Here are the hard pocketbook facts you are dealing with in 2006:
Fact 1: Salaries in the USA for 2006 are forecast to increase by 3.6 percent. (That’s a bare two-tenths of a percentage point above a 28-year low.)
Fact 2: The rate of inflation is forecast to hover between 3.5 and 4.0 percent this year. (The rate was 3.55 percent in April.)
Fact 3: You are going to work for less real money (your salary adjusted for inflation) unless you get a raise of more than 4.0 percent.
What about the environment for salary increases?
Despite strong growth in the U.S. economy in recent times, “Companies are still planning to be very conservative on base salaries,” according to Ken Abosch, lead compensation consultant with Hewitt Associates.
More companies are setting their pay to employees by way of bonuses based on performance against stated goals. This variation on the traditional base pay scale means you really have to earn an increase to top inflation.
The bonuses go to the “10 to 20 percent of workers (i.e. top performers) that a company is doing everything possible to retain,” says Joe Vocino, a senior consultant at Mercer Human Resources Consulting.
(Just a footnote on all of this: The average CEO of American companies received at 30 percent increase in pay last year.)
What Are You Going To Do About It?
I’ve laid out some sobering facts and opinions that should provoke you to take a hard look at your situation.
If salary is of primary importance to you and if you are losing the race to earn more than a cost-of-living increase, as I see it, you have three alternatives:
1. Learn what others in your line of work are being paid by your employer and are being paid by the industry in which you are employed. If you’re below the scale, prove to your employer that you should be paid at least up to scale.
2. Improve your performance and convince your employer that you deserve a total compensation package that is higher than inflation.
3. If you can’t get a raise above the rate of inflation with your current employer, look for another job.
What’s your opinion of this situation?
I am sure the readers of Re: Your Career would benefit from hearing your opinion and your advice on the salary issues.
• Was your last raise higher, even or lower than rate of inflation?
• Where does “salary” rate in your priority of satisfaction from your work?
• Are you paid what you think you are worth?
• What has been your experience in getting a raise?
• What advice do you have for those who want to get a raise?
• What do you think of the gap between salaries for the average careerist and the pay CEOs are taking home?
I Can Help You
I have help many people deal with the salary issue with my E-Book, HOW TO GET A RAISE And Not Shoot Yourself In The Foot (c).
I will be glad to send you a copy f*ee of charge if you will
• Recommend at least three of your friends as subscribers to my newsletter, The Career Accelerator (c), which provides access to this blog. All you have to do is send me their names and E-mail addresses to me at:
• Enclose your comments about this blog. (It’s not necessary, but it sure would be helpful to others and me.)
Again, Your Comments Are Most Welcomed.
I wish you big bucks!
Ramon Greenwood, Senior Career Counselor
Common Sense At Work