There are only two ways to get extra money to save. Either you can cut your expenses or start earning extra income. While reducing your expenses is a good first start to sticking to your budget, thereâs only so many soy lattes and unused gym membership that you can get rid of. Itâs often much more productive to focus your energy on increasing your income.Â
There are a couple of different ways to earn more money. You might consider a side hustle or starting your own business. You can look for another job that pays more or try to get more money from your current employer. In this article, weâll take a look at how to negotiate salary increases and promotions and make sure that youâre getting paid what youâre worth.
The difference between a promotion and a raise
One important distinction to make is the difference between a promotion and a raise. A promotion is usually a change in job title and/or job responsibilities. A raise is just what it sounds like – more money. The two often come together, but not always. Be careful when you get a promotion that it comes with a salary increase commensurate with the added responsibilities youâll be taking on.
Know how much youâre worth
Knowing how much youâre worth is a key factor in the negotiations for a promotion and salary increase. There are many online sites where you can see the average salaries for just about every type of job out there. Compare several different sites to see where your salary fits in. If you can show data that youâre underpaid for someone with your experience, education and responsibilities, that can be something your manager can take to HR to approve your promotion and raise.
Track your accomplishments
If youâre looking to negotiate a salary increase or promotion, start by acting the part. Promotions and raises generally are backwards-looking. What that means is that youâre likely to get a raise for work that youâve done or are doing ALREADY. If youâre planning on talking to your supervisor about a salary increase or promotion, it can be helpful to track your accomplishments.Â
If youâve gone above and beyond your job description, or if youâve received praise from a customer or co-worker, keep notes of when and what. That can be useful ammunition to show why you deserve this raise. Avoid the temptation of comparing yourself to your peers – instead, look at the job responsibilities of the role youâre aiming for. If you have detailed descriptions of how youâve been doing those responsibilities already, youâll be well on your way to getting that promotion.
Have regular conversations with your supervisor
Healthy companies have regular conversations between supervisors and the employees that they manage. It is a trait of a good manager to care about the employment and advancement of the employees that they manage. Donât be afraid to talk with your supervisor regularly – ask her for constructive and timely feedback, and ask for concrete steps on what you would need to do to merit a promotion. Then document those steps and come back in a few months with details of how youâve met those steps and deserve a promotion and a raise!
Be prepared to come with a backup plan
Itâs important to understand the pay and compensation structure of the company youâre at. Many companies have pay âbandsâ or ranges of compensation for a given role. Knowing where your salary fits within that range can be helpful when youâre preparing to negotiate a salary increase.Â
Also, if the company has announced a hiring freeze or layoffs, it might not be the best time to ask for more money. Understanding the bigger situation can help you pick the right time to have the discussion. Be prepared for what youâll do or say if your supervisor turns your request for a raise down. Is there anything else that would be meaningful to you? Maybe itâs a more flexible working arrangement, deferred compensation like stock options or other types of non-monetary compensation.
Donât be afraid to leave
At the end of the day, youâll have to decide how much working at this job is worth it to you. Itâs always a bit nerve wracking to quit your job, but itâs generally much harder to get a significant raise without moving to a new company. You donât want to be hopping around from job to job every few months, but itâs also important to feel like you are getting paid the money that you are worth.Â
If you donât get the promotion youâre looking for, then it may be time to start exploring other options. After all, the best time to look for a new job is while you still have your OLD one (and donât have to worry about making ends meet)
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