The Dilemma of Making More Money
There are different ways we can make money. Since the vast majority of us earn our income from a job, one of the best ways to make more money is to get a higher salary. There are three main paths to getting a higher salary.
1. Improve your skills at work, be great at your job which can translate into more responsibility. This can turn into a promotion or salary increase.
2. Switch jobs at your organization or move to another company
3. Switch industries entirely
Most of us instinctually know what to do to get a salary increase. Leaving mediocrity behind, gaining skills, competencies, and knowledge help you get better at your job and more competent in the work you do. It also makes everyone’s life around you (including your boss) easier.
If you have no idea how to get a raise in your organization, there is one individual who does: your boss. Have a conversation. (Yes, that takes courage! See Podcast 172 for help in this area).
Be aware of the pay range of your specific job and skills. Don’t bury your head in the sand and expect that the organization will take care of you. That is your job! Search out competitive pay rates to ensure you are in the appropriate range. Remember that salaries are cumulative and should be increasing at least every 3-5 years.
It can be difficult to identify what behaviors and actions will get you a raise. This can make it hard to know what exactly to do to get that raise. My advice: focus on excellence and other companies and individuals will notice and seek out your employment. Why? Because very few individuals exemplify excellence—it is a hot commodity.
More effort, excellence, and top performance does not always end up with a higher salary increase. This could be out of your control due to the organization's budget or your boss’s discretion.
Take a good look at your earning potential. (I am forewarning you this can be painful). What does your earning potential look like in 20 years? If you make 40,000 dollars a year in your current job, how much will you be making in 20 years with a raise of $1,000 per year? Do you need to think of switching companies or industries to increase your earning potential?
1. Do your salary research
2. Understand the future of your salary
3. Ask for a raise. (It is actually fun to have your boss be nervous for once)
4. Start finding ways to increase and build your income in the next year. This could be an innovative solution such as making money on the side or looking at a different position in your organization.