With employers planning on larger pay hikes, this is tips on how to discount for extra
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You may be standing in line for a major raise in the next year.
The pandemic caused companies to cut their pay, but now companies plan to increase the increases to levels not seen in several years.
According to a survey by consulting firm Willis Towers Watson, employers are forecasting average annual pay increases of 3% for executives, executives, skilled workers and auxiliary workers in 2022. That’s a 2.7% increase in 2021 and the average 2.8% increase seen a few years before the pandemic.
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Workers and workers in production can expect an increase of 2.8% in 2022, compared to 2.5% this year, according to the survey, which was conducted between April and June 2021. A total of 1,220 companies from various industries took part.
“What we are seeing today is really a structural change in the labor markets,” said John Bremen, managing director of Willis Towers Watson.
After tremendous instability in recent years, labor markets have been trying to find a new balance, he said. More people are moving than usual and companies have higher salary budgets.
“This creates an opportunity that allows workers to represent themselves and help their current employer understand their worth,” said Bremen, adding that it would not surprise him if average salaries over the next year 3% would be.
In the meantime, many employees choose to quit their job instead of having this conversation.
Before you say, “I’m quitting,” you should go to your boss and ask for a raise. Here is how.
1. Find the right timing
Employees sit in the driver’s seat and are more confident than ever with few workers currently available, said Blair Heitmann, career expert at LinkedIn.
That said, asking for a raise is always about timing. So think about how the company is doing financially and where you stand in your job, for example whether you are about to get promoted or have recently taken on more responsibility.
2. Do your homework
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Research the job market and look for salaries on sites like Glassdoor or LinkedIn Salary to better understand your worth.
You need to demonstrate your accomplishments so make sure you have them on hand. Once you know what to say, practice with friends, family, or previous colleagues.
“Talking about your achievements can feel uncomfortable, but being able to talk to them effectively is important in order to negotiate a higher salary,” said Heitmann.
You may even want to get information from your boss.
Ramit Sethi, personal finance coach and bestselling author of “I Will Teach You to Be Rich,” suggests setting up a meeting with your manager to see what you need to do to become a top performer. Then, get down to it before scheduling a meeting for a raise.
3. Address your boss correctly
Don’t just go to your boss’s office and ask for a raise – it has the opposite effect.
Instead, schedule a meeting to connect with your manager about your long-term goals. If it is safe and possible, arrange a personal interview, suggests Heitmann. If not, video meet in a quiet place with no distractions.
4. Build your case
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When meeting your manager, start with the reasons you enjoy working for the company and explain your long-term goals.
“Focus on why you deserve a raise, not why you need or want one,” said Heitmann.
Don’t be afraid to represent yourself. Share examples of your successes and positive feedback you’ve received.
“It’s not about boasting,” said Bremen. “It’s about articulating clearly and objectively the contribution you have made in recent years.”
In fact, many people underestimate their strong negotiating position, Sethi said.
If your boss feels cornered or forced to give you a raise, it could affect your work relationship.
Career expert at LinkedIn
“The vast majority do not negotiate and are afraid to negotiate, but a single raise of $ 5,000 early in their careers can lead to hundreds of thousands of dollars,” he said.
If you’ve been looking for work outside of your company and received a competing offer, don’t mention it, warns Heitmann.
“If your boss feels cornered or forced to give you a raise, it could impact your work relationship – and result in fewer opportunities for raises and promotions across the board,” she said.