- A salary boost could work wonders for your finances.
- Researching salaries and highlighting your skills are some tactics to employ when negotiating for better pay.
Want a pay boost? Here's how to get it.
Many employers give out raises at the start of the year. But what if you didn't see your pay go up to kick off 2022? Or what if your pay did get a bump, but you're still not happy with what your paycheck amounts to?
There are plenty of ways a higher salary could help your financial picture. Getting paid more could make it so you're able to put more money into your savings account, pay off expensive debt, or work toward other goals, like buying a new car or purchasing a home. If you're eager to see your paycheck rise, here's how to approach your raise negotiations.
1. Know what you're actually worth
It's easier to make the case for higher pay when you can prove that statistically speaking, your salary falls short. Spend a little time researching salary data for not just your industry, but your specific position. You can use sites like Glassdoor and Salary.com to dig up that information.
When doing your research, aim to look at salary details for your specific city or metro area. If you live in a smaller city, you may not be able to command the same salary as someone living in an expensive part of the country like New York or San Francisco.
Say your current salary is $60,000 a year, but you do your research and find the average person with your position in your area makes closer to $70,000. If you put that data in front of your boss, you'll have an easier time swaying them to boost your pay -- especially in today's market.
It's not a secret the labor market is currently loaded with jobs. If you're able to prove your company isn't keeping up with market rates, your employer may be motivated to raise your pay to avoid losing you to a competitor.
2. Bring up inflation
Inflation has been rampant for months. Recently, it reached a 39-year high, and it's making everyday expenses cost a lot more money.
When negotiating a higher salary, you shouldn't hesitate to bring up the fact that inflation is driving up the general cost of living. This especially holds true if your company has a policy of giving out cost-of-living raises and it fell short this year.
Imagine your pay went up by 3% in January. As of December, inflation was up 7%, which means that a 3% raise isn't going to cut it. That's something you should absolutely point out.
3. Highlight the specific skills you bring to the table
It may be the case you're one of many strong performers at your company. But if you're the only person on your accounting team who knows a specific software, or you're the lone IT person with in-depth knowledge of your newly implemented database, then those are skills you shouldn't hesitate to mention when negotiating salary. If your employer is reminded of the specific value you bring to the company, it could make the case to raise your pay to avoid having you jump ship.
In today's labor market, there's no reason not to go after the salary you think you deserve. Use these tips to guide your discussions. With any luck, they'll result in a pay boost that makes you happy and allows you to more comfortably tackle your expenses and goals.
Alert: highest cash back card we've seen now has 0% intro APR until nearly 2025
If you're using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2023 The Ascent. All rights reserved.