While a higher salary can increase your net worth, negotiating a raise or leaving your job for a higher paying salary requires demonstrating your professional worth to an employer. Most employers plan to give small raises to employees in 2014, but star performers can see 75 percent more than average workers, according to a Towers Watson Data Services Salary Budget Survey. With high performance and a plan, you can build your salary and worth.
Because You're Worth It
It’s important to find out the range of compensation a company would have to pay to find someone like you, says salary expert Jack Chapman in a blog article for The Ladders. While a company will offer you a salary based on what it wants to pay you, it’s up to you to know if that salary meets the fair market value of what you bring to the organization and whether that salary meets your personal needs as well, according to Chapman. For example, you might be compelled to take a lower salary if you’re financially strapped and need the money. Researching your job using online sources such as the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook can help you determine what your current and future skills, education and experience are worth, which can prepare you to negotiate fairer compensation.
Being More Valuable Than You Cost
Increasing the value of the work you provide for your employer demonstrates your increased professional worth and can give you leverage to negotiate an improved salary. Your employer, however, can see increasing your salary as more of a cost, which can derail your negotiation efforts. Couching your request for a raise in terms of the increased benefit to your employer and the future value you’ll add rather than on your past performance or personal needs will improve your chances of approval, according to “Forbes.”
Plotting Your Course
Mapping out the type of work and salary you want at certain points in your career can provide you a route to help you achieve. Careers are rarely linear anymore, says job recruiter, Nathaniel Koloc, in a 2013 “Harvard Business Review” blog article. Looking at your career as a series of stepping stones moving you upward and forward can help you build a worthwhile and fulfilling career over time, says Koloc. Having career goals to guide you can make you less likely to stay in an unfulfilling, underpaying position for too long.
Toward a Bigger Net Worth
Increasing your salary helps increase your net worth. Basically, your net worth is how much money you have after your debts are paid off. This includes the value of your assets and your income. If you can’t immediately increase your salary, then negotiating lower interest rates on your debt can help you increase your net worth, according to Bankrate. Keeping a record of your expenses can give you a better view of where to cut costs and increase debt repayment, which also helps. Spending less than you earn while continuing to aim at earning more strengthens both your net and professional worth over time.
- The Ladders: Salary Negotiation Tips: Know How Much Money You’re Worth
- Forbes: How to Negotiate a Higher Salary
- Harvard Business Review Blog Network: Build a Career Worth Having
- Bankrate: 3 Steps to Boost Your Net Worth
- Society for Human Resource Management: ‘Star’ Performers Earn 75 Percent Larger Raises Than Average Workers
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