How to handle the cost of living crisis by negotiating a pay rise

Asking for a pay rise is not an easy thing to do if you’ve worked for your employer for a long time. As the current cost of living crisis continues to intensify, you may be wondering if you deserve a raise in your salary.

The inflation rate in the UK has risen up to 9% in April 2022, which is the highest it’s been since 1982. With inflation continuing to rise, it’s having a significant impact on people’s wages as they struggle to afford to pay their electricity and gas bills, as well as shopping. 

One way to handle the cost of living crisis as an accounting professional is to negotiate a pay rise. If you are an accountant who is affected by the cost of living crisis, then it might be a good time to ask your employer for a salary increase. 

In this blog, we cover how to ask for a pay rise in your current job while navigating your way around the cost of living crisis. From perfecting the art of salary negotiating, to taking advantage of The Great Resignation, our tips will strengthen your case and secure that pay rise you deserve.
 

 Alexander Suhorucov, Pexels

 

 

Do plenty of research and preparation when discussing a pay rise

When discussing a pay rise with your employer, you should do plenty of research and preparation. While it’s good to be ambitious when negotiating the salary you want, it needs to be realistic and in line with the company’s current financial situation.

It’s a good idea to research typical salary levels for the current job you do from competitors in the accounting industry. Using online salary checkers can be useful as they can show whether your current salary is either in line with the market or you’re earning below the market average.

You also need to make sure that you talk about the contribution you’ve brought to your current employer in your job. In particular, what you’ve achieved in the past year to what you can offer the company. These are topics worth covering with your manager when negotiating your pay rise.

Doing lots of research and preparation means that you can put forward your case well and secure that well-deserved pay rise.

 

Take full advantage of The Great Resignation 

Due to The Great Resignation, millions of people across the UK are leaving their jobs across various industries, which also includes the accounting industry. This is a good opportunity to negotiate that pay rise you’ve wanted for the past couple of the years in your current position.

A survey from PwC found that almost one-fifth (18%) of UK workers are likely or very likely to switch jobs in the next 12 months. If the company you work for has been hit by several resignations and you’ve stayed loyal to your employer, you should negotiate a salary increase now.

By starting the conversation with your employer about why you deserve a salary increase, you can get a big bump on how much you earn in your current job.

 

Perfect the art of negotiating a pay increase in your salary

Negotiating a pay increase in your current job is an art that many people don’t know how to do. It’s important that you want to put the best business case forward towards your manager so that you’ve done enough to get that pay rise you’ve wanted for so long.

The trick to negotiating a pay increase is to go higher than the salary range you quoted. If your ideal salary is £60,000, then ask for a range of between £70,000 and £85,000. Asking for more money when discussing a salary increase with your employer could end up with you getting more than what you asked for.

It’s crucial that you set out the reasons clearly to your manager when justifying your case for a pay rise. From developing your skillset to taking on more responsibilities and managing other employees are just a few things you can highlight in your salary negotiations. By explaining your reasons why you want a salary increase, you will increase your chances of getting it.

 

Consider the timing of negotiating a pay rise

Timing is a crucial factor when it comes to negotiating a pay rise. While you have a good idea of the figure you want, you need to consider that several industries are recovering from the COVID-19 pandemic. If you are requesting a pay rise, then it needs to be backed up with solid results or hard evidence.

Staying up-to-date with your employer’s performance is also essential. They may be in exactly the same position as you are in terms of the current cost of living crisis. It’s worth keeping yourself updated on the company’s financial position and briefing your bosses about how well your sector is performing.

Mentioning the financial context to your boss adds weight to the meeting you have on negotiating a pay rise at the company you currently work for.

 

Conclusion 

We hope this guide has given you the confidence you need to put forward your proposal for a pay increase in your current accounting job. By putting the tips we’ve listed into practice, you can ensure that you put yourself in the best position for a pay rise that’s above the industry average.

If you deserve a pay rise and are looking to make the next step in your accounting career, have a look at our job listings and careers advice on this website.