You work hard, get noticed and are rewarded with a big, fat
raise on an annual basis. That’s how it goes, right? So what's with this wage
stagnation holding you down?
You work hard—as in really hard, as
in holding-a-sandwich-in-your-left-hand-as-you-type-with-your-right-hand-during-lunchtime
hard. And even so, when annual review time rolls around, you only receive the
customary annual salary increase—if you get a raise at all.
Maybe it’s time to make a move to a better employer and more
lucrative salary. If you recognize one or more of the following scenarios, it’s
time to start looking for a job.
You’re paid less than your peers who
work at other employers
You can combat wage stagnation by always knowing what you’re
worth and facing reality. Go ahead, do some digging. Talk with your peers
you feel comfortable discussing money with to find out what they are earning at
other companies
You haven’t had a raise in over 18
months
Technically, two years could be considered the maximum time
you should expect between raises, but don’t allow it to go that long. If you wait
to start your job search until 24 months have passed, you may not be in a new
job until you’re going on a third year of wage stagnation.
So as you reach the 18-month point, it’s time to have a
conversation with your boss about a salary bump. Perhaps your boss told you the
company has had a rough 12 months and as a result, salaries were flat. Now’s
your chance to find out if the same will be true the next time around.
Ask this question: “Based on my performance this past year,
what does my raise potentially look like
going into salary review this year ?” If your boss actually has the
information, hopefully he or she will tell you the truth—or at least give you a
glimpse of what you can expect, even if he or she isn’t aware of specific
budgets. This will give you an idea of where your compensation stands and also
show your boss you mean business.
If your boss shares the same information and seems uncertain
of the future, it’s a sign you should start circulating your resume.
This conversation may feel awkward, but the more you talk about compensation with
your boss, the stronger you’ll be at negotiating your pay for your next job.
Beyond asking your boss, there are a few telltale signs your
company won’t be giving you a raise. When they report low earnings and slow growth, that’s certainly a sign.
Another red flag pertains to a hiring freeze. When budgets are frozen, there’s
no emphasis on spending.
You don’t see promotion potential in
your 12-month future
Even in an environment that’s somewhat stagnant, there could
be significant growth potential for you if you’re on track to a promotion. A
jump up in title often comes with a raise that could get you back up ahead of
your peers. Besides, it could put you in better position to command a higher
title job outside the company, and with better pay, sooner.
On the other hand, if your company hasn’t promoted from
within in a while and your bosses don’t seem to be priming you for new job
responsibilities, a promotion or raise is doubtful.
While it may feel bleak to realize you’re stuck in a salary
rut, try to recognize a closed door as an opportunity to open a new one: Start
searching for a new job where you can negotiate a higher pay.
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