Everybody wants to receive a raise. Heck, everybody wants to receive a raise every year.
Although not everybody gets what they want, how can YOU ensure that you receive the raise that you’re expecting this year?
First, here’s the good news. According to media reports, companies are expected to give raises during the next 12 months. (In the years immediately following the Great Recession, that was not the case.)
Okay, here’s the bad news. The typical raise that companies expect to give is right around 3% . . . which is the same raise they gave last year . . . and the year before that. The problem is that the annual inflation rate is usually 3%.
When adjusted for inflation, this means the raises companies are expected to give this year are not really raises at all.
So, it’s not actually a case of getting a raise, but a case of getting a substantial raise, one that will not just cover the annual rate of inflation. With that in mind, what should you do to ensure that you receive a “real raise” this year?
Start with the following four things:
1. Meet with your supervisor to discuss the company’s current compensation structure.
2. Ask about the different forms of compensation available to you and how you can achieve them.
3. Express your desire to be a top performer.
4. Ask your supervisor to help you brainstorm ways in which you can become a top performer and achieve higher levels of compensation this year.
Keep in mind that more companies are opting for compensation in the form of bonuses and one-time rewards. These rewards could also include extra paid time off and/or a more flexible schedule. Have a plan for factoring these forms of compensation into the equation.
Also keep in mind that the way in which many people receive a “real raise” is to change jobs. That’s because a raise in compensation of more than 3% usually accompanies such a change, since it’s upwardly mobile in nature.
The steps outlined above open up the lines of communication with your supervisor and also set expectations. That way, you know exactly what you need to do in order to accomplish your stated goals.
And if you do what you need to do and you still don’t receive the raise you were seeking?
Then perhaps it IS time to seek a new employment opportunity . . . with a corresponding substantial raise in compensation.