What will inflation mean for salary increases in 2023? Well, if you are an employer, you can say goodbye to the standard 3% raise. A recent study by software company Salary.com showed that the medium will be 4%, with one-quarter of employers planning to give increases in the 5 to 7% range.
These numbers are for the existing workforce. "Talent Talk" reported at the beginning of the year that passive candidates making a job change were getting 10 to 25% bumps in the plastics industry. That has cooled a bit, by the way, but not much.
If you like your situation at work, but also want a raise, what should you do? First, update your resume in case you get fired for asking. Just kidding — you will not appear ungrateful or greedy for trying to negotiate a pay increase, but you need to go about it the right way.
Timing is everything. If the company is not doing well, you have been in your role only a short time, or a project you are working on is struggling, you need to “read the room” and wait for a better time. When a project has just been successful, the company announces record earnings, or wins a big new contract, then the time might just be right.
Next, do your homework to understand if you are in fact underpaid. Remember, one possibility is that you are not. Just wanting more money is not enough. Use available tools like Salary.com, Glassdoor, Indeed, and the Bureau of Labor Statistics to get a general idea of where you should be. Caution — this is more for talking points; do not expect data that is accurate for your situation.
Finally, prepare your case and come up with an increase, or perhaps a range, that you think would be fair. Use quantifiable data based on your achievements, money you brought into the company, or costs that you have saved. Anticipate questions and be ready to answer them. Write out a summary of your presentation so you can follow up with an e-mail after your meeting.
About the author
Paul Sturgeon is CEO of KLA Industries, a national search firm specializing in plastics, packaging, and polymer technology. If you have a topic you would like to see discussed, a company that is growing, or other ideas for this blog, e-mail Sturgeon at [email protected].