FormerStartupJobHopper

AE

Valued Contributor

How to ask about cost of living increase?

So I've been at my company for going on two years but still don't know the etiquette or proceedure for this topic. As you all know, lots of comanies will often do a somewhat meager across the board payraise for all employees due to inflation. My company did not do this last year to my knowledge, but I also got promoted to AE and got a significant raise so I didn't care or notice.

The company only gives out merit raises in sales to those who hit 100%. I don't think this is unfair, but there is a solid chance I end at around 90-95% for the year.

In my opinion, if you're doing well enough to remain employed, which I am (I'm consistenly top half of the leaderboard and am the newest rep on my team), you shouldn't have to take a 7% paycut (the annualized inflation rate right now) just because you didn't happen to earn a merit raise.

I have literally no idea how to bring this up and to who. I know that for merit raises, my boss gets X budget given to him in January to spread around to his discretion for those who have hit 100%. I am not demanding any of that budget. Do I just ask my boss politely about this and hope he points me to someone in sales comp/HR? Or am I getting ahead of myself if there's a chance I don't hit 100%?

EDIT: You guys bring up interesting points. I guess I look at it differently. There are two different types of pay increases in my mind: raises (which you get for performance and promotions), and cost of living adjustments (which you get to make sure your purchasing power doesn't decrease).

I'm not looking for a raise right now. I'm looking to not get my pay cut by 7% by forces that are out of my control. So I don't think I agree on the merits of what you all are saying, but I can see how it could be a losing argument.

Those of you who have been doing this a long while, do sales people simply not get cost of living adjustments? I feel like in other roles, it is typical if not expected in the corporate world.

💰 Compensation

19

29 comments

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funcoupons

WR Officer

11

👑

It's my opinion that inflation is not a good reason to ask for a raise. It's not the company's responsibility to make sure you can continue living to the standard of living you want year after year, that is your responsibility. You can choose to rework your budget and cut unnecessary expenses out, or you can choose to make more in commission so you don't have to sacrifice anything.

If you want to ask for a raise, provide reasons as to why you deserve it. If they only give raises for those who hit 100% of quota and you're not there, you're not in the best position especially given you were only promoted last year and received a raise then. That said, it never hurts to ask, but come prepared with reasons as to why you deserve a raise even though you didn't hit 100%.

paddy

WR Officer

3

Director of Business Development

Listen I'm gonna take a shower u just sit here and have a drink

funcoupons

WR Officer

2

👑

yes papi

sketchysales

Politicker

2

Sales Manager

belting answer. couldnt have put it any better. Life is a bitch and inflation is life, you got to work to overcome it.

ilovemondays

Executive

0

Senior Account Executive

I disagree to it not being the company's responsability. We didn't negotiate paycheck numbers based on the beauty of their innate properties, we did so based on the things the numbers could buy.

I wouldnt work on any company that doesnt autocorrect for inflation.

I do however agree that this conversation is over by the time you've signed your contract and asking for a raise with inflation as its central argument is folly.

Rallier

Politicker

7

SDR Manager and Consultant

I wouldn't mention inflation as a reason that you deserve a raise. I would 100% focus on things you've done and what value you are bringing to team. The more data you can come with the better. Don't just wing it, prepare for it

CuriousFox

WR Officer

6

🦊

Look, we get it. Cost of breathing in general has increased while payroll hasn't. I would focus on your merit, what you've done, and what your plan is moving forward to justify your raise.

Beans

Big Shot

5

Enterprise Account Executive

Just gonna echo that inflation is a loser argument.

Company is suffering from it too.

LordOfWar

Tycoon

4

Blow it up

"Yo bossman, tendies is costin hella skrilla now, ya feel me? Ya boi needs some more stax else I finna grind elsewhere, no cap."

Seriously though, I've been told multiple times to just "sell more" when I asked for a raise cuz they usually don't give any fucks. The only sure-fire way I have found is to get it as a term in your employment contract. You can either ask for scheduled raises based on performance or a base that is tied to CPI, but it needs to be in writing.

If your employment contract is out of date then it might be time to revisit a new agreement under the guise that the original has run its course and you now have a new role or responsibility and it is in the best interests of the company to clearly define the roles and comp for your updated position.

Gyro25

Notorious Answer

3

Account Executive

Following since I'm a top performer and I'm leaving money on the table if I don't ask..

funcoupons

WR Officer

8

👑

If you're a top performer you should be asking for a raise based on your excellent performance, no need to bring inflation into the discussion.

braintank

Politicker

3

Enterprise Account Executive

If you lead with inflation you're bound to lose.

Gyro25

Notorious Answer

1

Account Executive

Appreciate it. I've got the numbers to back it up. Especially Q4.

Sunbunny31

Politicker

3

Sr Sales Executive 🐰

The last big corporation for which I worked gave out 3%-6% bumps almost every year, across the board. Your manager would make a case for whether you were on the low end rather than the high end for the increase. It never, ever matched the pace of inflation, and was just to make sure that employees didn't stagnate too much.

In sales, we were only given "raises" if we moved to another team where the comp was higher. For example, from ISR to MM AE, or from MM AE to Strategic.

There were a few years where spot bonuses were distributed as well, but those were rare.

Diablo

Politicker

3

Sr. AE

Bring numbers, ask for X$ and show them why you worth that much.

Themorris

1

Senior Global DevOps Sales

If you want a raise go get an offer from somewhere else. If they want you they’ll match it. You can politely explain you wanted to see what you were worth and don’t want to leave. Some of the offers I’ve heard are insane right now but the OTE is likely not real.

mtc

Good Citizen

0

Consultant / Founder

I agree with this - it's an employees market right now.

Also, if you're performing at a level that the company feels like they can't easily replace you, there's no real need to justify your ask. Asking for an increase in compensation is little bit of a poker game, but if you feel like you have leverage, just firmly and politely ask for more. You can just say "I need my base salary to be at X for next year."

Respect and good communication go a long way. I wouldn't threaten to leave, lie or make excuses for why you need that money - it doesn't really matter. They will either be willing to give you a raise or not.

Blackwargreymon

Politicker

1

MDR

It's my opinion that inflation is not a good reason to ask for a raise. It's not the company's responsibility to make sure you can continue living to the standard of living you want year after year, that is your responsibility.

FormerStartupJobHopper

Tycoon

0

AE

You guys bring up interesting points. I guess I look at it differently. There are two different types of pay increases in my mind: raises (which you get for performance and promotions), and cost of living adjustments (which you get to make sure your purchasing power doesn't decrease).

I'm not looking for a raise right now. I'm looking to not get my pay cut by 7% by forces that are out of my control. So I don't think I agree on the merits of what you all are saying, but I can see how it could be a losing argument.

Those of you who have been doing this a long while, do sales people simply not get cost of living adjustments? I feel like in other roles, it is typical if not expected in the corporate world.

funcoupons

WR Officer

5

👑

Inflation is not in your control, but how spend your money on is. So is what you do to generate extra income be it through commission or some kind of side work.

I'm in sales because I love having the power to decide my own income and do not want to rely on anyone else to take care of me financially. Other than being an entrepreneur, sales is the best way to do this. So yeah, COL would be a nice lil cherry on the cake but I have confidence that I can get where I need to be through MY own actions.

COL seems like something you give to a low salaried office drone tbh.

braintank

Politicker

2

Enterprise Account Executive

Other employees get COL increases b/c they don't have the opportunity to make commission. You can go out and make an unlimited amount of money, a small sacrifice for not getting a 3% base bump.

GigabitChaser

Valued Contributor

0

Sr Account Executive

It drives me wild that so many companies don't give annual raises to sales. I'd 100% ask for it. Do they want to give a raise or hire bob off the street for probably more then you make now? If you worth it. Ask, and I think you are here.

CT_Scott

0

Senior Director, Digital Solutions

I'm glad someone asked this. I've heard colleagues mentioning it in group chats "If you don't get a raise, you are essentially taking a pay cut!" when in reality, as Beans mentions here, it's a loser argument.

Cost of living, kids, tuition: All of those reasons often heard are usually reasons folks look to level up and take new roles, but shouldn't be an argument for your current employer to bump you up, especially if you aren't at 100%.

FormerStartupJobHopper

Tycoon

0

AE

Still disagree. So you take a paycut every time you don't hit 100%? in perpetuity? when the company is incrementally increasing prices and quotas? When majority of the team will not hit quota? Nah. All due respect, you are displaying the self defeating sales attitude I mentioned in another comment. No beef, but we fundamentally disagree.

Panda4489

Politicker

0

Head of Some Shit

Simple answer. Don't expect a cost of living adjustment if you're not in the C suite or in government. Ever

Error32

Politicker

0

ISR

Transparency and truth always.

Clashingsoulsspell

Politicker

0

ISR

I see no reason not to be upfront and tell him.

AnchorPoint

Politicker

-2

Business Coach

1. Elections have consequences.
2. Go on commission and you never have to ask anyone else for a raise. (and it is the closest you will come to getting paid your worth in any organization you do not own)

FormerStartupJobHopper

Tycoon

4

AE

Obviously practically speaking that is the best way for me to make more. But on principle, if the company is raising prices to keep up with inflation, it is not logical to not then give cost of living raises. Otherwise you are getting a pay decrease every year and they are slowly making a better and better deal on you.

I knew this would be everybody's response, cause that's the kinda people who are in this forum and it's great. But I don't agree that you should then just lie down regarding base pay and keeping up with inflation. By that logic, it's cool for them to never increase salaries. What if there was 20% inflation?

It's kind of a weird self defeating sales attitude in my opinion. I'm a badass and I'll just make it all in commission. Okay great, but if you're such a badass, you're worth a base salary and keeping up with inflation as well. It's both

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