There are a few surefire ways to increase your salary dramatically. So if you’re looking to make more money, read on! We’ll discuss the best ways to see your pay go up. Many of these methods don’t require any additional education or experience – they simply require that you know how to ask for a raise. So let’s get started!
Know your worth
Before you embark on any project to increase your salary: ask yourself: am I being paid what I am worth?
It seems obvious, but it is essential. It allows you to adjust your negotiation margin before discussing it with your employer. Indeed, if you give too high a figure, you will lose your credibility from the start. On the other hand, if you aim too low, you may obtain satisfaction. However, your next opportunity for discussion will be far away, and you will remain underpaid for a long time.
If you are not sure whether you are well paid or not, there are a few ways to find out. One way is to compare your salary to others in your field. You can use online tools like Salary.com to get a sense of what others are making. You can also take a look at your company’s financials to see if they are doing well. If they are, you may be able to negotiate a raise. Finally, you can directly ask for a raise, which we will discuss right now.
The different types of salary increases
Ask your boss for a salary raise
That is the easiest and quickest way to get a pay rise. But it is not necessarily the best one.
If you are successful, you will be better paid. And it carries the advantage of showing that you are ambitious and care about your career. Employers like seeing proactive and willing employees take charge of their future. Furthermore, if you don’t ask for a raise, there is a good chance that you will never get one, even if you deserve it.
But of course, there are some potential cons to asking for a salary increase. For example, in some circumstances, it can backfire, and you may end up with no gain or, even worse, a decrease in salary or responsibilities. Here are a few reasons why asking for a salary increase may not be the best idea.
First, your boss could refuse because they don’t think you deserve it. That can trigger a loss of motivation and the beginning of the end of your story with your employer.
Then, your boss may not be authorized to give you a raise – only the company’s human resources department can do that. Even if your boss is allowed to give raises, they may not have the budget to do so. You could end up with an increase of 1% to 3%, or 5% if you walk on water, and still, you could consider that is not enough to reward your efforts. As a result, you and your employer may be mutually frustrated by the other party’s lack of recognition of effort. Lastly, you may already be well paid in your current position, and asking for a pay rise may not be appropriate in your situation.
Ask for a promotion
If you aim to ask for a promotion, the chances are that you are already seen as a high-performing employee. If that is the case, go for it. As a higher-ranked employee, you may be eligible for other benefits, such as bonuses, company vehicles, or stock options. Additionally, you will be able to learn new skills and grow your network, which can only benefit your career. And of course, if you successfully get a promotion, your salary is likely to increase as well.
But again, keep in mind that the company’s budget is limited. So, although the salary increase you would get in that case is probably higher than if you just ask for a pay raise, it may not be enough for you. According to the US Bureau of Labor Statistics, the average raise for a promotion is only 3% in 2020.
Then, this method has other risks. Asking for promotion makes you look entitled or presumptuous. It is also a message telling that at least one boss is not doing their job correctly, and you can make it better. Unless, of course, this boss is also asking for a job change.
Changing an organization is the most effective way to dramatically increase your salary increase. Why? Your current base pay may restrict your annual increases. Indeed, companies have a limited percentage range within which they can increase your salary. By changing your company, you are no longer bound by those restrictions. As a general rule, depending upon your industry and location, you can negotiate a salary increase of at least 10% when you change employers. Sometimes, it can be as high as 20% or more.
But beware: although very effective, this method must be used sparingly. Otherwise, you risk not being taken seriously by your potential future employers, or worse, being considered a job hopper. In addition, changing jobs too often prevents you from building solid relationships with your colleagues and superiors, which can be detrimental to your career. Finally, there are limits to this phenomenon. You can’t expect to increase your salary whenever you change jobs because you might be overpaid for your job at some point.
Other ways to increase your salary
Yes, that is possible to remain in your current job and earn more money. But of course, this requires you to spend more time working, typically on side hustle projects. The advantage of these projects Is that you can commit just the time you want, learn many skills, and make money if you dedicate enough. You can read this article to learn more about it and get some ideas about side businesses.
As you can see, getting a pay raise is not easy. Even if you think you deserve it, your employer may not agree or may have too little leeway to accommodate you. In any case, knowing how your salary compares to the market average is essential: it will allow you to better decide on your options for adjusting your pay upwards, either by staying with your company, changing jobs, or taking on a side hustle.
Do you have any other suggestions for how to increase your salary? Let us know in the comments below! And be sure to check out our other blog posts for more great tips and advice. Thanks for reading!