You May Get a Raise in 2022
In a strengthening labor market, businesses are paying more to attract and retain employees.
As they recover from the economic fallout from the pandemic and seek to attract and retain employees, 97% of large companies are planning to boost salaries. The average raise is expected to be 3% next year, up from 2.7% in 2021, according to a survey by Willis Towers Watson, a human resources consulting company.
Executives, management and professional employees should expect to see an average salary increase of 3%, and the average increase for a production and manual labor employee is expected to be 2.8%. Pay hikes will also vary by industry. While salary increases in the oil and gas industry are expected to be significantly lower next year, increases will be higher in media, health care and financial services. Employees at high-tech, pharmaceutical, manufacturing and semiconductor companies will see the largest average increase, Willis Towers Watson projects.
As the labor market tightens, the actual raises may be even higher than the projected amount, says Adrienne Altman, managing director of Willis Towers Watson. Nearly one-third of companies are expected to increase their projections, the survey found.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Negotiate for a bigger raise. The increase in pay raises comes at a time when many workers believe they’re not paid enough. More than three-fourths of workers think they’re underpaid, according to a survey by Business.org, a website targeted at small businesses.
If you fall into that category, there are several strategies that could help you negotiate for a bigger paycheck. Consider asking your employer for a cost-of-living adjustment to your salary, says Andres Lares, managing partner of Shapiro Negotiations, a company that helps clients negotiate business transactions. That’s an effective tactic because it points to an objective standard, Lares says. You’ll also want to consider whether the company has faced economic difficulties, such as a drop in revenues.
Being flexible may also help. If you’re willing to take a bonus instead of a salary increase, let your employer know that’s an option. And while it’s important to have a number in mind when you make your request, you may want to avoid mentioning a precise figure until you’ve talked about your performance, Lares says.
Emma Patch joined Kiplinger in 2020. She previously interned for Kiplinger's Retirement Report and before that, for a boutique investment firm in New York City. She served as editor-at-large and features editor for Middlebury College's student newspaper, The Campus. She specializes in travel, student debt and a number of other personal finance topics. Born in London, Emma grew up in Connecticut and now lives in Washington, D.C.
-
It’s Tax Day: Is the Post Office Open Late?
Tax Filing Tax Day is here and some people need to mail their federal income tax returns.
By Kelley R. Taylor Published
-
Need to Build an Emergency Fund? Seven Steps to Get There
Having a safety net can mean peace of mind on top of being able to maintain your lifestyle if a financial emergency strikes.
By Justin Stivers, Esq. Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Best Foreclosure Sites for Finding Properties
Making Your Money Last Wondering how to find foreclosed homes for sale for your next residence or to flip for a profit? These websites will guide you to foreclosures and real estate-owned properties to buy.
By Bob Niedt Last updated
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published