Inflation and staff cuts due to restructuring due to this scenario have been topics of conversation, both nationally and globally.
According to the National Administrative Department of Statistics – DANE, for February, the annual variation reported by the Consumer Price Index (CPI) was 13.28%, that is, 5.27 percentage points higher than that communicated in the same month last year, when it was 8.01%
This situation has generated multiple impacts, both on workers, who have had to reorganize their monthly budgets, cutting expenses and evaluating how to generate more income; as in companies, which have increased their operating expenses and in some cases, laying off employees, to face this inflationary reality.
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Parallel to the above, the workforce has begun to prioritize their well-being within their jobs, requesting what they need, such as a pay adjustment to offset increased costs due to inflation.
Andrés Alvarado, Executive Director LHH Recruitment Solutions at Adecco Colombia, affirms that “for their part, companies must begin to review their compensation and benefit schemes and the feasibility of salary increases taking into account the CPI, since all this will have a big impact on payroll costs.”
How to request a salary adjustment based on inflation?
Analyze the situation of your company: It is important to observe what moment the organization is experiencing, since if, for example, it is going through a very strong restructuring, it might not be advisable, so in some cases, it is suggested to seek a conversation with the direct boss or human resources (of according to internal processes) and understand the possibilities to negotiate, prioritizes Alvarado.
Perform calculations: An inflation-based pay raise means asking for an amount that covers basic fixed costs, not an extravagant raise, so before you agree, it’s important to consider how much money is needed each month for it, based on the CPI. In addition, Alvarado recommends knowing the market very well, reviewing salary guides or offers for the same position that is being held, since it will provide a better vision of the salary panorama.
Leverage yourself from your goals and achievements: The results that can be demonstrated and measured, the improvements and efficiency in the processes for which they are responsible, as well as the initiatives that add value to the organization, will always be strategic when scaling the increase request, adds Nohora Martínez.
Sometimes you may find that your employer offers you different options to meet those needs caused by inflation. “Within these negotiations, companies can implement the flexible salary tool, for example, bonuses to use in chain stores, mobilization assistance, connectivity, support for professional development or health plans; so that this increase is perceived by the collaborator”, points out Alvarado.
Common mistakes when asking for a salary increase
The experts list the main failures in the request for a salary adjustment, among which the following stand out:
Not knowing how the company works: From the internal processes of how to manage this requirement, to understanding the moment that the organization is experiencing within the market.
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Lack of preparation in the reasons, indicators and achievements that support this adjustment: The volatility or inconsistency of the results does not favor the possibility of improving income. If there is no continuity in the growth scale or there are unstable peaks that do not allow the performance and efficiencies achieved to be demonstrated, it will not be enough when requesting a salary increase. The argument must be consistent over time, have an impact in the medium or long term and, likewise, must support the management of the collaborator.
Ignore the state of the labor market: Not having a comparative source of the job that supports the increase.
Very ambitious aspirations: For the current economic situation this may not be viable, so it is advisable to be very meticulous with this issue.
