Have you recently received a raise or are you hoping for one? If so, you may be wondering how your raise compares to the average. Most employees want to know if their salary is fair – and what they can do to earn more.
How is the raise measured?
The type of raise you receive depends on the state of the economy as well as your industry and profession. High performers can receive raises significantly higher than average performers. Changing jobs can bring you much more money compared to staying at the same company.
Salary increases by the numbers
It seems that companies are responding to the pandemic’s impact on the economy in different ways. According to PayScale’s 2022 report on compensation best practices, 44% of companies plan to give raises above 3% – a 13% increase over the average over the past six years. However, 33% of organizations that reduced or froze salaries in 2020 have not compensated for that and do not plan to in the future.
Jobs with the highest and lowest raises
Although wages and salaries grew by 5.3% during the 12 months ending in June 2022, compensation does not increase at the same rate across all professions and industries. Some sectors have higher wage growth than others.
Types of salary increases
You should consider the type of raise you expect to receive. Raises come in various forms, including general raises, merit raises, promotion raises, and equity raises.
How can you increase your salary?
What is the best way to get a raise? You need to show your employer that you are a valuable employee and should be compensated as such. You should also be prepared to move to another job, as that may be your best opportunity to increase your income.
Frequently Asked Questions
Is a 5% raise good? What is a respectable wage increase?
Sources:
– Payscale. “2022 Compensation Best Practices Report.”
– Bureau of Labor Statistics. “Consumer Price Index unchanged over the month, up 8.5 percent over the year, in July 2022.”
– Bureau of Labor Statistics. “Employment Cost Index – June 2022.”
– Federal Reserve Bank of Atlanta. “Wage Growth Tracker.”
– Mercer. “Actual Increases Were Higher Than Predicted.”
– WTW. “U.S. employers planning larger pay raises for 2022, Willis Towers Watson survey finds.”
– ADP Research Institute. “ADP Pay Insights.”
– Pearl Meyer. “2022 Implemented Base Salary Increases.”
Source: https://www.thebalancemoney.com/how-much-is-the-average-raise-in-america-4582795
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