How to Get a Pay Bump (Without Leaving Your Job)
With inflation at an all-time high and an incredibly tight labor market, many employees are looking to leverage the current circumstances and make serious financial headway in 2022. According to a recent Forbes piece, most people receive a salary increase of anywhere between 10% to 20% when they change jobs.
The financial win for job-hopping every few years continues to be well documented. But what if you really like your job? And don’t want to leave?
This year can still be a financial win for you. It’s time to ask for a raise.
The Wall Street Journal reports that companies are setting aside an average of 3.9% of total payroll for wage increases in 2022, the largest increase since 2008. Here’s how you can make sure you get the raise that you deserve:
Articulate the ripple effect of your to-dos. What happens when you do your job well? To your peers, customers, and the company? What would happen if you didn’t do your job well? These questions can help you articulate the value you’re bringing to your organization. For example, if you pull together market research reports, you’re doing more than sourcing stats, you’re enabling your organization to make data-driven decisions about how they invest.
Ask yourself- What is your organization’s purpose? And how are you propelling that purpose in your role? Connecting your daily outputs to the overarching goals of the organization build a strong foundation for your request.
Look to the future, not just the past. In most cases, your pay bump isn’t going to be retroactive. A compelling case shows a history of delivering results, but it also highlights how valuable your knowledge and skills will be in the future. Think about the big goals your team or company has next year and how you’re prepared to deliver results.
Know the market value. Know your worth outside of your own company. Interviewing somewhere else doesn’t mean you’re beholden to accept the offer. Be careful here, if this isn’t common practice in your organization (as it often is in tech) presenting a full-blown offer can erode the trust you’ve built with your manager. Instead, try citing industry-wide data and other public information to build your case.
Don’t make inflation the centerpiece of your argument. Your organization should pay you more because you are adding more value to the business, not just because gas is more expensive. Yes, inflation is real, but it shouldn’t be the driving force behind your salary increase. The Wall Street Journal article I mentioned above also emphasizes this point, noting that when you base your request on your value (vs inflation) “You are less likely to hear your employer counter that they, too, are contending with rising inflation-related costs for materials and other business inputs.”
The crux is this: Make the ask! I’ll share a piece of advice from one of my favorite finance experts, Sallie Krawcheck (founder of Ellevest and overall badass), shared on CNBC. She says:
“Don’t think, ‘Oh, if I do a good job, Santa will bring me a present, and it will be a raise.’” Rather, “find those metrics that are relevant to your job that will help the company be better.”