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But securing larger wages doesn’t necessarily help workers stave off inflation.
Half of those who are now earning more still say their wages are not keeping up with rising costs. However, 39% said the increase kept up with or exceeded the increase in household costs.
Rising cost of living ‘still a lot of exceptions’
Only 31% of workers received a raise to accommodate the higher cost of living.
Instead, workers are more likely to be paid more for other reasons. That figure includes 36% getting a performance-based raise, 16% getting a promotion or taking on new responsibilities, and 10% citing other reasons such as contract or seniority.
“The takeaway continues to be that pay increases have mostly come in the form of performance-based increases, promotions or taking on new job responsibilities,” said Greg McBride, director of financial analysis at Bankrate.com.
Investments in additional training, certification or educational qualifications can quickly pay off during an economic downturn.
Greg McBride
Chief Financial Analyst at Bankrate.com
“Rising the cost of living is still the exception, not the rule,” he said.
According to McBride, performance-based increases are more likely to go to Generation Xers and baby boomers than millennial or Gen Z workers.
However, pay raises due to promotions or new job responsibilities are more common among Generation Z and millennials, than Generation X and baby boomers, he said.
If you feel underpaid, ‘time to brag’
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According to Vicki Salemi, career expert at Monster.com, the best way to get a raise is to look for new job opportunities from outside.
You should also talk to your current boss if you feel underpaid, she says.
Prepare what you want to say before that conversation. Collect salary data by finding placement rates for similar positions from a reputable professional association in your industry and contacting former colleagues to find out if competitors who is paying the new rent.
“State the facts so you can show your boss what you’re worth,” says Salemi.
Also, be sure to highlight your accomplishments at work, such as the new clients you brought in or the number of people and money you’ve managed.
“Time to brag,” Salemi said. “Quantify as much as you can if you can.”
If you’re offered a salary by a new employer, remember to negotiate, even if you’re happy with the offer, she says.
“Employers expect that,” says Salemi. “They’re more surprised when you don’t negotiate than when you do.”
That’s not necessarily limited to your paycheck. You may also want to claim a larger bonus or additional paid time off.
When it comes to a potential recession, it’s also a great time to boost your employability, says McBride.
“Investments in additional training, certification or education can quickly pay off during an economic downturn,” says McBride.
