PHOENIX (3TV/CBS 5) -- From housing to groceries and gas, life is getting more expensive for many people. Prices are increasing, but is your salary following suit?
Asking for more money can be tricky! It’s a conversations many workers avoid having, but in the pandemic some people took pay cuts or didn’t get a raise. So, how do you ask for more money? We enlisted the help of Ryan Naylor, CEO of LocalWork.com.
“Often times we feel, maybe a little under prepared because it sounds greedy, I need more money or I want more money, and we're afraid of what that might do to us, might ruin a reputation or relationship,” Naylor said.
Inflation is up more than 5% in the last year, but Naylor says you want to focus on why you deserve the raise, not why you need it.
“Showcasing your expenses and your cost of living has gone up, might not be the best idea because he's always gonna be looking behind your back, he's gonna be looking at oh I see you walking in with a bigger Starbucks every day, or you're driving a new car. You don't want that, you instead want to focus more on the compensation increase because of the value you’re delivering,” Naylor said.
Naylor says workers want to showcase their value and not play hardball with their boss.
You also want to do some research beforehand like searching Glassdoor to see what similar positions are paying.
“Go find a competitor in your industry and look up similar job titles and see what their average pay is, now these are self-reported so may not be 100% accurate but it gives you a balance of what the industry looks like,” Naylor said.
After that, you want to set up a meeting with your manager to discuss why you deserve a raise.
“Come to the table with a proposition and ask them for feedback, use that as a learning opportunity, or even a mentorship opportunity say, I would like to see myself making X number of dollars within a period of time, what do you think I should be doing to get there,” Naylor said.
But what's a reasonable increase in a year? Naylor says it really depends on the industry.
“Some companies you'll see a blended average, about eight percent increase,” Naylor said.
If you’re moving up the management ladder, Naylor believes you may have room to ask for more.
“If you're getting to go from kind of a mid-level position maybe to a management or mid-level management role, you're gonna see probably closer to a 15 to 20% raise,” Naylor said.
Here’s Naylor’s top five tips on how to approach the topic:
- Volunteer to take on more responsibility
- Keep notes of accomplishments
- Request meeting with a manager
- Practice and anticipate the conversation
- Share goals and request feedback
“Most employers actually are willing to pay for value so if you can show you're producing more value or you have a plan to produce more value. There's a compensation increase that can come with that,” Naylor said.