Now is the time to ask for a pay raise. Here’s how to do it well
Employees who tap into a time of higher company budgets and short-staffed teams will see their negotiations pan out
By | RENA NIGAM | www.fastcompany.com
Whether you’re planning to return to the workforce, switch industries or functions, pursue a leadership role, seek out more money, or find a job that better fits your lifestyle, this is your year.
If asking for a raise or seeking out a higher-paying job has been on your career to-do list, this is a great year to make a move that helps you level up in terms of compensation. While the onset of the pandemic resulted in layoffs and high unemployment, the past year has seen unprecedented hiring alongside a trend of record numbers of workers leaving their jobs during the Great Resignation. This has created a demand and supply gap in which there are more open opportunities than candidates, putting job seekers in a unique and timely position.
This year, candidates are well-positioned to seek out jobs with more responsibilities, higher pay, and better benefits. Many companies are adjusting incoming hires’ salaries in light of the increased talent demand and in response to inflation.
This often means that new hires are entering at a higher rate than current employees doing the same job. Additionally, chances are that if you’ve been in your current position for a while, even if you’re getting annual raises at a certain percentage, you’re likely below market rate in light of all that has happened in the labor market over the past year. If you discover through research that roles at other companies are paid at higher levels, it’s time to initiate that discussion.
