(DailyAnswer.org) – When it comes to paying for general living expenses, or cost of living, the numbers will vary significantly across different regions. Expenses that generally fall under the cost of living are housing, groceries, healthcare, taxes, and other basic expenses. Cost of living is tied to local wages, so if a region’s basic expenses are higher, the salary levels must reflect this in order for residents to actually be able to afford living there.
Cost of Living Adjustment
If an individual finds they are struggling to cover basic expenses, it may be time for a cost of living adjustment (COLA) to their salary. Some companies account for cost of living increases, and thus incorporate a cost of living adjustment into their benefits plan or annual raises. However, not all companies offer this, and thus, employees may need to specifically request a cost of living raise. The raise can offset the gradual increases in the cost of living that results from inflation or living in a specific region. A cost of living adjustment helps keep your expenses and purchasing power relatively the same. If you notice that you can no longer afford the same goods and services on your salary, understanding the cost of living index and how it’s changed for your region can help you navigate the request.
Do Your Homework
Before you even request a meeting to discuss a cost of living raise, do the necessary research and be prepared with facts and your specific requests. You want to provide specific numbers that show the cost of living increases, national salary averages and other statistics that support your request for a raise. It would also be helpful if you know the average salary in your local labor force that takes your experience, education, and important certifications into account. This will help you determine the amount you would like to request. A fair request with specific details will be beneficial for making your case.
Choose Your Timing Wisely
Knowing when to request a cost of living adjustment is half the battle. If your company is currently in a hiring freeze, has recently laid off employees, or is showing other signs of cutting expenses, it may not be the best time to request a meeting. Otherwise, consider choosing the best time to schedule a meeting. Even if you already have regular check-ins with your boss, ask them for a specific meeting to discuss a COLA. You want to show respect for their time. Some other considerations are trying to schedule your meeting well ahead of your annual review. Cost of living raises do not have to be tied to merit and performance, but if you’ve had a good quarter or performed well recently and can further demonstrate your value to the company, it could be a good time to schedule a review.
Be Confident
Go into the meeting with confidence. You are a valuable employee and should be prepared to discuss how your knowledge, experience, and skills are a valuable asset to the company. You are negotiating for a cost of living adjustment, but you want your employer to know you’ve done your research and that you are worth the cost of living raise you are requesting. A confident request is more likely to be met with the response you are seeking than a meek request.
Follow Up
After your meeting, ensure you follow up with your supervisor with a thank you note or email. Presenting your request in writing as a summary of the discussion is a gentle reminder of the specific details that were discussed, and gives you a paper trail of the conversation. Express your expectation that your employer provide a written agreement or offer, but as always, show politeness and express gratitude for their time.
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