Value of a Single, Significant Raise | The Job Sauce (2024)

FAQs

Value of a Single, Significant Raise | The Job Sauce? ›

A $10,000 raise is worth much more

It's always a good idea to ask for anywhere from 10% to 20% higher than what you're making right now. You may be able to ask for more based on your performance, length of time with the company, and other factors. Make sure you come prepared when you negotiate your raise and be confident.

How much should you ask for? The average pay raise is 3%. A good pay raise ranges from 4.5% to 5%, and anything more than that is considered exceptional.

Additional Income

While $1 may not seem like much, it can add up to a lot over time. If you can get a raise larger than $1, you'll see your lifetime earnings go up even more. That's why a promotion or raise can make a difference in your finances.

Make sure to figure out how much to save every month and put some of your money to work in a 401(k) or another retirement fund. With the money that's left, you can spend as you see fit, invest it in the stock market, make charitable donations, or decide other ways to use it.

But, 10 to 20 percent isn't outrageous if you're being promoted. If you're remaining in your current position, you still deserve a raise. However, be realistic and stick to the three to five percent range, depending on how long you've been with the company, your past performance, and your current responsibilities.

One, ask for a specific dollar amount or percentage. A common adjustment is in the 3% to 5% range. Now, that doesn't always mean you shouldn't ask for more, but it's important to keep it reasonable. Two, research the market in multiple ways, including reviewing salary websites that provide broad data.

For example, if you are currently earning $20 per hour and receive a 5% raise, your new hourly wage will be calculated as follows: 5% of $20 is $1 (0.05 * 20 = 1) Add this increase to your current wage: $20 + $1 = $21. New Hourly Wage: $21 per hour.

While 4% will be the average raise for workers in 2024, certain industries will offer higher raises than others. Here are the projected raises by US industry based on a report from Payscale: Energy and utilities: 4.5% Engineering and science: 4.4%

For promotions from entry-level to mid-level positions, a salary increase is of around 5% to 15% is typical. This may vary based on factors such as job performance, experience, and the specific responsibilities of the new role.

How do you negotiate a significant raise? ›

How Long Should You Work Without A Raise? Every worker is different but most find that they should expect a raise every 1-2 years. However, comparing your salary against those of your coworkers and industry as a whole will highlight whether you are underpaid or not.

Typically, a promotion comes with a 10-15% salary increase, reflecting an individual's enhanced capabilities and their contribution to the company's success. This percentage can vary based on the level of promotion and the industry norms.

There's no magic formula – finding the right number will need effort. According to Investopedia, the amount you seek in a raise should reflect your tenure with your employer and your role within the company. Aiming for a 10% to 20% increase from your current salary is generally seen as a good, reasonable starting point ...

They also found that asking for between 5% and 25% pay increases yielded the most successful negotiations. Using a range of options was not only effective in expanding potential outcomes but was also an effective strategy because it communicates politeness. But the tactic has an upper limit.