Are you thinking about the rising cost of living, inflation, and rent increases? The U.S. is experiencing historic inflation and price jumps across all lifestyle categories. According to NPR, food prices are increasing by around 4% to 5%, and gas prices are up 51% from last year.
With rising costs across the board, you might be looking at your current paycheck and wondering, “How do I get a salary raise?” You’re not alone: 62% of Americans say they’re worried their paychecks wouldn’t keep up with price increases.
The standard salary raise is 3%, which doesn’t even keep up with the rate of inflation anymore. Inflation is currently at historic highs of 6% to 8%, meaning your current salary isn’t going as far as it once did. In recent years, regular pay raises have failed to keep pace with the rising cost of living, which continues to be true in 2022.
If you want more bang for your buck and the talents you bring to the workplace, here are some things to consider when asking for a salary raise.
The best way to increase your salary is to switch jobs. Roughly 49% of Americans who changed jobs experienced a pay raise, with 29% saying their salary increased by more than 30%.
Compared to the 3% standard annual raise, the average salary jump when changing jobs is 10% to 15% on the low end. Many workers make several job changes within a few years that contribute to substantial overall wage growth. According to ADP, the most significant salary increase at a company happens when an employee reaches the two-year mark. After that, you’re better off switching companies if you’re looking for more higher increases.
If your current role offers no opportunity for promotions or growth, you’re dissatisfied with perks and benefits, or it’s simply not a good culture fit, we’re here for you. At Advantis Global, we’ll help you find your dream job in either a permanent or contract position that’ll help you reach your financial goals. We source talent for the top tech companies and will work closely with you to find a job that increases your salary.
If you’re staying in your current role but still want an off-cycle raise, bring specific examples, projects, and data to your salary raise negotiation to help explain and justify the decision.
Put a number on your value and why you should be paid more. You might think putting a hard number or data point is easier for certain positions like sales or accounting. An account executive can easily point to new deals, client retention, or inbound leads to argue for more money, while a financial analyst can illustrate money saved. However, getting creative with your data can help roles like marketing paint a picture of why their salary should be increased.
For example, did a specific lead magnet contribute to increased sales? Did the website refresh create higher conversion rates on the demo request form, putting more qualified leads into the sales pipeline? How many social media visitors end up eventually becoming customers?
In salary raise negotiation, provide your employer with examples of projects you participated in that illustrate the value you’ve brought to the company. This is evidence that you deserve to be paid more.
Are you grossly underpaid for your position? You might not know until you do some digging on standard rates for your job title. Location, company size, and seniority all play a role, but websites like Glassdoor can provide insights into standard compensation ranges.
If you work in tech, knowing what Adobe, Salesforce, IBM, or other industry giants are paying their employees (specifically those in similar job titles to you) gives you a better understanding of your earnings range.
Presenting this range to your boss — instead of a firm number — can help with any sticker shock they might face when you ask for a raise. If your boss can’t meet a salary figure in this range, you can use this market research when you’re ready to move on and look for a new job.
While it’s an excellent idea to bring specific projects and data points to a salary raise negotiation, it’s also important to know your overall worth — your character, reputation, personality, and how you interact with teammates.
Employers want to keep high-performing, well-liked employees. Soft skills like teamwork, flexibility, and a positive attitude are often underestimated but are extremely important to an overall company environment. If your boss knows you’re one of the go-to people for any project, they won’t want to lose you over money.
Hiring a new employee costs significantly more than keeping a current one. Employers have to pay for recruiting and training and then allow for ramp-up time as the new employee gets adjusted. Then, integrating the new team member socially into the group takes time, and Investopedia claims it can take up to six months for an employer to break even on its new hire investment.
If you want a significant salary raise, it’s time to start looking for a new role. To combat inflation and the rising cost of living, you need to find a new job that checks all your boxes of amazing benefits, perks, a strong company culture, and, most importantly, a higher salary.