Getting a new job can be a scary, crucial, and challenging choice, especially if you decide to change careers. It is a huge personal, professional, and financial choice. The most popular and sometimes only way to boost your pay or improve your benefits is to get a new job. Let’s discuss.
WHAT IS YOUR COMPANY’S MERIT INCREASE STRUCTURE?
Consider your current employer. Do you get annual raises? If yes, how much? If no, why not? Are your raises based on a set criteria or are they subjective? Are there clear guidelines for increasing your pay or getting a promotion within? Before deciding to get a new job, examine your current situation and figure out why it does not work for you.
An Example
My current employer has a clear guideline on our expectations and targets for the year. Your performance and execution in meeting your targets are rated from 0 to 5, the latter being the better rating. If you do nothing to meet your targets, you will get a score of 0. If you go above and beyond your targets in a professional and ethical way, you can get a 5. When you average 3, you get a 3% raise. The maximum annual merit increase is 5% and the maximum increase for a promotion is 8%. Figure out how your company’s merit increase structure works to see if they can meet your earning potential goals.
ASKING FOR AN INCREASE
When asking for an increase, keep in mind that companies standardize their pay structures for like-positions. Once they standardize something, they don’t like to change it. Never use inflation, rising costs, or wanting to buy a new car as a reason for an increase. They don’t care. You can almost always adjust your lifestyle and live below your means. When asking for an increase, you should only use your work performance to back up your claims for deserving better pay.
DECIDING TO MOVE ON
Let’s say your employer did not give you the raise you were expecting, or worse, no raise at all. It may be time to move on and find something fullfilling. Switching jobs is hard. You made friends and developed relationships. You became very knowledgable in your industry. Now you have to reset to learn something new and meet new people. Salaries and raises can vary widely. Factors that effect pay and benefits include industry, size of company, field of work, education level, location, market conditions, years of experience, and even personality.
As someone who has only worked for large national and global companies, I found that smaller companies are unable to match the pay or benefits you ask for. I personally aim for large companies that sell products that are necessities in our society. For example, cell phone companies. Everyone has them. Everyone wants them. MintMobile is one of the newest player with their T-Mobile 5G network coverage and $15 per month plan. Sign up here and get your first 3 months free.
PREPARE WITH DATA
When trying to figure out what salary you should request, always look at data on websites like Glassdoor.com, Salary.com, and Payscale.com. Be sure to choose the same industry and job title as the job you are applying for. By sifting through thousands if not millions of records, you can figure out if it is normal to ask for $5,000 more or $20,000 more than your current annual pay.
GETTING THE MAXIMUM PAY OFFER
In any interview, be sure to sell your strengths and accomplishments. No matter what job you are applying for, companies want leaders. Talk about anything you have led, where you are the head of the household, the leader of a club, or a manager in a previous role. Practice situational questions online. Check out Glassdoor.com for common interview questions asked by certain companies or industries. Many companies these days are transparent about the pay range. If you know their pay range and you believe you exceed their requirements, request a number near the top. Finally, make sure you are searchable and presentable online. These days, a hiring manager may look you up on LinkedIn, Facebook, TikTok, or even OnlyFans. Clean up your digital fingerprints before you start applying for work.
WHAT THE DATA TELLS US
According to cnbc.com, the June 2020 to June 2021 12-month moving average wage growth for those who switched their jobs was 3.8%. This is slightly higher than the 3.1% increase for those who stayed with their employers. In September of 2021, that gap widened to 4.3% and 3.2%, respectively. Remember that this 12 month rolling average includes those who had pay decreases. Not everyone who switches jobs makes more money. Many people lost their jobs in 2020 and had to resort to getting low income jobs to stay afloat. Some people decide to change careers entirely to lessen their stress and responsibilities. To answer the question that this post asks – If you are switching jobs for the sole purpose of higher pay, you can expect an average increase of 10%. Roles in high demand can go as high as 20%.
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