I believe it is unrealistic to anticipate a raise of 10% given that the average merit increase over the previous four years has been in the range of 4 to 5 percent. Employees whose salaries are not in line with market rates typically get raises of up to 10%. As part of a promotion increase, a company may also give a worker a merit raise. Or, if you’ve performed exceptionally well over the past year and the company wants to reward you for your efforts, you might anticipate a 10% raise.
Why do employees receive raises?
Companies frequently give employees raises for a specific reason when doing so. If you carry out any of the actions listed below, your employer is more likely to give you a raise:
What is considered a reasonable raise?
The perception of the person receiving the raise usually determines what is considered a reasonable raise. Companies typically offer employees a 3-5% pay increase on average. Even if this range doesn’t seem like a fair raise to you, bear in mind that regular pay increases can add up over time and give you a higher income than you did when you first started working for the company.
It’s important to note that although many employers typically provide a pay increase, they may also provide a non-cash benefit or perk in place of or in addition to your pay increase. The percentage increase you may or may not have received does not take this type of raise into account. A career development program, as an example, can help you maximize your earning potential going forward.
When to ask for a raise
It’s important to ask for a raise at the appropriate time when you need one. When you ask for a raise can have a big impact on whether you get one. Here is when you should consider asking for a raise:
What factors determine a raise?
Employers consider a number of factors before deciding whether to give their employees a raise. Here are some of the factors that determine a raise:
Your job performance
Many employers conduct performance evaluations of their employees to identify their strengths and weaknesses and to provide feedback. They may also carry out evaluations to determine whether a worker’s performance justifies a pay increase. Your employer might increase your pay if you do a good job or go above and beyond expectations.
The companys geographic location
The nationwide average salary increase varies by city and state. S. due to changes in cost of living. For instance, due to the higher cost of living in their city, some employees in one region of the country may anticipate receiving a certain raise, while others in another region may receive a raise that is even higher than the national average. Your employer might decide to give you a raise if the cost of living in your area increased in the previous year.
Higher raises are frequently offered in industries with faster growth in order to both recruit new employees and keep their current workforce in order to support this growth. Companies that have experienced more growth typically have a consistent flow of income, enabling them to pay their employees more. Contrarily, slow-growing industries are less likely to offer pay raises.
The job market
Your employer might find it advantageous to give you a raise if they realize that you have a job that stands out on the job market. To put it another way, they are more likely to give raises to those in the positions they need filled if there is a shortage of workers or a lack of properly trained or skilled workers.
Your chances of getting a raise and the size of the raise you get are significantly influenced by your company’s success and regulations. If you already fall within the predetermined range for salary increases, your employer might not be able to afford to give you a raise or may decide not to offer one. However, if your business is successful, it will probably give you a raise.
Numerous employers base pay increases on the number of responsibilities you’ve taken on. If you have taken on new responsibilities that you either requested or were given, it shows that you have a strong work ethic and are a good team player. An employer might decide to raise your pay simply because you can take on more responsibilities.
Your future at the company
Employers are investing in your future when they give you a raise. As a result, your potential with the company may have a big impact on your raise. For instance, a potential employer might think about what your duties might be in the future and whether they want you to work for them for an extended period of time. If they see a future with you, they’ll probably give you a raise and possibly even a significant pay raise.
How to negotiate a raise
While it is reasonable to request a raise that reflects your work ethic, it is crucial to adhere to certain procedures and best practices because they can produce a better result. Understanding why you deserve a raise and how to properly negotiate one are prerequisites for asking for one. Use these steps to help you negotiate a raise:
1. Consider why you deserve a raise
Before you start negotiations, consider the reason for your request. Consider your most recent tasks and projects, times when you went above and beyond, and any instances in which you improved your company. You can use specific examples in your conversations with your manager by reflecting on this.
2. Establish your target salary
Researching pay raises in your industry and profession is equally important to doing your research on average salaries in your profession before accepting a new position. Proper research helps you choose a specific number to present to your manager when you negotiate your salary because it enables you to determine whether you are being paid fairly.
Make sure to investigate the typical pay for those with the same level of experience in your position and industry. Next, come up with a number to provide to your manager when they inquire. Typically, its appropriate to ask for a raise of 10-20% more than what youre currently making You can also use a variety of online resources that calculate a reasonable raise based on your job title, location, and level of experience.
3. Prepare a presentation
When requesting a raise from your manager, prepare your speech. Have a compelling story to tell that highlights your unique work achievements. Organize it well and use it as a sales pitch. Keep your presentation conversational and prepare for questions or counterarguments.
4. Schedule a meeting with your manager
It’s crucial to choose the right moment to begin negotiations when asking for a raise. Keep in mind details like your tenure with the company and its current level of success. You can better negotiate a raise if you ask at the right time.
Tips for negotiating or asking for a raise
Consider the following advice if you require additional assistance when requesting a pay increase or negotiating a higher offer:
Barbara Corcoran Explains How To Ask For A Raise
What is a reasonable pay raise to ask for?
It’s always a good idea to ask for anywhere between 10% to 20% higher than what you’re making right now Depending on your performance, the length of time you have worked for the company, and other factors, you might be able to request more. When negotiating your raise, be sure to be prepared and confident.
What is considered a decent pay raise?
The average pay increase across all employee types budgeted for 2019 was 3. 2%, and the median was 3%. The budgeted mean pay raise so far in 2020 is 2. 9% and the median is 3%. The budget estimates for 2021 use the same numbers. The median budgeted pay raise is in line with the years past at 3%
Is 10% too much of a raise?
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 crucial to make sure that you arrive at the meeting with examples of times when you exceeded expectations for your position and how you contributed to the overall success of your business.