Overcoming Economic Obstacles: The Smart Approach to Pay Rise Rejections Amid UK Economic Volatility
Imagine your desired pay rise within reach, only to have it slipped away because of wider economic forces. It's a tough pill to swallow, but the current economic volatility in the UK, a complex cocktail of the continued fallout from Brexit, high inflation driven by Putin's invasion of Ukraine and escalating interest rates, often makes this a harsh reality. The question then arises, how do you navigate such a challenging landscape? This article aims to offer tangible solutions to that very question, helping you turn rejection into an opportunity for growth and advancement. The good news is you are not alone facing this problem and together we can share lessons for a more positive future.
Understanding the Economic Landscape
The UK economy has been on a rollercoaster ride recently. Liz Truss's infamous 49-day stint premiership had repercussions that led the Bank of England to take corrective economic actions, adding another layer of complexity to the already struggling economy. Economists concur that Brexit has held back UK growth and investment, impacting businesses' ability to offer generous pay rises across the board.
To add fuel to the fire, inflation is soaring, with food inflation at a whopping 17.4% in July 2023, in stark contrast to average wage increases of only 7.3% in May 2023. The governments cost of living support has tapered off, following the initial energy scheme help. There has never been a more important time in the 21st century to make sure your pay reflects the rising costs you are facing. With the Bank of England raising interest rates for the 13th consecutive time in June 2023, taking the main rate to 5%, mortgage and rent costs have become heftier burdens on household finances. So how do you cope with a rejected pay rise and what are your next steps may you ask?
Riding the Storm: Reacting to Pay Rise Rejection
The economic landscape might seem daunting, but your response to a pay rise rejection can shape your professional journey positively. It's crucial to respond with grace, professionalism, and understanding, given these external pressures. Even if you plan to leave your company, its usually best to have a positive relationship with your boss as after all the world is only becoming smaller.
Beyond the "No": Understanding the Denial
It's essential to seek clarity on why your pay rise was rejected. While macroeconomic factors may play a role, there could also be company-specific or performance-related reasons. By unravelling these, you can plot the course for your next steps. If you have any colleagues you are close too take a temperature check with them to see if it is a company wide issue.
Brewing Insights: Seeking Feedback
Amid the economic storm, continuous professional development is crucial. Invite your manager for a cuppa and use this opportunity to seek feedback. Ask for specifics; what didn't go as well as they'd like? How can you prove your worth to them? What do you need to achieve over the next six months to guarantee a rise? This knowledge will serve as your compass, guiding you towards areas that require growth and improvement.
Strategising for the Future: Preparing for Success
With this feedback and understanding, you can chart a course towards future success. This may mean enhancing your skills, addressing performance gaps, or setting a future date to revisit the pay discussion.
A New Horizon?: Considering a Career Move
Given the current economic scenario and the rejection of your pay rise, it might be worth considering if a new role or company could offer better financial prospects. A recruitment consultant can provide valuable insights into market trends and potential opportunities. Sites like Glassdoor and FishBowl are invaluable resources that allow you to understand your specific pay situation in the context of your industry - go sign up if you haven't they are both free to use.
Turning Rejection Into Reflection: A Five-Point Action Plan
Embrace the Feedback: Leverage the feedback from your manager to identify areas for improvement and professional growth. Use resources such as online learning platforms to upskill and increase your value to the company. There are reams of content for free on the internet to help you grow, make the most of it.
Be Economically Aware: Stay informed about the wider economic climate. BBC news provides regular updates and commentary suitable for all, in addition to ProsperousPounds!
Improve Your Negotiation Skills: 'Never Split the Difference: Negotiating As If Your Life Depended On It" by Chris Voss and Tahl Raz, is a great read. Written by a former FBI hostage negotiator it can put you on a path to enhancing your ability to negotiate effectively.
Consider Professional Advice: Seek the services of career coaches or recruitment consultants to get a sense of the market and evaluate your specific options. Maybe dust off that CV and ensure it is up to date with your latest achievements, training and qualifications.
Engage with ProsperousPounds: Utilise the resources, advice, and community on ProsperousPounds to navigate your financial journey effectively.
Concluding Thoughts
The UK's economic volatility may cast a shadow over pay rise prospects, but remember, you have the tools to navigate this landscape. Your response to rejection, your understanding of the reasons behind it, the feedback you seek, and the strategic plan you develop for the future can all turn this setback into a stepping stone towards success.
Your resilience and strategic thinking will be key as you journey through this challenging economic climate, whether that means persisting with your current role or exploring new opportunities. As Churchill aptly put it, "Success is not final, failure is not fatal: It is the courage to continue that counts." So, approach this period of economic uncertainty with courage, and let your resilience guide you towards your financial goals.
Disclaimer: The information provided in this article and on the ProsperousPounds platforms is for general informational purposes only. It should not be considered as financial advice. You should consult with a professional financial advisor, accountant or legal professional where appropriate. Neither ProsperousPounds nor the author shall be liable for any loss or damage caused or alleged to be caused directly or indirectly by the information referenced in this article or on the ProsperousPounds platforms.
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