- A hiring slowdown has made it harder for workers to change jobs.
- Job-switching helped many Americans increase their pay in recent years.
- Asking for a raise could help some workers land a pay bump if job-switching isn’t available.
Job-switching used to be a solid strategy for landing a pay bump. Now, it could be time to go back to basics and ask for a raise.
Cory Stahle, an economist at the Indeed Hiring Lab, previously told Business Insider that wage growth tends to be higher for workers who switch jobs than for those who stay at their employers. However, finding a new job may not be so easy: US businesses are hiring at nearly the lowest rate in the past decade, excluding a two-month pandemic-related dip, per data from the US Bureau of Labor Statistics.
For workers who want to boost their pay before the hiring landscape improves, the next tactic is asking for a raise, researchers of organizational behavior and career development told BI. They shared the best ways workers can advocate for a raise — and what they should do if their requests are denied.
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Be mindful of when and how you ask for a raise
Workers shouldn’t be afraid to request a raise, the researchers said.
“I would want to push people out of this mentality that asking for a raise is somehow bad or wrong,” Jennifer Tosti-Kharas, a professor of organizational behavior at Babson College, told BI. She added that working hard and hoping you’ll eventually be rewarded with a pay increase — but not strongly advocating for one — is a risky plan because some companies might be happy to have a high-performing employee at a modest pay level.
However, when a worker asks for a raise can be crucial to getting one. Harshal Varpe, a career trends expert at Indeed, told BI that the best times are typically when the company performs a salary review or after a big accomplishment.
Tosti-Kharas said that workers who’ve been asked to take on extra work following layoffs, resignations, or retirements should also consider asking for a pay bump.
“The worst case scenario is that you suddenly take on double the work for no additional title, no additional compensation,” she said.
However, Tosti-Kharas said that if a worker believes they have a strong case for a raise, they don’t necessarily need to wait for the perfect moment to make the request.
Ask for the right number — and be able to back it up
Both Tosti-Kharas and Varpe said it’s important for workers to prepare for their conversations with their managers.
Varpe said researching industry pay standards, having a specific pay figure or range in mind, and being prepared to present your accomplishments — using data if possible — could help workers secure a pay bump.
Tosti-Kharas said having insight into how much your coworkers earn could also be helpful — particularly if they’re earning more and are at a similar experience level. However, she recommended not citing a specific employee’s name or pay and instead speaking more generally about trends in coworkers’ pay.
If coworker pay information isn’t available or helpful, Tosti-Kharas said employees could point to the compensation levels for comparable roles posted on external job platforms like LinkedIn and Indeed. They could also ask whether there is a salary range for their current role that might be placing a ceiling on their pay.
If an employer denies a raise request, both career researchers said workers should ask for specific feedback about how they can achieve a different outcome in the future.
“A good manager should not keep this secret,” she said. “They should be happy to tell you because it motivates you.”
Explore opportunities for career advancement
While a raise might help increase your pay in the short term, how high you rise in the ranks could determine your long-term pay trajectory.
During pay conversations with their managers, it could be helpful for workers to signal their ambition for higher-level roles by talking about their desire to take on new challenges and responsibilities, Tosti-Kharas said.
Varpe said that upskilling — or developing new skills — could also increase a worker’s chances of a future pay bump. Varpe said high-demand skills related to generative AI, data analysis, and project management could be worth investing in, perhaps by taking an online course.
“Think of it as leveling up in a video game — each new skill is like an extra life,” he said.
If all else fails, Varpe said workers could also try asking for non-monetary perks like additional vacation days or remote work flexibility.
“Employers may be reluctant to increase your salary but be willing to offer you other benefits,” he said.
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