Ever wonder how your company decides what to pay you and how much of a raise you deserve? Get the inside scoop, according to PayScale on how companies determine salaries and wage increases.
Although many employees hope to get pay increases of up to 6% to 8%, very few will actually achieve that bump. For many companies, the average budget increase for salaries is about 3.9%, according to PayScale. If you are getting a raise of more than 4% it may not be what you were hoping for, but it still shows your employer considers you a top performer.
Despite the plethora of salary information online, that doesn't mean your company knows the national average wages for a person in your field and in your location according to PayScale. By doing your own research and presenting it during your review could help sell your boss on giving you a bigger salary increase. Companies don't want to risk losing talent to their competitors because they are paying below the average.
In most workplaces, raises come once a year and employers might not remember the great job you did on a project 10 months ago. Keep track of your achievements throughout the year; when it comes time for your review use your list to make a strong case for a raise.
Managers often have little influence over their employees pay raises, according to PayScale. So even if you do a terrific job and follow all the pay raise tips, your manager's hands could be tied and your fate lies with a higher level of the management.
Many workers have experienced their biggest salary jumps when they get a new job or threaten to quit because of another job offer. While it is risky, a potential new gig can be a potent bargaining chip, but it can also lead to you losing your current job. Think it through and be prepared to leave before heading to the bargaining table.
Curious how big companies determine wages? Here are five of the best-kept company salary secrets, according to PayScale.