You Like Your Career But Not Your Salary, Ask for a Raise!

March 24, 20150 Comments

If you enjoy your current entrepreneur career, working for a fast growth start up or small business, but not your salary; you may NOT need to change careers.  Ask for a raise instead!

Let’s review a few calculations:

According to Joe Hadzima, a columnist for the Boston Business Journal and lecturer at MIT’s Sloan School of Management, the salary plus benefits usually totals “in the 1.25 to 1.4 times base salary range.” Therefore, the salary plus benefits package for a $50,000/year employee could equal $62,500 to $70,000.  This could be more if you include perks, training, workplace integration and getting the new employee to 100% productivity.

The basic percentage to replace someone who leaves the team now costs approximately 110%-150% (this all depends on this industry and position).  It’s going to cost the company $84,000 to $100,000 to hire your replacement if you are currently at $40,000.

The difference is not placement agency fees, or salary difference, the biggest chunk is the training (as listed above) but also down time between your exit and the replacement.  Let’s not forget the extra work it will take the new person to get caught up because most bosses expect less than usual workflow during your two-week notice (Mentally most employees are gone right after they give notice).

Knowing this much; you have something to play with in regards to increasing your salary. 

To start, put together a plan with reasons to adequately prove a salary increase.  Some examples of things to show your employer could be:

  • How much money you saved the new (abc program) implementation.
  • Any “thank you” type of letters you receive from clients.
  • A supervisor’s memo on a “job well done.”
  • The project you were assigned came in under budget or was finished before the deadline.
  • Any special awards or recommendations.

Once you’re ready, your blueprint section of “pats on the back” should start with a copy of your offer letter for the salary increase.

You must toot your own horn, no one else will.  If you are prepared, your employer will wonder why they didn’t give you a raise sooner!

And…yes, I encourage our employees and contractors to do the same!

Your Transmogrifyer,

Sherese Duncan

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