PHOENIX — Average hourly earnings are down from February 2022 to February 2023, according to the most recent data from the Bureau of Labor Statistics.
While the cost of goods is rising, wages are not. And with recent layoffs announced at Meta, asking for a raise can be an intimidating task.
So, what are the best methods to negotiate a pay raise?
According to Andres Lares, Managing Partner at Shapiro Negotiations Institute, begin by approaching management or human resources with empathy.
“An empathetic approach really is about understanding, putting yourselves in the shoes of the other party,” Lares said.
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Lares suggests addressing the sensitive nature of asking for more money, thus signaling the conversation will be more collaborative than demanding.
“You should know and potentially even bring it up,” Lares said. “[Say] ‘Look, I understand this is sensitive, given that there's been a pretty significant number of layoffs. But at the same time, I know that business has to continue. And so, because of X, Y and Z reason, here's why I believe, you know, I should be eligible for a raise.’”
Equally important to empathy is going into any pay raise negotiation prepared, according to Lares.
“Preparation is the only aspect of a negotiation over which you have control,” Lares said.
To walk into a negotiation prepared, Lares says to prepare a compelling message to communicate wage wants and needs with confidence.
“The first and easiest way is to script the key points,” Lares said. “You want to say what are the key objections you expect to get, and how would you respond to those?”
Communicating value to a company is another key factor in negotiating higher pay, Lares noted. However, rather than focusing on previous accomplishments, point to potential performance value in the future.
“Why are you more valuable now?” Lares said. “Maybe it's how efficient you are. So, you can take the role of two people. Maybe it's the fact that you can put processes in place or technology in place that can help make up for some of the layoffs that have occurred and allow the company to continue to work.”
If higher pay is simply not possible, Lares recommends looking for other forms of compensation, such as extra paid time off, 401k matching, or compensation for commuting.
“You start to collaborate to reach a solution that's best for both parties, rather than that zero-sum game, which you really want to avoid,” Lares said.
