Are you getting paid enough or is it time to make a move? (2023)

FAQs

What salary increase is worth moving for? ›

While the average range for job increases is 5-10%, that doesn't mean you're limited to these figures. When switching jobs, you should aim to negotiate for at least a 10-20% pay increase. Why aim high?

If you are being paid less than someone else for the same job in the same industry and location, especially if you have more experience than that person, you're being underpaid. Once you've done your research and chatted with people in your industry, it's time to talk with your manager about a raise.

Considering when to take a cut in pay is both a personal and professional decision. The decision to accept lower pay requires considering factors like the risks and rewards of the pay cut. Rewards might manifest in the opportunities presented by a new job, or a chance to change roles or set your own hours.

Consider giving a salary range, not a number

If a job post asks applicants to state their expected salary when applying for the position, then give a range — not a specific figure — you're comfortable with. Answers like “Negotiable” might work, but they can also make you look evasive.

How much of a raise should I ask for? The average pay raise is 3%. A good pay raise ranges from 4.5% to 5%, and anything more than that is considered exceptional.

Over the years, COLAs have varied. In some years, prices are stagnant, and no adjustment is needed. Since 1975, the Social Security Administration has calculated COLAs using the CPI-W. The average annual COLA since that time has been 3.7%, which makes the most recent adjustment of 8.7% greater than a typical year.

Wage compression can occur when a company has a history of infrequent raises or salary increases. It may also occur if a change in leadership, structure or market calls for the company to entice new talent by using higher wages or higher total compensation packages.

You should work for at least one to two years without a raise. On average, waiting any longer than two years is too long, and working a job for three years without a raise is unacceptable.

When you don't get the salary increase you expected, don't panic. Try not to take it personally, take a deep breath, and consider your strategy for moving forward. Don't Quit Right Away. Unless you have another secure job offer waiting for you, it's probably wise to avoid quitting in a huff.

If a work-life balance isn't attainable with your current role, a more low-profile position with lower pay might do the trick. However, if your immediate and long-term goals revolve around paying off your student loan debt and purchasing a home, a pay cut might not be worth it.

Should I accept a job offer with lower pay? ›

If you see opportunities to move into a bigger and better role after the one you are about to accept, then it may be worth taking a temporary dip in salary. Another good reason for accepting a job which has a lower salary than your current one is the opportunity to gain some knowledge and skills.

The job will allow you to gain experience If the skills you learn from the lower-paying job are transferable to your dream job, then it's worth taking the job just to gain the experience. This is especially true if you are changing careers or industries.

If you decide to share a range for desired salary in the interview, always make it a broad range, like $40,000-60,000. And state your desired range boldly. Don't be tentative, or offer the range in the form of a question. Then, immediately shift the conversation back to the skills and value you will bring to the role.

A good rule of thumb is to keep the lower end of your range at least 10 percent above your current salary, or the number you determine is a reasonable salary for the position. For example, if you currently earn $50,000, you may say that your range is $55,000 to $65,000.

When we speak of 2023, the gross minimum pay in the US comes to $27.77 per hour. The average income in America is from $45,060 to $335,200 per year and comprises a housing, transport, and other remunerations and perks as well.

While the 2022 COLA adjustment was 5.9%, government inflation data showed costs grew at a faster pace for much of last year. Now, the 8.7% COLA for 2023 is outpacing current inflation, with a 5.8% increase over the past 12 months for the consumer price index for urban wage earners and clerical workers, or CPI-W.

Ask with confidence

Your employer should be able to tell you have done your research and can support the need and value of offering your a cost of living pay raise. If you show confidence when asking for an increase, your employer is likely to feel more confident in agreeing to your request.

Cost-of-living raises are more and more critical, with inflation driving our daily expenses well above average wages. So don't be afraid to ask for one. If you've done your research, know your worth, and have a plan for whatever the outcome may be, you're more likely to see the income you deserve.

What is quiet quitting job? ›

Quiet quitting is a softer approach than outright leaving a job. The term isn't literal but a play on words. Rather than workers quitting jobs, they are quitting the idea of going above and beyond. Unhappy with some aspect of their current company or role, they choose only to complete the bare minimum.

Set up a meeting. Palfrey says to schedule time with a manager to discuss why they are being paid at a lower rate than the new hire, “provided that they do have evidence that this is the situation. “Maintain a calm demeanor but be perfectly clear about how this affects you,” Palfrey says.

And while average annual wage gains for all workers – including existing staffers and new hires – dropped from a peak of 5.9% in March 2022 to 4.2% last month, that's still a historically robust increase, according to the Labor Department. Workers who changed jobs are doing even better.

While $1 may not seem like much, it can add up to a lot over time. If you can get a raise larger than $1, you'll see your lifetime earnings go up even more. That's why a promotion or raise can make a difference in your finances.

Although there's no law against it, firing employees simply for asking for a raise isn't a good business practice. You want to keep employees who put their best efforts into their job, and are willing to go the extra mile.

The median employee tenure in the US is 4.3 years for men and 3.8 years for women. You've likely been told before that staying in your current position for at least a few years is important, and many Americans take this to heart.

Establish your target salary

Then, come up with a figure to give your manager when they ask. Typically, it's appropriate to ask for a raise of 10-20% more than what you're currently making.

A study from the Pew Research Center revealed that low salary was the top reason employees leave for a new job. Other reasons for leaving a job included lack of benefits, being overworked and being under-challenged and -utilized.

Most employers give their employees an average increase of 3% per year. Consistent job switching may have an impact on the rate at which your salary increases.

It's perfectly acceptable to decline a job offer if the salary is too low—but don't do it as soon as you get the offer. A low salary offer can hurt, so give yourself some time to digest the offer before you respond.

Do employees work harder when paid more? ›

Research from Harvard Business Review shows that when a company gives an unexpected pay raise, workers tend to work harder than is required. This is true even if these workers aren't afraid of getting fired.

Broadly, the study found that a higher minimum wage led to greater productivity. “Employees work harder per hour,” Persico says.

A low-ball salary offer is one that's way below your minimum acceptable level. I want to present two real-life examples of our candidates receiving what could have looked like low-ball offers.

It is simple: you can lose a job offer by negotiating salary if you make unreasonable demands or by going below what is expected of the request.

Simply say thank you for the offer, but that you need some time to think about it. Make sure you give a timeframe (two to three days is a good guideline) for when you will have your official answer, and ask for the offer in writing if you don't already have it. “Thank you for getting in touch!

Higher income appears to correspond to increases in almost all other things that make a happy job. Some of these things include interesting work, autonomy, flexibility, and interesting coworkers.” So in other words, if you make more you'll be happier in work, but maybe not so much in life altogether.

For many, working at a job they love is more fulfilling, productive, and important than money. It can even lead to a higher level of success. To determine what job you will love, you should ask yourself a few questions about your dreams, goals and strengths.

Such things include your needs, career goals and much more. Truly, a job that offers you a big salary gives more leeway to financial stability but on the flip side, a job that gives you satisfaction can also have far more reaching benefits for your mental health, work-life balance and career progression.

Rather than offering a set number of the salary you expect, provide the employer with a range in which you'd like your salary to fall. Try to keep your range tight rather than very wide. For example, if you want to make $75,000 a year, a good range to offer would be $73,000 to $80,000.

How do you answer pay expectations? ›

Make them go first

This question might sound familiar because it's become a standard part of the recruiting process: “Before we go any further, would you mind telling me your salary expectations?” And you do mind! While it's tempting to try to figure out the best number to say, your best move is to say nothing at all.

Consider negotiating lower if 10-20% places you above the average. Is the pay in-line with average pay, but still believe you can negotiate based on your skills? Consider a range between 5-7% above. You don't want to risk your chances with a company that is genuinely interested in your financial well-being.

Should You Always Negotiate Salary? It's normal to ask for higher pay or more benefits before accepting a job offer. Most professionals agree that you should always negotiate salary when starting a new job. This is likely the easiest and most crucial time to talk about money.

I'm looking for a competitive salary that reflects my qualifications and experience. Based on my research and the requirements of the role as I understand them, I would expect a salary in the range of $X to $Y.

To avoid confrontation, focus the conversation on facts and data. You can say, “Based on my research, the average employee in this role in our city makes [salary range]. Based on my background and experience, I think [this range] would be fair.” Giving a range can show that you're willing to negotiate.

While a 4% raise may seem reasonable, it's still not in line with cost-of-living changes that are taking place. Despite the fact that typical salary raises have increased, the current 8.5% annual rate of inflation is still much higher.

What is the appropriate salary raise in 2023? Data from The Conference Board suggests that the projections for median salary increases in 2022 are 3%, consistent with the average raise percentage for the last 10 years. This holds true across all employment categories, including: Nonexempt hourly.

A 30% raise in salary is very high, comparatively. Why such a big jump in compensation? It may be that your current salary is unusually low for your field, or for your talent and effort. You may be seriously underpaid, in which case you have to take into consideration the reasons you were undervalued.

Is asking for a 10k raise too much? ›

When asking for a raise in your current position, it is typically acceptable to ask for up to 10% more than what you are making now. However, it's important to ensure that you go to the meeting equipped with examples of when you excelled within your position and how you have added to your company's overall successes.

A 10% raise is well above average, but it might not be unreasonable. Depending on how long you've been with the company and when you last received a raise, you might be entitled to far more compensation than you're currently receiving.

Understanding the Numbers

As U.S. inflation trends downward in 2023, the projected average total salary increase has risen to 4.6%.

The average salary in the United States was $58,260, with an average hourly wage of $28.01, according to the May 2021 National Occupational Employment and Wages Estimates from the BLS. As of 2021, it's estimated that women in the U.S. earn about 83 cents for every dollar that a man earns.

Salary increases should take into account inflation. When a worker gets a raise, the visible paycheck increase should increase more than if there were no inflation. This is because businesses know to compensate salaries with higher growth due to the effects of inflation.

There is no legal requirement for employers to provide cost-of-living adjustments. However, employees who are part of a union may have COLA pay as a part of their contract. For most employers, however, cost-of-living adjustments are entirely discretionary.

It is simple: you can lose a job offer by negotiating salary if you make unreasonable demands or by going below what is expected of the request.

Wage compression can occur when a company has a history of infrequent raises or salary increases. It may also occur if a change in leadership, structure or market calls for the company to entice new talent by using higher wages or higher total compensation packages.

Experts agree that you should stay at your place of employment for a minimum of two years. It's enough time to learn new skills and build your qualifications, while short enough to show that you value growing in your career.

Yes, a salary negotiation can backfire if the negotiation comes too early or if you agree to a verbal offer then ask for more money later. You should avoid trying to negotiate a salary before the company even offers you the position.

How long should you go without a raise? ›

You should work for at least one to two years without a raise. On average, waiting any longer than two years is too long, and working a job for three years without a raise is unacceptable.