How to Ask for a Raise for Inflation

The key number to keep in mind is inflation, which has been in the 8 percent range for most of the year.

You also should look at current job postings and salary ranges for positions like yours on websites such as Payscale and Indeed. Cohen says checking current salaries is especially important if you haven’t changed jobs in several years.

“When you find a new job, that job is, by definition, the market rate because that company is competing against every other company in the world for your services,” he says. “Once you’re in a job, you become more and more disconnected from the market, and the longer you’ve been there, the more disconnected you are. So, if the company has given you a 2 or 3 percent raise for the last 10 years, you might be making 30 percent more than you made 10 years ago, but the average person getting hired for your current positions at other companies might be making 80 percent more because the market might have changed.”

The important thing to note here is that this research — and any percentage or dollar amount you arrive at — is for your benefit so you know the range of what you’re seeking. In your conversation with your boss, it’s generally more effective to start the discussion without specific numbers.

“If you say to your boss, ‘I want a 10 percent raise,’ that’s a positional statement,” says Cohen. “Your boss has basically three choices: Your boss can accept it, reject it or counter it.”

“But if you approach your boss and say, ‘As you know, inflation has been hitting everybody hard, and I’m no exception. What I’d like to do is talk about my salary and see if we can adjust it, so I can still make ends meet and not lose pace relative to the economy,’ it’s much harder for your boss to say no.” 

Show your boss your value

“One of the things that you bring as an older worker is stability,” says Cohen. He notes that many of the managers he has spoken with voice concerns about their turnover rates with younger employees. Companies “value that stability, and you can use that to negotiate more effectively for yourself,” Cohen says.

Another asset older workers often provide is organizational history and the ability to mentor newer employees. These have a value to the company and can help you make your case for a raise.

Be prepared if your boss says no

No matter how well you prepare, there’s always a chance your employer will deny your request. If that happens, Cohen says you should ask your boss how you can revisit the conversation in the future.

“The first thing is to breathe and slow down,” he says. “You can’t react in that moment. What you want to say to your boss is, ‘I hear what you’re saying, and I respect it. I need some time to think about this. Let’s have another conversation.’”

Cohen says to ask your employer for a plan of how the company might address the impact that inflation is having on your salary. If your employer’s proposals don’t meet your financial needs, you might need to consider your options elsewhere.

“Even though older workers might be reluctant to change jobs, if you are absolutely committed to not changing jobs, you have no power,” he says. “Power in negotiation comes from having alternatives. Whoever needs the agreement less is the one who has more power. If your boss knows that you are not going to leave under any circumstances, then your boss can be very polite, but keep saying no.

“If you get a firm no and you don’t get any indication that anything’s going to change, stay in your job but polish up your résumé and start looking at what else is out there,” Cohen says. “Even though you might have some concerns about changing jobs, you need to test the waters and get a sense for what is the market value for your services.”