It’s the beginning of another year and many of you are hoping for a raise this year. Ask yourself this: “How much profit did I make my employer today?” If the answer is “a lot” you have a shot at getting a raise this year. If the answer is “none,” it’s time to get your resume updated.
An employee cannot be just an expense to the company. The rule of thumb is that the efforts of any employee must generate 3-5 times what the company pays that person. Don’t expect a raise just because you’ve been with the company one more year – especially as most companies are looking for ways to eliminate employees. If your efforts are not adding profits to the company every day, you are extra baggage that they will look to discard.
Raises are given because you are worth more than what you are currently being paid. How can you make your company more successful? Do you see ways to decrease costs? Systems for increasing efficiency? Will you sell more this year? Do you help others complete their assignments when you are current on yours? Those are legitimate ways to expect a raise.
The economy doesn’t determine whether you will get a raise – your contributions to make the company more profitable will — even in a “recession.”