Having a low-income sucks. In your early years of work, you can put your head down and work your tail off but it often feels like wasted effort. When you start working, your pay is low and without taking steps, it may never move far from your starting place. The big problem here is that employers don’t want you talking about pay, often hiding behind vague rules and arbitrary timelines.
Income and spending are the 2 areas of your finances you can have most effect on. Income is not solely dependent on you which makes things more complicated, but it is the area that can have most impact on your personal finances.
When looking to get an increase in your income there is a few things you need to do.
Research the Field
Know what the standard salary is for what you do. Find out what people around you are being paid. Compare your work to theirs. If you are doing comparable or better work, you have the basis for asking for an increase. If you’re not, you need to improve yourself first.
Know the state of your employer. If your company is on the rocks, it can be futile pushing for a pay rise. Asking for a raise at an inappropriate time like when the company is in financial difficulty can also come across poorly. Know where your employer stands. You might have to look external from the start.
Know your industry. If 80% of your industry is minimum wage, unless you can break into the non-minimum wage part, it might be time to move on. There are also some industries with set periods for increases, such as accountancy programmes and apprenticeships where the training wages start low but ramp up as you become more qualified. If you don’t know the game you’re playing, you’ll never win.
If you are in a performance based area this part is easy as sales or quality is your measure. If not, find another way to get high performing and get it noticed.
Get to Work
Know the measures of a high performing employee and start taking on hard jobs and management tasks. Volunteer for tasks that are very important and nobody likes doing.
Volunteer for tough new projects and wear a smile while you do it. Unless your management is terrible, it will be noticed.
Meet With Your Manager
State your intention and expectations. Your managers are not mind readers. If you want a raise, let them know. Ask for the necessary information like what is the timeline for a raise, what is expected of you, and if possible, get a commitment that if you achieve the set expectations you will get the increase agreed.
You may need to improve your output or quality of work.
You might have hit a salary ceiling at your level and need a promotion before you can be given an increase. Without having this discussion with your manager and clearly stating what you want, and that you are willing to do what needs to be done to get it, you add unnecessary delays.
Some people will look for a raise because their rent increased or they feel like they deserve it. The disconnect is that your company doesn’t care about your rent or feelings. You need to focus on the value you provide and get set expectations and goals to achieve.
Be Mentally Prepared to Walk Away
I see so many people resentful with how they are treated about something in work, yet they stay. It’s like they’re stuck in the situation. Times have changed, you don’t have one job for life anymore, if it sucks, move.
If you met the targets you were given and the deadline comes and your work does not give you the increase they committed to, leave. Don’t get hung up on it. It’s probably not personal. There may be outside factors that mean they can’t pay more or are unwilling to. The reason doesn’t really matter, the result does. If you did your part and they follow up with their commitment, take your experience and leave.
You might be at the wrong time of the salary/promotion cycle. The company financials might be in a different state than before. If your timing doesn’t sync up, you might have to wait it out until this improves, or leave.
Going to a new company can give you a fresh start. Starting a new job is the best time to adjust your income. Most internal increases will be small and typically be referenced to your base salary. This is not ideal for you. External moves can give you the opportunity to get a salary not referenced to your current level.
Plan an Exit
What often happens when people are mentally prepared to leave is they are not physically ready. You want to have other job offers at the time, or just after your pay rise should have happened. If they don’t deliver, you should have done some interviews and have a job lined up already, preferably on the pay rise (or more) you were looking for anyway.
This increases your negotiating power. If you hit your targets and get your pay increase, great. However, if your employer doesn’t deliver or is on a different timeline, you have the option to move. A mistake often made is the threat to leave without having the ability to go. This is stupid and damaging. Don’t bring it up unless you’re ready to leave.
Getting an increase in your income if difficult. It takes hard work, a plan of attack and a bit of luck. As you can’t change the luck part you need to focus on effort and having a plan to succeed. As you progress in your career it will probably be harder to get a raise over time as you will hopefully be on more money and possibly at a higher level. In the early years of work, your income is lower and it can be possible to double your income in 2 years.
If you found this helpful, you might like having our “2 years to 2X Your Income” talk. The goal of this talk is to give you the tools to target specific ways to double your income in 2 years. Although doubling may not be possible for everyone, it is achievable for many, and those who strive and don’t quite reach it should still see a marked improvement.
Why employers should want this; Get more motivated employees looking to add more value to you and your bottom line. After they take some of this onboard, you’ll want to pay them more.
Why employees should want this: Get a solid plan to increase your income within the next 2 years.
Financial literacy leads to reduced stress, better decision making and the ability to plan to meet your personal goals.
Money Boot Camp Ltd.
Call: 00353 (0)871225761