and if the pay will not be indexed at all. The cost of living is volatile and increases over time. The real value of the salary you will be getting is likely to be eroded within just one year which will consequently lower your purchasing power. You will then want to ask for cost of living salary increase, in addition to a raise following a meritorious performance. A further complication could arise if you are being considered for employment in a company unit or branch in another location which has a substantially higher cost of living index. In this case, you will need to push for a raise in pay to adjust to the standard of living in your new place of employment.
Check with the company`s human resources department on their policy regarding cost of living salary increase. Also check the periodic cycle by which pay adjustments are made within the company since the annual inflation will affect the value of your salary as an employee. Most companies conduct performance appraisals every year. Confirm if this is also true for your prospective employer, and likewise clarify the parameters used in determining the performance which merits a raise. Increases for sales-oriented positions, for example, are appraised based on specific sales targets for the year. Staff positions are often gauged based on specific objectives set for a certain period. Different job positions can have different gauges in performance, so it is important to know the rules of the ball game from the very start so to speak.
Asking for a cost of living salary increase can also require some special tools to measure with some degree of accuracy the amount to be pushed at the negotiating table. One important tool for this purpose is a salary calculator which can input cost of living index and other statistics. Check the link below for an e-book which provides several of these tools useful in salary increase negotiations. Titled "The Ultimate Guide to Salary Increase", this e-book contains many other devices which can facilitate not only your preparation in negotiating a cost of living salary increase but also present some of the best pay raise pitches suitable in various employment scenarios.