Many of you may be sat in employment at the moment looking at ways to earn extra income. You may to pay off debt, pay down a mortgage faster or just want to build up your savings.
The fastest way of putting money in your pocket is to cut your household costs and living expenses.
After gaining control of your finances and cutting your spending you should seek to raise your income.
There are a number of alternate ways of earning extra income. One such way is to start a blog. But there are a great many other options to earn extra income online.
Ask for a pay rise and it will be given
If you’re in employment you may not have considered asking for a pay rise. And if you have, you may not know how to approach the situation.
More often than not, we don’t find the courage to demand a pay rise. Most people feel uncomfortable negotiating. They worry they will come across as pushy or fear they may lose their job by asking for a pay increase.
If you need the motivation to push such fears to one side, a survey by PayScale found that 75% of employees who asked for a pay rise got one.
There was an undeniable correlation between those who asked for a pay rise and those earning more. And, as people earn more, their demands for pay rises were more likely to be met.
So it would seem, as you climb the pay scale, it becomes easier to make demands for a pay rise and get it.
When to ask for a raise?
You’ll be surprised at how quickly you can raise your income by asking for a pay rise. Too often we get stuck in the grind and don’t ponder changing jobs or asking for a raise until we are unhappy.
If you are unhappy your self-confidence or motivation may have taken a plunge.
Sometimes you are so desperate to leave this unhappiness bleeds into your personal life.
Trying to raise your income from these circumstances is far from ideal. You’ll likely settle for far less than you deserve. Worst still, you may not know what you are worth to before asking and settle for anything.
The best time to ask for a raise in pay is not when you need it. You should ask based on your life plan.
Don’t have a life plan? Sit down and think about it today.
If you understand what you want from your life you should know what you need financially to achieve it. You should navigate your career and salary to align with your life goals. This will be your driver to ask for a pay rise. Doing so will help you look forward to what you need and get yourself there before you are desperate.
More often than not, however, we don’t find the courage to demand a pay rise. Let’s face it, it’s actually not an easy thing to do.
Experience has taught me that asking for a raise will be immediately met with some excuse or justification. Some employers dangle a carrot in your face with false promises to draw you out for six months.
I’ve seen people struggle to get a pay rise in their current role only to leave and get far more money elsewhere. I’ve experienced this first hand as well.
I’m always confused when this happens. The employer generally responds, “we can’t afford to pay you more”. When the employee leaves the employer spends thousands more recruiting someone else.
It’s estimated that it costs a company 20% of person’s salary to replace them! And who knows what the impact on the business of lost productivity.
And who knows what the impact on the business of lost productivity?
My current workplace is hemorrhaging good staff. The impact on the business performance is astonishing as knowledge walks out the door for better roles elsewhere. But, my (ex)work colleagues are all happier for it.
About 5 years ago I was contracting as a developer. I earned $65 an hour . I had been negotiated down from market rates of $70 an hour in exchange for longevity and security in my contract term.
I got to the point where I needed to raise my income, however. When I couldn’t even negotiate a $2.50 an hour pay rise I opted to look around. Within 5 weeks I was starting a job at $90 on a 6-month contract that ended up lasting 18 months.
That’s a 38% rise in income in a matter of weeks!
I always believed that switching jobs to be the fastest way to climb the salary ladder.
It’s easier to take larger salary increases when you switch companies than you can by obtaining a raise or promotion in your current workplace. It was when I came across this post on Reddit that really exemplified how much that rang true.
So how do you go about raising your income?
Step 1: Find out what you are worth
You need to check out what your role is paying in the market. To do this you can check out websites that contain salary data. The Bureau of Labour normally provides salary statistics. You can check out payscale.com, salary.com, glassdoor.com, and Google.
But, don’t stick to one source.
Many job sites contain salary information. Recruitment agents can guide you on how much you can command based on your experience.
When you ask recruitment agents for a salary range, don’t sell yourself short if they ask questions of you.
You may have to take into consideration that some areas of your country pay less due to a lower cost of living. This is often factored into salaries.
If you find yourself needing to raise your income you may have to consider a move to get the levels you need. Of course, that may come with a higher cost of living!
Step 2: Decide if you can sidestep roles
When looking to increase your salary we often only think about promotion as a way to climb up the pay-scale. But sidestepping your role can often lead to more money.
I stepped into full-time employment as a software development in 2013. I was pretty much in the upper tier. There was no way, even by moving companies that I could earn above a certain salary bracket.
I wanted to navigate beyond that ceiling. It was time to think about my future career path. I began to plan out what the next 12 months, 3 years, 5 years and even 10 years could look like and then figure out how I’d get there.
This was my life plan.
I was not going to let work dictate my life. I wanted my life to dictate my work.
This activity focused on the lifestyle I desired rather than my job. I was then able to determine the finances I believed I would need to achieve that life and formulate a plan to get there faster.
I took a hard look at myself.
Despite having about 15 years of working mostly in web development, I have a degree in Marketing and Law. Of those 15 years, I was mostly self-employed. I had experience in sales and marketing alongside my development knowledge. I had many business skills and more.
Taking this into account, I looked into a change of career and moved into product management. This move lifted me above the income ceiling I was hitting as a developer. This side step at the time saw a 15% increase in my immediate earnings.
Consider how you can side step in this way.
To do this, look at your experience, think about the work that you have done and how that might fit into another role.
Look at the types of roles that work closely with your current role particularly where you can demonstrate you have picked up some experience, or at least some good exposure to key parts of that role.
Step 3: Find another job
You are going to look for another job before you go and ask for a pay rise in your current job.
Do this even if you like where you work right now!
There are a number of reasons for this. If you get another offer, and it’s paying more, you’ll be in a stronger negotiating position and you’ll instantly have more confidence in asking for a pay rise.
If your employer claims you won’t get more elsewhere you can present your better offer. Point out, “I got another offer and it’s paying more, but I really want to stay here”.
The point of this exercise is to give you confidence, options, and leverage in negotiating.
And yes, you should be prepared to quit your job for more money elsewhere.
You don’t open the negotiating position until you’ve landed a role you would be happy to take. This means you should ensure you find a place that has the right culture, opportunities, and perks.
You will exude more confidence at job interviews if you are not desperate to leave your current role. And, if you don’t get the role you’ll be less likely to be bummed out and more likely to put it down to a learning experience.
The interview experience will give you insight into the type of questions you’ll get asked. The practice will help you build your knowledge to strengthen your next attempt.Interviewing for jobs you may not necessarily want (or want bad enough) will make you a stronger contender when you go for a role you absolutely want. Expose yourself to the practice.
Interviewing for jobs you may not necessarily want (or want bad enough) will make you a stronger contender when you go for a role you absolutely want. Expose yourself to the practice.If you don’t get the role ask for feedback. Ask for constructive feedback on your resume and your interview. Ask people to shoot from the hip and be honest. This will help you work on your weaknesses.
If you don’t get the role ask for feedback. Ask for constructive feedback on your resume and your interview. Ask people to shoot from the hip and be honest. This will help you work on your weaknesses.Just doing this is likely to tick a box that you’re willing to seek feedback and improve yourself.
Just doing this is likely to tick a box that you’re willing to seek feedback and improve yourself.If you marginally lost the role to someone else and they don’t work out you may set yourself up for a phone call in the future. There’s nothing better than being
If you marginally lost the role to someone else and they don’t work out you may set yourself up for a phone call in the future. There’s nothing better than being shoulder-tapped for a role when you least expect it. If someone isn’t comfortable giving you feedback or you don’t get a response after a couple of nudges, leave it.
If you go for a role and get it, but don’t think it’s the right move, you can always say no.
Be sure to handle the situation carefully, though. You want to make contacts for the future, people you can approach when you do need a job. You must remember by getting yourself out there, you are building relationships. It’s easy to burn bridges if you seem like you’re a time-waster.
Step 4: Approach your current employer for a pay rise
This approach ultimately hinges on whether you want to stay in the job. The Reddit article that inspired this post suggested you be completely transparent with your employer.
The reasons behind why are echoed in the comments. As one commentator aptly puts it:
Simply by admitting you’ve been looking elsewhere, you’ve already turned a corner in your boss’ mind, and you can never go back.
And someone else further responds:
Well that’s why you don’t mention that until you field offers from different places with the salary you desire.
Mentioning you are looking elsewhere can be professional suicide otherwise.
I agree. Your boss is a human being (hopefully) and, from experience, I see some employers take it as a personal insult for you to suggest you’ve been looking elsewhere.
It’s not a personal insult, it’s business. But this is life, this is just how some people react.
If you’re going to put your cards on the table and be completely transparent then be prepared for your employer to force your hand or potentially make life uncomfortable if you back down without a pay rise.
You want to approach your employer and follow these simple steps:
- Ask for a pay rise.
- Point out what the market is paying.
- Present the reasons why you feel you deserve a rise.
- Be confident and compelling.
If you don’t get it and you know in your mind you’ll move if you don’t then you throw in your last hand, “The thing is, I have another offer and I’d much rather stay here because…I like the team, I like the job…”.
From here your fate is in your employer’s hands but hopefully, you have gained confidence in yourself and you’ve set yourself up to feel like you are in control of decisions around your salary.
Few too many people sit in jobs and are happy with the level of pay they receive. If you’re looking to raise your income then asking for a pay rise is essential. But of those people who do ask for a pay raise they accept whatever answer they receive for fear of losing their jobs.
Instead, looking for a new job is often the fastest way to climb the ladder in terms of salary. It is rare that a company you currently work for will agree to the comparative pay rise you can achieve by moving to a new company.
For this reason, it’s often best to look for a new role elsewhere and get other offers before negotiating with your current employer.
Having other offers removes the fear of losing your job, gives you confidence and increases your negotiating power. Landing a new job offer is often vastly easier when you are not in a position of need or desperation. You will exude confidence, more easily weigh up the role and more successfully negotiate a better salary and benefits .
If you want to increase your income in this way, find out what you are worth first. Then plan your career based on what you want from life. When you get yourself out into the market you will network and build relationships with potential employers and agents and seek out your perfect role in your own time. If you get an offer for a role you would take, but would rather stay in your current position if terms were matched, then it’s time to sit your employer at the table with the offer in your back pocket.
Remember, it costs an employer 20% of your salary to replace you and those who ask for pay rises fall into groups of being paid more because they generally get a raise. If you’re sitting at the table with a better position already in your pocket, you can’t lose.
What do you think? Have you ever got a decent pay rise just by asking or have you generally found that you increase your salary faster by moving to a different company?