By Michelle Fox - CNBC + Acorns
You may be a candidate for a salary increase next year.
The COVID-19 pandemic caused many companies to cut their salaries, but now they are planning to increase them to levels not seen in several years.
Employers
project annual salary increases of 3%
on average
in 2022
for executives, managers, professionals and support staff, according to a survey by benefits consultancy Willis Towers Watson.
This figure is higher than the 2.7% in 2021 and the average increases of 2.8% recorded during several years before the pandemic.
Those who work in
production and manual labor
can expect increases of 2.8% next year, compared to 2.5% today, according to a survey conducted from April to June among 1,220 companies from various sectors.
Cleaning workers take to the streets: "We want a living wage"
June 16, 202101: 28
"What we are seeing is really
a structural change in the labor markets,"
explained John Bremen, managing director of Willis Towers Watson.
After two years of enormous instability, they are trying to find a new balance, he added: more people are changing jobs more than usual, and companies have higher salary budgets.
"This is a welcome opportunity for
employees to promote themselves and help their current employer understand their value,"
Bremen said, adding that he would not be surprised if the average rise exceeds 3% in 2022.
Many employees, however, are choosing to quit their jobs instead of having that conversation.
Before you say "I'm quitting,"
consider talking to your boss and asking for a raise.
Here's how to do it:
1. Choose the right time
Employees have an advantage because of the available labor shortage at the moment, said Blair Heitmann, a career expert at LinkedIn.
"Talking about your accomplishments can be uncomfortable, but being able to talk about them effectively is essential to negotiating a higher salary," suggest financial experts. Photo by Pexels' RODNAE Productions
Asking for a raise is always a matter of time, so
analyze how the company is financially
and what your employment situation is, such as if you are close to getting a promotion or have recently taken on more responsibilities.
2. Do your homework
Research the job market and look up salaries on sites like Glassdoor or LinkedIn Salary.
You will need to demonstrate your accomplishments, so make sure you have them on hand.
When you know what to ask for,
practice talking with your boss with friends, family, or former colleagues.
"Talking about your accomplishments can be uncomfortable,
but being able to do it effectively is essential to negotiating a higher salary," Heitmann said.
You can even ask your boss for information.
Ramit Sethi, personal finance coach and author of the
best-selling
I'll Teach You To Be Rich
, suggests
scheduling a meeting with your supervisor
to ask what you need to complete to become a high achiever.
Then work on completing these tasks or mastering these skills before scheduling a meeting to ask for a raise.
Hispanic Workers Receive More Than $ 300,000 In Wages Withheld After Nearly A Decade Of Struggle
June 1, 202102: 17
3. Approach your boss the right way
Four million people left their jobs in April, the highest number of resignations in a month in 20 years
June 9, 202100: 22
"If your boss feels cornered or coerced into giving you a raise, it could affect your employment relationship in the future and result in fewer opportunities for raises and promotions in the future," he said.
5. Be prepared for "no"
A "no" does not have to be the end of your negotiation.
Treat it like
a performance review,
Heitmann said.
"Find ways to feasibly achieve the goals set by your boss to prepare for a successful raise in the future," he advised.
Remember that being compensated properly goes beyond money.
If your business cannot raise more funds, consider
asking for more paid time off or a flexible work schedule.
This article is part of the Invest in You Ready series. Set. Grow (Invest in you: Ready. Done. Grow), an initiative of CNBC and Acorns, the microinvestment app. NBC Universal and Comcast Ventures are Acorns investors.