According to CNN, American workers can expect an average salary increase of 3% in 2018. While there are a lot of tips on how to negotiate a higher salary out there, if you’re staying within your current role or even within the same company, it’s not likely that you will be able to gain more than a 5% salary increase. In some extreme cases you might be able to swing a 10% raise if you’re taking on a much more superior role, however this isn’t the norm.
The best way to get a big salary increase
If you are looking to make a big jump in pay grade, this most often requires switching companies. If you stay within your current company, salary increases will be dictated by your current base pay, whereas you have a lot more negotiation power somewhere new. It used to be that going to a new company automatically meant that you could land a salary 10-20% higher than your previous one. While increases of that size aren’t as widespread as they used to be, switching jobs is still the most common path to the best pay raise.
Keep this in mind
It’s important to be aware of the average salary for your position based on location in order to ensure you are not being under paid or taken advantage of. A great tool for this is the Bureau of Labor Statistics where you can see average wage data based on job, state, and metropolitan area. You can also check out websites that list average salaries based on company. These tools shouldn’t be used as an absolute mark of what you should make, however they are a great guide to ensure that you are being compensated correctly based on your location, experience, etc.
Pay attention to growth factors
Take note of where you are in your career and how much room for growth there is. Are you exploring opportunities only to find that you have to start at the ground and work your way up? If so, it’s important to take note of factors that will help you in the long run.
If you’re going into a specialized career or one that requires extra schooling, (i.e. the medical field, engineering, coding/programming, etc.) you’ll often start out with a relatively high level of authority. Since you are coming in at a higher level than other people, you have less room to grow. Think of it this way: If you start out as an administrative assistant but work your way up to an executive or CEO, you’ve basically gone from 0 to 100. However if you start off as a doctor or engineer, you really can only become more experienced in your role and be given more authority, so instead of going from 0 to 100 in your career, you’re starting off at 65 or 70 and moving up to 100.
Benefits matter
Securing a role with benefits that meet your unique needs is the key. This will be different for everyone, and different benefits may make a job more enticing based on your unique situation. 48% of men and 60% of women rate greater work-life balance and better personal well-being as a “very important” attribute in a new job. Depending on your situation, benefits could make a huge difference in your life. If you’re someone with a pre-existing medical condition, getting medical coverage from work could largely impact your health and well-being. Additionally, having a more flexible schedule might be worth it to you based on your location or your household.
Make a list of what benefits would have a big impact (either positive or negative) on your life, and research companies with benefits that align form your needs. You can always negotiate, but looking for a company or position that advertises the benefits that you’re interested in will make it easier on you.
How to negotiate based on your accomplishments
When you’re trying to negotiate a higher salary, keeping a list of your accomplishments is crucial. Let’s say you find yourself severely underpaid based on statistics and your accomplishments. When you go to interview for other positions, make sure you are armed with facts and evidence to support your desired pay increase. A great way to explain your situation to an interview is as follows: “I am aware that I am being underpaid at my current job, however I have learned x, y, and z from this experience/job, and based off of the bureau of labor statistics which show that the average pay for this position in this area is x, along with my accomplishments of a and b, I’m aiming for a salary of $”. If you give a statement like this, you will come off as knowledgeable, confident, and motivated. Having evidence of your achievements and statistics will also make you appear researched and show interviewers that you have put effort into getting fairly compensated.
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If you’re trying to negotiate a higher salary, think about what you really want and what you will need to do to get there. If you love your current company and/or role and salary isn’t the most important thing for you, aim somewhere in the 3-5% annual increase. If you’re trying to make a bigger leap, it might be time to explore external options. At the end of the day, it’s important to focus on what is important to you, and what makes a job worth it. This might be salary, benefits, flexibility, or culture, however whatever makes the job worth it in your eyes is what you should focus on.