Pay Bumps Expected To Grow In Near Future

As the economy continues to build momentum, average salaries are expected to increase. If it appears a raise might be in your future, but you still need a little help covering monthly expenses because of an unexpected bill, you may be able to utilize lenders in the meantime to keep your financial footing.

According to a survey conducted by Aon, more than 1,300 companies of various sizes could give their employees raises averaging 2.8 percent by the end of 2021. This was a slight increase from 2022 bad credit is ok, when employers averaged pay bumps of 2.7 percent. Salaries have now increased every year since 2019.

However, despite the promising gain, pay levels are not expected to reach the growth rate experienced prior to the recession for quite some time.

“It is unlikely that salary increases will reach pre-recession levels of 4.0 percent or higher any time soon,” said Ken Abosch, compensation marketing, strategy and development leader at Aon Hewitt. “Companies are more impacted by the global economy than ever before, as a result organizations continue to be conservative with their spending, but we anticipate that attitude will remain even after the economy rights itself – holding down spending on base pay is the new normal.”

Meanwhile, even if certain employees don’t receive base pay raises in the latter half of 2020, there could be opportunities for performance-based awards. However, specific perks vary from company-to-company and may not always strictly be financial.

Further pay increases are expected in 2022, the report said. Specifically, experts from the company anticipate pay bumps to break 3 percent next year.

Although the economy has made significant gains, its performance is still well below peak levels. This fact could pose a major obstacle when pursuing a pay raise, but with the right approach you may be able to convince your managers you are deserving.

Asking For A Raise During Uncertain Economic Times

Before you even attempt to talk to your employer about a raise, make sure you do your homework, recommends CNN contributor Mark Tutton.

This involves comparing your salary to your colleagues as well as industry standards. Once you have this knowledge you will be able to formulate a realistic request that won’t make your superior think you’re crazy.

Justify The Raise

To make it clear you deserve a pay raise, you need to show your boss you are exceeding job expectations. This includes bringing in business and taking on additional responsibility.

However, working harder may not be the only way to prove this. Instead, you should try to work “smarter,” says the news source. Do this by working toward specific goals of the management team. Pay raises and bonuses often go toward the employees who impact the bottom line, so strive to make a difference.

Create A Win-Win Situation

When you finally approach your employers about a pay raise, frame the argument as a win-win situation. You could potentially do this by telling your superior your pay goal and asking them what it will take to get there.

This could come in the form of taking on more responsibilities or fulfilling specific tasks and hitting marks above the bar. No matter the situation, you can almost always work out a deal that will justify the extra money by creating an added incentive.

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