Barring an insolvency solution like an IVA, many people only have two choices to get out of debt. Either they spend less or they earn more.
We’ve covered ways to save money several times on this blog. But so far we haven’t talked about how you can earn more.
Fortunately, now is the perfect time for employees to get a pay rise.
The latest labour market figures show a better than expected rise in wages to 3.4% compared with a year ago. After taking inflation into account, this represents 1.4% wage growth.
Unemployment remained stable at 3.8% – a 45-year low.
When unemployment is low, labour market theory tells us that employees are in the driving seat.
With 357,000 jobs created in the last year, companies are having to pay a higher price to attract staff.
Uncertainty from employers could slow down wage growth in the future, but many people may still be in a position to increase their income.
If you haven’t had a pay rise recently then now is a good time to fight for one.
In the rest of this blog post, we’ll talk about some of the ways that you can boost your pay packet.
Do your research
Do you know how much you’re worth? Don’t worry, we know it’s a difficult question to answer.
You can get a sense of whether you are undervalued by your company by asking colleagues how much they’re paid, checking other job adverts or looking at online salary checkers.
This kind of research is essential before you speak to your manager so you can benchmark your value against similar employees.
Preparation is everything, you might want to spend a few weeks or even a few months laying the groundwork for your pay rise pitch.
Set a date when you want to ask for a raise taking care to book a meeting on a day when your manager won’t be busy. You want them to feel relaxed and comfortable when you talk about your pay.
You might also want to start dressing for the job you want. Impressions matter more than you think in a situation like this. But there’s no point in just dressing up on the day of your meeting. This needs to be a consistent effort on your part.
Lay out your case
During your meeting, you need to be clear about the value that you add for your company.
Think about examples of things you have done to help grow the company and times when you have gone beyond the boundaries of your job description.
You don’t want to come off as hostile, so avoid saying things like ‘I think I’m underpaid’. Instead you want to remain calm and, when the time is right, stay silent.
Find a new job
For some employees, the best chance of getting a pay rise might be switching jobs.
If you can’t convince your boss that you deserve a pay rise and you don’t want to wait for your compensation package to catch up with your value, you might want to dip a toe into the job market.
We already know that some companies are willing to pay a higher rate to attract the best talent. And you could be their perfect candidate.
The rate of job creation is starting to slow, but there are still opportunities out there. And if you stay with your current employer while you start your job search, then you’ve got little to lose.
Are you struggling with serious debt? Do you feel like there is no way you can ever pay off your debt? You still have options open to you. Speak to a member of our team today about our range of personal insolvency solutions. Call: 0800 611 8888.