The Great Resignation isn’t slowing down anytime soon. Last year, resignation rates reached historic levels as 47.4 million people in the US voluntarily left their jobs. Another 4.3 million quit in January 2022, all while job openings reached 11.3 million. Only 6.5 million people were hired.
People’s priorities are clearly changing, with over 20 percent of quitters leaving the workforce entirely to become freelancers. Those who choose to stay have all the leverage. Companies today are hard-pressed to convince top talent to stay and harder-pressed to find people with the right skills willing to fill open positions.
Inflation and the cost of living are skyrocketing. People know their value in the war for talent, and they know plenty of competitors willing to provide higher salaries, better benefits, and more flexibility. To retain and attract top talent, companies across every industry are re-evaluating their approach to compensation and benefits. If you’ve been considering asking for a raise in pay and other benefits, now is the perfect time.
How to build your case for a pay and benefits increase
Despite the war for talent and the mass quit rates, most companies aren’t going to give people raises voluntarily. You deserve your raise, but you need to ask for it and make a strong case for yourself.
Schedule a meeting to sit down with your direct manager, and come prepared to demonstrate just how valuable you are to the company with hard facts. Take time to research and ensure the information you present is accurate and powerful. Depending on your unique position and circumstances, consider discussing these points when you sit down for the big meeting.
More pay for more responsibility
Everyone deserves compensation that matches their workload and level of responsibility. You’ve taken on more responsibility and learned new skills on-the-job–all while smashing your own goals. It’s always best to back up your claims with hard data.
Show how much of a value-add you are to the company. Wow your boss: Create a presentation and graphs to visualize the amazing things you’ve accomplished since joining the company, new skills you’ve mastered, and increased productivity levels.
Compensation should match industry standards
According to HiBob research, 27 percent of professionals today want better pay and are willing to leave their job if they don’t get a raise. Will a competitor pay you more with the war for talent at full force?
Some people are getting offers for more pay and benefits left and right from competitors strapped for filling positions with outstanding talent. If you’ve received offers, let your manager know and give them the opportunity to match them.
No matter what, it’s always best to do your research. If you’re earning less than other professionals in your role within your area, present the data to your manager. Combined with your added responsibilities and soaring productivity, these stats make an excellent case for bumping up your pay and getting a better benefits package.
Your compensation should be on par with your colleagues’ compensation
Companies today are investing more resources in fair and equal pay and benefits for everyone. In fact, research by HiBob in Q1 2022 showed that efforts in this area had come a long way: 48 percent of professional women believe the company they work for pays men and women equally for the same role.
If you don’t earn equal pay, no matter what gender you identify with, bringing this discrepancy to your manager’s attention can help you get the raise you deserve.
Always have a backup plan
Even if you’re well-prepared with data and use cases when you ask for a raise, your company might feel that you’re asking too much. So, you’ll need a backup plan.
Meet with a supervisor and discuss how you can make your request a success. If you’re close with your supervisor, let them know you’re open to creating a plan to help you successfully reach your target goals and salary over the next few months. Be open to negotiating.
Higher compensation doesn’t have to be based on salary alone. The raise you want and need can be a combination of a higher salary, more PTO, and additional benefits, like more recognition or professional development opportunities that really fulfill you in and out of work. In fact, a large portion of today’s workforce values “purpose over paychecks.”
When a job gives you meaning and purpose in life – not just work – it can be worth at least as much as a raise or other traditional forms of compensation. Let your manager know you appreciate being valued and talk to them about how you’d like to expand your professional scope – and how you can grow into new roles with your company.
If there was ever a time to ask for a raise, that time is now
HR and hiring managers see eye-to-eye on the impact turnover has on organizations and want to avoid it at all costs. Turnover negatively affects the employee experience and workflow, resulting in even more turnover.
The stresses and costs of searching for and training new hires are usually much higher than simply giving current team members a raise. According to HiBob research, it takes an average of 5.4 months to fill a position after someone leaves. And when new talent finally joins the team, veteran team members bear the brunt of filling the skills gap, hindering productivity, and damaging morale and camaraderie.
So, if you want to ask for a raise, now is the perfect time to start the conversation. Plus, it’s much more common than you might think. While it might feel awkward, there’s so much more to gain than lose when asking for a raise. Companies know what their competitors can offer you, and they know the freedom you’ll gain if you choose to quit and start your own business.
More than anything, businesses know the costs of losing amazing talent. They have so much to lose if they don’t offer their people more, considering the war for talent and the potential pay and benefits increases people can find somewhere else. If companies decide not to meet people’s demands and needs, they risk losing top talent like you. So, do the research, make your case, and ask away.
