Data shows that inflation is definitively back on the scene, as many countries reported price pressures especially in central and eastern European countries.
Inflation already featured in wage setting discussions and decisions in 2021, but its influence on future wage setting will increase worldwide. In the EU, the forecasted growth of the nominal wages and salaries in 2022 amounts to 3,3%. In the US, in 2022 wages are expected to grow by an average of 3.9%. Against this background, employees have quite some power to negotiate better salaries.
As seen in The Human Capital Fund, negotiating your salary with an employer can be complicated and nerve-wracking. Whether you are analyzing a beginning salary or asking for a raise doesn’t matter. It’s never too simple.
Salary negotiation is a dialogue aimed at reaching an agreement; it is crucial to know what you want and what you are willing to give up before you begin.
Nicholas T. Mushayi, a consultant at the Industrial Psychology Consultants, a Human Resources and Management Consultants Company, suggests the following steps when negotiating your salary: