I just used ChatGPT to find out the dollar has lost 25% of its value since 2020. Has anyone here brought up inflation in compensation negotiations (either for a raise or new job offer) to adjust their pay to account for inflation specifically?

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Wages aren’t adjusted for cost of living; they are adjusted based on cost of labor aka how much it would cost to replace you. That is how you should frame any discussion on salary.

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Insightful and helpful response, thank you!

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Wow, 25% in five years seems crazy. I'm trying not to be negative about sliding into a recession, but all the signs are there. I got a cost-of-living raise this year, but it was only 3%. It's like we're all getting annual pay decreases, isn't it?

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Having $1 in this current economy is equivalent to about 30 cents

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There's no question that the worldwide inflation from the pandemic decreased our purchasing power. But that's not really an argument to make to employers. From their perspective, it's not their problem. Bringing up inflation in a salary negotiation will mark you as unserious and will probably undermine your case. Better to talk about the value you bring to the organization.

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Good point, thank you!

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