You’re Probably Underpaid: How to Get a Raise During a Bull Market

Do you have too much money? Probably not if you’re ready for this article. Would you like to have more? Great!

During an up economy, the rules are a little different than in a recession. After all, a rising tide lifts all boats. There are still a few things to watch out for though before you burst into your boss’s office demanding a raise. Odds are if it’s a hot market you’re going to have a much easier time. If you’ve been with your company for some time there has likely been some internal wage compression relative to the market. Outside wages have probably increased at a greater rate than your own. Is it unfair? Yes, probably a little. But payroll is often the largest expense on a company’s ledger so it’s a common practice at larger organizations to have internal rate tables to control wage growth.

Read on to find out exactly how to wage your salary increase campaign. See what I did there? 🙂

What are the environmental factors for you and the company you work for?

How is your industry doing?

Industries tend to have an ebb and flow with demands for certain employee depending on which products or services are selling at the moment, and internal strategy roadmaps. You’ll often find all of sudden industry X has a massive demand for employee Y for 2-3 years then it changes to employee type Z for 2-3 years when the focus shifts.

More specifically, how is your company doing?

If the company is having a good year and you’re partly responsible for it you’re in a great position to negotiate a salary increase. If the company is not doing so well and is on the verge of layouts, slow your roll, no one is likely getting anything more than small “please don’t leave” cost-of-living increases. If the company is not doing so well and you don’t see a future for yourself there than your best bet is to look for your salary increase at a new company. But the good news is in a hot economy there’s a shortage of high-quality workers and recruiters are hungry for hires.

How was your individual performance over the last 6-months?

Now if the time to be brutally honest with yourself. If you absolutely killed it this year, congratulations! You’re in a strong negotiating place. If not it doesn’t necessarily mean game over. There are still a few quarters left where the economy is expected to expand. Use this time to improve your contribution to your organization and document your achievements to start building a case why you should get a salary increase. I’ll show you how-to below.