If you’re feeling a financial pinch, you’re not alone. Arecent Bankrate survey found that for the second year in a row, US citizens say they need to make in excess of $186,000 a year to live comfortably.
That is more than double the average full-time worker’s salary ($79,000), and with only 6% of Americans actually earning the higher figure or above, a disconnect is emerging.
Workers are suffering on all fronts, with Bankrate noting prices have risen almost 21% since the pandemic. Essentially, you’re paying an extra $210 for $1,000 you used to spend on typical items like food, housing, transport, and healthcare, according to the Bureau of Labor Statistics (BLS).
Five jobs to discover this week
- Software Engineer, .NET, Schneider Electric, Dallas
- Director, AI Strategy for Biologics, Takeda Pharmaceutical, Boston
- IaC DevOps Lead, Maximus, Anne Arundel County, MD
- Principal Engineer DevOps – DevSecOps Engineer (24-435), Northrop Grumman, Colorado Springs
- Senior Software Engineer, Raytheon, Downey
People now need a six-figure salary to afford a typical home in almost half of US states, and college tuition prices have rocketed too, with 31% of people saying the government hasn’t done enough to provide financial assistance to borrowers, such as applying policies such as deferment or debt forgiveness.
Given the pressures on the average worker, it’s not surprising if you’re thinking about ways to make more money in 2025. For 36% of US adults, a side hustle is the answer, and they use this income to pay for regular living expenses, like rent and groceries.
Additionally, 32% of those doing extra work outside their main role think they will always need to do this to make ends meet.
Another solution can be to look for a new job. A study found that the average salary increase for job switchers is 14.8%. By contrast, if you stay in a job for more than two years, you tend to make less than those who go elsewhere. That’s because you’ll be subject to smaller annual increases from your employer, which may not keep up with inflation.
If you’re happy in your role and you don’t want to make a move, how can you make a case to get paid more in 2025? Right now is a good time to start. It’s still early in the fiscal year, meaning that budget may be available.
Additionally, as companies prepare for end of year reviews, it’s a natural time to talk to your boss about your compensation.
Here’s how to go about it.
Benchmark your salary
Whether you’re being underpaid for the job you do, or seeking an increment based on your performance, you’ll need to take the temperature of the jobs market first.
One way is to search for salary survey data, with a number of companies offering compensation information. Some of the top providers are PayScale, SalaryCube, Radford-Aon, and Mercer.
You can also check company review websites like Glassdoor to benchmark salaries in your industry. With a number of US states now subject to salary transparency, this means that it is easier to find comparative salaries on jobs websites like Indeed and LinkedIn.
Lastly, you can also use your network, asking your peers if they’d be willing to chat to you about their compensation.
Build a case
If you haven’t had a raise in a couple of years, and you’ve completed some good projects and delivered great results in the meantime, then the first thing to do is start putting together a list detailing your key achievements.
Highlight specific projects where you added value, improved processes, or exceeded expectations. This is tangible evidence that will support your case for a raise.
Take the temperature
You might be chomping at the bit to just simply ask for more money. But you should hold off until you’ve done a bit of preparation.
Firstly, look at the timing of your request. Is the company under financial strain or have there been layoffs recently? If the answer is yes, this may not the best time to ask for more money, and you’d be wise to leave your request until you have a performance review. At this point, the issue of a raise can be brought up more naturallly.
What not to do
Don’t surprise your boss with your request. Instead, ask for a meeting and let your manager know in advance that you’d like to discuss your salary.
Once they’ve agreed on a meeting, schedule it, and include a clear agenda so you can help keep the conversation focused and professional. Outline the key points you want to discuss, including your achievements and market salary information, for example.
Lastly, prepare yourself. Money worries are stressful, and feeling underappreciated doesn’t feel good either. But, you need to ensure that you approach any conversation about compensation politely and professionally.
And regardless of the outcome, don’t forget to thank your manager for their time and consideration.
