While the best things in life may be “free” (family, friends, etc.), the reality is that we all need money…lots of money. This seems to be especially true in today’s world, as we have faced some economic challenges that we have not experienced for a while.
When you consider where the inflation rate has been over the last few years, maximizing compensation has been on the mind for many workers. While we all want satisfying work surrounded by co-workers we enjoy being with, the reality is the price of groceries, gas, etc. has created a situation where we have to make much more just to stay even.
Unfortunately, the answer to more money is usually not driven by staying with your current company. This is especially true if you are not subject to receive a major promotion. Some simple math clearly spells out what I am referring to. Inflation has run between 4.1-8% (according to the Bureau of Labor Statistics) over the last three years. This is compared to inflation in the 1.2-2.4% range over the previous five years. This is a major difference to everyone’s pocketbook.
If you have stayed with your current employer over these last three years, you probably averaged somewhere between 2-4% for a merit increase. So, each year, for the last three, your “real” compensation has probably actually declined (comparing your merit v. inflation). Not an ideal situation and certainly not maximizing your compensation!
You can hope that your current employer recognizes this loss of buying power and will surprise you by making a market adjustment to your compensation. This is very wishful thinking, because unless you work for a very forward proactive thinking organization, it is unlikely to actually occur. Unless a company is suffering from high employee turnover or has a persuasive Human Resources Department, who can convince leaders to pay more since a market adjustment just does not happen that often.
You can also take the tactic of meeting with your manager and requesting more money. This usually only works if the company feels that you have significant leverage, such as a legitimate threat to leave or possessing job knowledge that does not currently have a replacement. Taking this strategy typically only works once and any further attempts usually will get you labeled as a complainer or someone “disloyal”. If you are going to go down this route, prepare yourself for the meeting with your manager. Your mindset should be on what you are going to accomplish for your employer and what the labor compensation market data shows. Do your research online and have an idea what your worth is in the marketplace. The focus on your future is logical because if you were to be rewarded for your past, then the company would have done it during the merit process, so you need to sell them on the future.
The last internal option that you have to increase your compensation is a promotion. When you are evaluating your chances for a promotion, you have to be honest with yourself by asking a few questions. Is there a likely path for you to receive a promotion? Waiting for someone to leave is a pretty passive strategy that does not place yourself in a very good position. Will you even be considered for the role if open? If there are others in your company that are stronger performers, have been there longer, or have greater skills, then your chances of being considered are nil. Furthermore, even if you are promoted, often increases of this nature range from 7-10%, which actually does not really do a very good job of bridging the gap between inflation and your recent merit increases.
Finally, this leaves one obvious path for increasing your compensation and that is to leave your current organization for a new opportunity. Of course, there are other reasons to stay with your employer, such as a great boss, enjoyable co-workers, and rewarding work to just name a few. There is no denying that non-monetary aspects of work creates value for a person. But if increasing your compensation is on your mind right now, then all signs point to making the jump and leaving for another company. Change can be really hard, but it is often the only way to maximize your compensation and allow you to get paid what you are really worth.
As always, best of luck in your job search.
The following has been prepared for the general information of WNYJobs readers. It is not meant to provide advice with respect to any specific legal or policy matter and should not be acted upon without verification by the reader.
Joe Stein
WNY Human Resources Professional
Feel free to contact Joe Stein regarding questions or comments at:
Joe Stein
