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First of all, the cost of living has gone up WAY more than 3%, so that raise isn't even a raise at all. You're still losing money. That would be one point. And to drive it home, I'd put something together to quantify the impact I have on the company. Something to prove you're worth investing in. And then I make a compelling argument. I'm sorry, but 3% is unacceptable in this day and age.
I think you're on the right path for sure - it's just about explaining market conditions and connecting it back to the impact you've made at the org
I usually cite cost of living + my achievements - it's like a double whammy type situation and that helps. Also go for higher like 5% so that they drop down to what you actually want
Market assessment helps, pull what other nurses comparable to you are making in the same region/facility type