#CostOfLiving #Inflation #SalaryNegotiations #Australia
Hey everyone! 💼💰
Have you ever wondered what the cost of living inflation was over the last financial year in Australia, and how that might impact your salary negotiations? 🤔 It’s important to consider these factors when discussing your compensation with your employer.
I’ve been trying to figure out the best method to get an accurate picture of cost of living inflation over the past year, but I’m having trouble navigating all the economic jargon. 📈 Can anyone share some insights or tips on how to calculate this effectively?
Here’s what I think might be a possible solution:
– Check the quarterly CPI figures for the last year and calculate the average inflation rate
– Use this inflation rate to adjust your current salary before starting your negotiations
Remember, it’s crucial to take changes in purchasing power into account when discussing your value with your employer. Let’s help each other out and ensure we’re all informed and prepared for those important salary talks! 💪🏼 #KnowledgeIsPower
You can calculate inflation however you want, they’ll pay out based on how much value you add.
Tell them what you are worth, not how much more you need to be paid.
If you are someone they need and can’t get it with a soft approach, one way to go a bit harder without directly threatening to leave is something like:
“I like working here and want to stay, but I do need to earn more and know I could get $XYZ if I went to an equivalent job somewhere elsewhere, can the company match that?”
I once approached my boss for a pay increase and tried my luck at “turning the tables.”
Rather than telling him how much I wanted I told him to come back with an offer for what I am worth.
Back fired nicely when he returned to say he thinks what I was paid was fair market value.
Was a good kick in the arse to know my worth wasn’t seen there and was gone with in 3 months to an easier and higher paid position (same role and industry).
This has to be the worst way to negotiate an increase. Basically you are asking for a hand out because things are more expensive now. Why is that your employer’s problem? Does it say somewhere on your contract that your employer is responsible to maintain your standard of living?
Rather you should negotiate on the basis of the company’s performance + your contribution to it. You’ll get a better outcome.
3.6% which is the CPI percentage change from Mar 2023 to March 2024.
CPI for the last year was 3.6%. It’s on the RBA website and also in several news articles.
If you provide the same amount of value to your employer as last year then your wage should increase by 3.6%
Switch companies. Bigger pay increase almost every time.
From a worker’s viewpoint, inflation is crucial as it determines if their salary has effectively increased or decreased. For businesses, inflation is generally insignificant unless it rises significantly and prompts the majority of employees to demand higher wages. Ultimately, businesses hold more decision-making power, so inflation usually has a minor impact, except in cases of high inflation.
I wouldn’t even factor CPI into any negotiations and I certainly wouldn’t it bring it up verbally or they will laugh at you.
Instead you need to determine what you are worth, what the market rate is and what you want, on top of that, why you deserve it.
CPI and inflation are not a good indicator of cost of a good life but only an indication of value of money.
If beef for example goes up by 10 times and people start eating bugs and the prices for bugs doesn’t increase then inflation is unaffected and government sings hooray as beef becomes a luxury meal out of CPI basket.
Cost of housing also not included. This is why you hear people complaining that their costs have gone up far above inflation
I usually look at AWOTE rather than core inflation when considering wage negotiations. That tracks the average increase in wages and available on the ABS website.
I had someone tell me their boss told them no pay rises because it causes inflation 🤣.