Plus, how and when to ask for more money and promotion
Making more money doesn’t always mean you’ll be happier at work.
A new study conducted by two economists from the University of Basel and published in the Journal of Economic Behavior and Organization reveals that wage increases do not have a persistent effect on job satisfaction.
While the study found that job satisfaction was positively influenced by wage increases—particularly when an individual’s wages rose more than his or hers peers—it also points out that job satisfaction following a wage increase is only temporary, typically lasting just four years. This is largely due to the fact that people adapt to their new wage level over time and end up desiring more money.
In the short term however, the hope or expectation of a raise can make an employee happier at work, but the best long-term solution to motivate workers are regular, modest raises accompanied by promotions.
But according to a Bankrate survey of more than 1,000 people, 52% didn’t receive any kind of raise in 2017. Of those that did see a bump in salary, 30% got a raise at their current job and 10% scored a new, higher paying gig.
What’s more, women are less likely to get promoted than men, according to a survey of more than 30,000 men and women by LeanIn and McKinsey & Co. Although both sexes share an equal desire to be promoted, women are 15% less likely to see that wish come to fruition.
So when is the best time to ask for a raise and/or a promotion?
Cheryl Palmer, owner of Call to Career tells Moneyish, “Employers don’t always give raises unless they have good motivation to do so. Employees are in a position to land a promotion or a raise if they have strong, positive answers to three questions: What’s the company’s financial health, what have I contributed to the bottom line and have I increased my employability through an advanced degree or a certification?”
How much you should ask for depends on your level in the organization and whether or not you’re getting an increase because you asked for it or because you’re receiving a promotion. “According to research, the average raise is 3%, but high-performing employees may receive between 4%-5% according to Kiplinger,” says Palmer.
But, the more you ask for, the more you have to back up that you’re worth it. Documentation of your successes is key. And this guide can help you get that promotion you’re gunning for: https://moneyish.com/upgrade/stalled-in-your-career-heres-how-to-finally-move-up-the-corporate-ladder/.
You should also consider what else you might accept besides money: “Are you willing to take value in a better title, or more vacation days, or the ability to work part-time from home, or being fully vested in company stocks and bonds? Take time to seriously consider what money you need and why,” success strategist Carlota Zimmerman tells Moneyish.
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