There are only two ways to get extra money to save. Either you can cut your expenses or start earning extra income. While reducing your expenses is a good first start to sticking to your budget, there's only so many soy lattes and unused gym membership that you can get rid of. It's often much more productive to focus your energy on increasing your income.
There are a couple of different ways to earn more money. You might consider a side hustle or starting your own business. You can look for another job that pays more or try to get more money from your current employer. In this article, we'll take a look at how to negotiate salary increases and promotions and make sure that you're getting paid what you're worth.
The difference between a promotion and a raise
One important distinction to make is the difference between a promotion and a raise. A promotion is usually a change in job title and/or job responsibilities. A raise is just what it sounds like - more money. The two often come together, but not always. Be careful when you get a promotion that it comes with a salary increase commensurate with the added responsibilities you'll be taking on.
Know how much you're worth
Knowing how much you're worth is a key factor in the negotiations for a promotion and salary increase. There are many online sites where you can see the average salaries for just about every type of job out there. Compare several different sites to see where your salary fits in. If you can show data that you're underpaid for someone with your experience, education and responsibilities, that can be something your manager can take to HR to approve your promotion and raise.
Track your accomplishments
If you're looking to negotiate a salary increase or promotion, start by acting the part. Promotions and raises generally are backwards-looking. What that means is that you're likely to get a raise for work that you've done or are doing ALREADY. If you're planning on talking to your supervisor about a salary increase or promotion, it can be helpful to track your accomplishments.
If you're gone above and beyond your job descriptions, or if you've received praise from a customer or co-worker, keep notes of when and what. That can be useful ammunition to show why you deserve this raise. Avoid the temptation of comparing yourself to your peers - instead, look at the job responsibilities of the role you're aiming for. If you have detailed descriptions of how you've been doing those responsibilities already, you'll be well on your way to getting that promotion.
Be prepared to come with a backup plan
It's important to understand the pay and compensation structure of the company you're at. Many companies have pay "bands" or ranges of compensation for a given role. Knowing where your salary fits within that range can be helpful when you're preparing to negotiate a salary increase.
Also, if the company has announced a hiring freeze or layoffs, it might not be the best time to ask for more money. Understanding the bigger situation can help you pick the right time to have the discussion. Be prepared for what you'll do or say if your supervisor turns your request for a raise down. Is there anything else that would be meaningful to you? Maybe it's a more flexible working arrangement, deferred compensation like stock options or other types of non-monetary compensation.
Don't be afraid to leave
At the end of the day, you'll have to decide how much working at this job is worth it to you. It's always a bit nerve wracking to quit your job, but it's generally much harder to get a significant raise without moving to a new company. You don't want to be hopping around from job to job every few months, but it's also important to feel like you are getting paid the money that you are worth.
If you don't get the promotion you're looking for, then it may be time to start exploring other options. After all, the best time to look for a new job is while you still have our OLD one (and don't have to worry about making ends meet)
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