How to get a pay rise – and how to avoid giving one (without losing talent)

 As inflation skyrockets, companies are being besieged with pay rise demands. What’s the best way to secure one, and how can managers resist pressure to bump up salaries?  

As the cost of living soars, many people will be thinking about asking for a pay rise. In the UK, inflation is rising so quickly that workers could need an annual salary hike of 18.6% by January 2023 just to command the same purchasing power as a year before. 

For employees, the good news is that it’s a jobseekers’ market right now in many, but not all, sectors. The historical tightness in labor markets in developed economies has given workers stronger bargaining power to negotiate higher wages, so long as their demands are framed strategically. 

For organizations, of which many are already facing pressure on their own cost bases, this presents several quandaries – including how to attract and retain talent while simultaneously tightening the purse strings. Companies will need to think creatively and find other ways, besides upping pay, to motivate employees and lower attrition rates.