Request an Inflation Pay Increase with a Detailed Negotiation Letter and the Help of DoNotPay
Inflation is the term used when it comes to the economy impacting the cost of living. This includes basic items like clothing and entertainment, but most importantly, it includes necessary expenses like utilities and food. Inflation is influenced by several factors, including the cost of production, consumer demand, and the housing market. It is a complex system, which is why it's important for employees to understand what they are entitled to and how to justify these salary increase requests to their employers.
Asking for a pay raise can seem a bit intimidating, whether it's via email, letter, or in person. Writing a letter asking for a raise allows for a more detailed and thorough approach at conveying the importance of your salary increase request. Employees are vital components of a business and deserve proper compensation; this is when DoNotPay comes to the rescue by guiding you on how to structure your pay raise letter through samples and even writing the letter on your behalf.
Why Do Companies Give Cost of Living Raises?
Typically, cost-of-living raises are based on the Consumer Price Index (CPI). The CPI measures the change over time in the prices paid by consumers for goods and services, which is ultimately studied and calculated to estimate inflation. It is customary for companies to give annual raises to employees to keep up with the cost of living. This not only directly affects a person's overall wellbeing but also helps the economy thrive.
What Should You Place in Your Salary Increase Letter?
While there are many ways to approach writing a pay raise letter, here are a few other things to keep in mind:
- A summary of your point is a great way to start the letter. Mention how long you've been with the company and why you enjoy working there. Keeping it concise is key.
- State the reason for your request. In this case, the repercussions of the pandemic have increased inflation and the national CPI. In order for employees to keep up with the cost of living and maintain their quality of life, it is a necessary action.
- Justify your reasoning by providing them with your accomplishments and any additional responsibility you have taken on. The pandemic also caused companies to cut back on their staff, which required the remaining employees to take on a larger workload.
- Mention the amount you 're requesting. Get straight to the point on what you expect. The recommended number is roughly six percent of what your current salary is.
- A closing statement is a great way to include if you are willing to negotiate and reiterate your appreciation for the company.
Make sure to do your research, whether it's by contacting HR to get an understanding of the standard procedure or looking into other companies and how they calculate their average increase. This will help you leverage your request. Also, schedule an appointment with your manager ahead of time, rather than bringing this up unexpectedly. If they are caught off guard, they may not have the time to hear you out. Proposing a pay increase takes thoughtful time and consideration for both employee and employer. DoNotPay does the research for you and can articulate what you are requesting effectively.
How Has the Pandemic Affected the Cost of Living?
The Covid-19 pandemic, unfortunately, put people out of work, thus causing supply chain disruptions and small businesses at risk of closing. Due to layoffs and lockdown, the production of parts for goods at these supply chains has slowed. This, in turn, causes pent-up demand, ultimately triggering higher costs for goods and services.
For a better picture of how this directly affects the cost of living, let's take a look at the housing market: To balance out the economy, the feds lowered interest rates significantly, which led to buyers offering more, increasing the median listing price. For those of us who had been saving up for a certain price range, we have now come to realize we can no longer afford what we had anticipated.
What Are Some Convincing Arguments to Include in Your Letter?
As we've mentioned above, the pandemic has halted many of our lives. Many people put purchasing a home or even their weddings on hold simply because of the influx in demand and higher costs. DoNotPay has done the research and has a thorough understanding of the legal jargon needed to make a valid argument. Here are some tips on what to include in your letter:
1. Your tenure at the company and the accomplishments you've had during your time there.
2. A comparison of your salary to regional and national averages for comparable positions.
3. Inflation rates and cost-of-living increases as reported by the consumer price index.
4. A clear salary adjustment ask.
Why Use DoNotPay for Your Salary Raise Request Letter
When you use DoNotPay, preparing your salary request letter is as easy as clicking a button.
|Easy||Filling out our form is way more intuitive than combing through inflation and salary data.|
|Fast||We’ve made the process fast because we know the alternative of doing the research and writing the letter yourself is quite slow.|
|Successful||Pay raise letters created by the DoNotPay tool take your personal information and track record at the company to heart to compose a persuasive argument on your behalf.|
How to Submit an Inflation Pay Raise Using DoNotPay
Remember, DoNotPay can assist with pay raises no matter what industry you work in. If you want to but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Enter the name of your company and supervisor as well as how long you have worked at the company.
- Select which industry your job position falls under so we can find the right year-over-year wage growth.
- Enter the salary increase (as a percentage) you would like to ask for. The recommended number is ~6%.
- List your recent goals and accomplishments to make a more convincing argument for your raise.
- Choose whether you would like us to email this request to your manager/supervisor on your behalf. If not, we'll generate the request as a PDF that you can deliver to them yourself.
What Else Can DoNotPay Do?
Asking for pay increases is just one of the many problems DoNotPay can help you navigate. We cover complex issues like:
- DMV appointments
- Help with bills
- Payday installment loans
- Parking tickets
- Discover and apply for scholarships
- Request sick leave