There are only two ways to get extra cash to save. You can either cut your expenses or generate additional income. While Cut down on your expenses is a good first place to start to stick to your budget. There are only so many soy slats and idle gym membership to get rid of. It is often much more productive to focus your energies on increasing your income.
There are several ways to make more money. You could consider doing a sideline or starting your own business. You can look for another job that pays more or try to get more money from your current employer. In this article, we'll look at how to negotiate salary increases and promotions, and make sure you're paid for what you're worth.
The difference between a promotion and an increase
An important difference is the difference between a promotion and an increase. A promotion is usually a change in job title and / or responsibilities. A raise is exactly what it sounds like – more money. The two get together often, but not always. Be careful if you get a promotion that comes with a raise in line with the extra duties that you will be taking on.
Know how much you are worth
Knowing how much you are worth is a key factor in negotiating a promotion and raise. There are many sites online that you can see the average salaries for almost any type of job. Compare different websites to see where your salary fits. If you can see data that is underpaid for someone with your experience, education, and responsibilities, your manager can forward it to HR to approve and increase your promotion.
Track your achievements
If you want to negotiate a raise or a promotion, act first. Promotions and raises are generally backwards. This means that you will likely get a raise for work that you have already done or are already doing. If you plan to speak to your manager about a raise or promotion, it can be helpful to track your achievements.
If you've gone beyond your job description or been praised by a client or colleague, make a note of when and what. This can be useful ammunition to show why you deserve this raise. Avoid the temptation to compare yourself with your colleagues. Instead, look at the tasks of the role you are aspiring to. If you have detailed descriptions of how you have already performed these duties, you are well on your way to receiving that promotion.
Have regular discussions with your manager
Healthy companies have regular conversations between managers and the employees they manage. It is a trait of a good manager to care about the employment and promotion of the people he manages. Don't be afraid to speak to your manager regularly – ask them for constructive and timely feedback and specific steps on what you would need to do to earn a promotion. Then document these steps and come back in a few months with details of how you followed these steps and earn a promotion and a raise!
Be ready to create a backup plan
It is important to understand the pay and compensation structure of the company in which you work. Many companies have compensation bands or compensation areas for a specific role. Knowing where your salary fits in this range can be helpful as you prepare to negotiate a raise.
If the company has announced a hiring freeze or layoffs, it may not be the best time to ask for more money. Understanding the bigger situation will help you pick the right time to discuss. Be prepared for what to do or say if your manager denies your request for an increase. Is there anything else that is important to you? It may be a more flexible work arrangement, deferred compensation like stock options, or other types of non-monetary compensation.
Don't be afraid to go
At the end of the day, you have to decide how much work is worthwhile for you. It's always a bit nerve-wracking quit your jobHowever, it's generally much more difficult to get a significant increase without moving to a new company. You don't want to jump from job to job every few months, but it's also important to feel like you are getting the money that you are worth.
If you're not getting the action you want, it may be time to consider other options. After all, the best time to start looking for a new job is while you still have your OLD ONE (and don't have to worry about making ends meet).
Dan Miller (28 posts)
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a website that helps families travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 children.