In a recent survey, employees reported high levels of dissatisfaction with their salary and benefits, yet 38% of them never asked for a raise.
The main takeaway for the employees: Advocate for your worth, says Keith Spencer, career advisor at FlexJobs, the membership-only job board that conducted the survey of 3,000 workers late last year. The survey showed 41% of the respondents were not satisfied with their compensation and 43% didn't get a raise or bonus in the previous year.
"A lot of people are uncomfortable or feel like a negotiation is a daunting experience," Spencer says. "You need to advocate for yourself because no one else will if you're not willing to do it."
Employees needn't wait for a performance review either, he says. The most opportune time to seek a raise may be after one of their accomplishments benefits their company, or when their skills are suddenly in high demand due to a shift in market conditions, or when a cost-of-living adjustment is reasonable due to inflation.
Also, managers expect to negotiate with their employees over compensation, Spencer says. As an example, he points to a 2019 survey by the HR consulting firm Robert Half where 70% of managers expected to negotiate salaries with the job candidates they were hiring.
Before negotiating for a raise, employees need to arm themselves with research. "You want to start from a position of being well informed," Spencer says. "Know what your market value is; what your worth is." He suggests researching salaries for comparable positions on websites like Salary.com or Payscale.com. Employees can also build their case by keeping track and quantifying the impact of their achievements for the company, he says.
Employees also need to consider how and when to have the conversation. "You don't necessarily want to ambush your boss, so maybe request a dedicated time," Spencer says. "You don't want to have that conversation completely off the cuff."
It also helps to practice ahead of time to refine your approach, such as through negotiation role-playing with a friend, he says. "Another person, especially if they have hiring or managerial experience, can help you understand what arguments may or may not be as strong as you'd like them to be."
Approach the negotiation confidently and maintain a positive attitude, even if the answer is 'no,' he says. "Try to focus on value rather than need. Frame the conversation around your contributions rather than your personal financial need."
If the request for a raise is denied, there's always the option of seeking other benefits that the company might be more inclined to grant, especially non-financial benefits, Spencer says. The FlexJobs survey asked respondents to name their most desired benefits, and the top financial perk—company matching of 401(k) contributions—was only fourth on the list. The top request was remote work options, followed by flexible work hours and four-day workweeks.
Besides their dissatisfaction with compensation, the employees in the survey were also worried about their retirement prospects and, perhaps on a related note, were open to side hustles.
Regarding retirement, 62% of the respondents said they felt insecure about being able to retire, compared to 22% who said they felt secure. Meanwhile, 78% said they currently have a side hustle or would consider one to boost their income.
Worries about retirement make sense, based on factors such as the economic uncertainties that arose from the pandemic, market fluctuations and concerns about the impact of Baby Boomers on the future of Social Security checks, Spencer says.
"There's so much uncertainty about the future that people feel like, yes, they've been putting away money toward retirement, but will it be enough?" he says. "If I'm nervous about my future, my financial stability down the road, whether it be the next 10 to 20 years or in retirement, having that side hustle certainly makes sense."
For Spencer, one of the most surprising results from the survey was the high percentage of respondents—41%— who discuss their compensation with peers. He chalks it up to younger generations being more open about sharing their salary figures with others, along with online salary info becoming readily available and more states enacting pay transparency laws.
"That is very much out of the norm from where we were five, 10, 15 years ago to see that increase in transparency and increase in comfortability in talking about pay," he says. "It was considered impolite or taboo to be discussing your salary with your peers, especially within the same organization."
