What constitutes a good salary rise?
Inflation has played havoc with more than our grocery bills. It can be difficult to determine how much of a salary rise you need to enjoy a meaningful impact on your purchasing power, let alone simply keep up. The Wall Street Journal recently put this matter under the spotlight, as summarised below.
– UK inflation hit 9.4% in June 2022 but don’t assume you should base your pay rise request on the same figure. You’d be better off trying to calculate your own personal rate of inflation to understand how much of a rise it would take firstly to break even and secondly to gain purchasing power.
– It helps to compare pay ranges for similar roles and find out what others at your level of experience are earning. So do your research. Speak to trusted recruitment experts. Investigate salary information published on LinkedIn for open roles.
– To gauge a given rise, ask your boss or HR how the company arrived at the number it’s offering. Does it benchmark your salary to the market? Is there a pay range for your role on the table? What would you have to do to increase your pay?
– If a large salary hike isn’t on offer, your company may be willing to offer you a one-time bonus in recognition of your performance and/or to boost retention. Additional perks could also be a satisfactory alternative.
– Changing roles or securing a promotion are good ways to achieve a meaningful salary hike. Changing companies can fast-track the process. But if you’d rather not jump ship, focus on setting yourself up for career advancement. The financial rewards will come later.
– Bear in mind that while nothing is preventing you from asking for a rise in line with inflation, you may not get it. Before voicing your request, prepare your case carefully, and think through your next move if it’s met with a refusal.
For an up-to-the-minute picture of salaries for equivalent roles on the market, please get in touch. ABL’s longstanding relationships with over 400 leading companies worldwide give us a unique perspective on the latest developments and trends, which we’d be delighted to share with you. Whether you’re actively seeking your next career move or just want to get a feel for the market, please get in touch!