SAN ANTONIO — Are you getting paid what you’re worth? Keep reading on for the Money Smart pay raise you should be asking from your boss.
With high inflation and a worker shortage affecting the country, you might be thinking right now is a good time to ask for a pay bump. But what’s considered a reasonable raise?
KENS 5 spoke with a local financial advisor who shared that a good employer will be reviewing the data and evaluating your fair market value.
“Employer should be looking forward, forecasting and budgeting for raises, looking at cost of living, and looking at what that position really pays, generally speaking, and making those adjustments. Not all employers are doing that type of research,” said Karl Eggerss, principal and financial advisor with CAPTRUST.
While the raise percentage will depend on an individual’s experience, job responsibilities and specific industry, the standard increase has been between 3 to 5%.
“I think that comes from the fact that inflation has kind of been in that range in the last several decades as well,” said Eggerss. “In 2021, it was actually on the higher end.”
According to the Conference Board Report, businesses are expected to give an average raise of 3.9% this year. If you want a higher number, Eggerss said come prepared.
“Advocate for yourself. Employers are trying to make the company profitable. Employees are key in driving that profitability and there’s plenty of people who are going to offer those raises,” he said. “Bottom line is cost of goods for all of us, using the government’s numbers went up higher than we saw in the past.”
According to Eggerss, what should you be asking for?
“This year a 6% (raise) should be a minimum. It really should," he said. "I don’t think that’s going to happen for most employers because that’s a big bite."