What do you do if salary negotiations in Economics become challenging during tough economic times?

To negotiate salary during economic times, research market conditions, highlight your value, focus on non-salary benefits, be flexible, demonstrate commitment, seek win-win solutions, maintain professionalism, consider long-term implications, and seek support if needed. By researching market conditions, articulating your skills, focusing on non-salary benefits, being open to compromises, demonstrating commitment, seeking collaborative solutions, maintaining a professional demeanor, considering long-term implications, and seeking support, you can increase your chances of a favorable outcome.

I totally agree. Salaries should be pegged to commensurate with the value you bring. The marginal outcome of hiring an economist should outweigh the marginal cost. That is what efficiency is all about.

Staying competitive as an economist will definitely be affected by market forces. Having a cross-departmental experience could be a good bargaining chip. Overall, economic situations affect general wages and prices but it is still possible to eke out a good salary if one has good skills diversification. That's the key to staying competitive no matter how tight the markets are.

I made a poll recently on benefits and work from home won the first position with almost 50% of the votes, in front of other financial benefits for example. Money are no longer the only trigger, people are interested in the mission of the company, the level of freedom they get, the social climate.

I don't quite agree with this. In times of economic depression, it's good to think short term and make satisficing decisions. An economist should command a better price in times of economic downturn because that is when they are most needed to help navigate the headwinds. We should place the horse before the cart. Economists should be incentivized more during periods of bust and assumedly less so during booms when all is well.

Conduct thorough research on industry standards and economic indicators to understand the prevailing market conditions. Approach negotiations with flexibility and a willingness to explore alternative forms of compensation, such as additional benefits, professional development opportunities, or flexible work arrangements, that may hold value beyond monetary compensation. Emphasize your commitment to the long-term success of the organization and your willingness to contribute to its growth and resilience during challenging times. By framing the negotiation in terms of long-term goals, you can build trust and goodwill with your employer while securing a compensation package that aligns with your financial needs and career aspirations.

Globalization is a dicey one and we must all tread with caution here. Not all factors of production are mobile. Capital is, but land and labour are not, except for highly skilled labour, which is a major determinant factor for inequality. We must ride the wave of globalization in a way it upskills our citizenry for exportable labour as capital brings with it embedded technology for labour upskilling. Local content development is most crucial in this regard if we must achieve inequality and command good wages.