Money It's an uncomfortable subject, particularly in office settings.
But while we’re conditioned let's not discuss this For fear of coming across as impolite, we're urged to recognize our value and assertively ask for raises.
Sadly, numerous workers in the UK lack a consistent grasp of this concept. What constitutes a reasonable wage? , and they frequently remain unaware of their possible earnings bracket. As such, when requesting higher wages, these employees might be clueless about the appropriate amount to request.
Moreover, since 53% of British people not knowing how much their coworkers earn (especially those in senior roles), how can anyone determine what their salary should be, in the first place?
To clarify things once and for all, Axofa I spoke with financial specialist Pernia Rogers, who founded Your Finance Travel Buddy , and Nisha Prakash, a financial specialist and professor of Financial Management at the University of East London.
Word of warning: Pernia says that even if you’ve been at a company for years, loyalty doesn’t always lead to bigger pay rises.
Nisha points out as well that salary increases and promotions vary according to the sector. For example, tech and finance sector jobs offer faster salary growth than public sector roles, which she estimates at around 2% to 4% per year.
'Some firms provide cost-of-living adjustments to ensure that their employees' quality of life isn’t affected by increasing expenses,' she explains.
After one year
‘In the UK, salary increases "Tenure regulations aren’t governed by law but are shaped by industry norms, corporate policies, and personal performance," clarifies Nisha.
That being said, general industry benchmarks can assist in setting achievable expectations. As per the job site Indeed, the typical yearly salary increment for seasoned employees usually ranges from 3% to 5%.
'Any increase over 10% is usually seen as a significant rise, often associated with promotions or career transitions,' Nisha notes.
In terms of Your initial year in work Pernia advises against expecting significant progress just yet, as you're probably still settling into the organization and becoming familiar with your position.
'Salary increments are typically modest and generally align with inflation rates or company performance,' she explains, remembering that her initial raise in a graduate program amounted to only 1.75%.
After two years
Next year, according to Nisha, the increase will 'follow a bell curve relative to years of experience.'
When you're assigned additional responsibilities, you ought to receive higher compensation, though this isn't guaranteed. In such cases, Pernia suggests negotiating—particularly when newcomers are getting paid more for similar roles.
Regarding specific figures, Nisha discloses that newcomers usually receive raises between 3% and 10%. In contrast, those with two to five years under their belt might anticipate increments ranging from 5% to 20%, contingent upon prevailing economic conditions and personal achievements.
After three years
Around the age of three years, Pernia alerts you about the possibility of receiving lower pay.
'Companies typically provide lower yearly raises compared to what you might receive when switching jobs,' she clarifies. ' numerous individuals who switch jobs After about two to three years, they saw an increase of 15% to 25%, whereas internal raises were only around 2% to 5%. When I changed jobs after 3.5 years, my salary went up by 64%.”
To determine whether you've fallen victim to the 'loyalty penalty,' Pernia suggests: "Your salary ought to increase by 15% to 30% from what it was initially, following promotions or expanded responsibilities." If this hasn’t happened, you may lag behind industry standards.
Next, measure your role against external standards. negotiate , or get ready to relocate.
After five years
Following five years, continuing to stay only makes sense if you receive adequate reward.
Even though Nisha indicates that the raise percentage decreases after five years of service—unless you get a promotion or switch roles within the organization—Pernia believes you ought to see an improvement of at least 30%, particularly if you've advanced in your career.
"If your income isn't keeping up with advancements in your career, rising prices, or industry standards, you could be missing out monetarily," she explains.
Nevertheless, as we understand, it doesn’t come in a one-size-fits-all package, and what is practical can differ. depending on your career .
Although her biggest salary increase occurred when she obtained her Chartered Accountant certification, Pernia emphasises that this isn't true for everyone. career path Has such jumps, hence it's crucial to measure them against your field and market.
Nevertheless, do not hesitate to negotiate for what you believe you deserve or consider exploring different positions if you don't feel appreciated. Always keep in mind that 'you are under no obligation to accept an offer that does not align with your requirements.'
How long do you anticipate having to wait for a promotion?
As mentioned earlier, there isn’t a single obvious solution.
The timing of promotions varies based on the sector, company, and employee performance. However, regarding expectations, Nisha suggests aiming to progress from an entry-level position to a mid-level role within one to three years. She elaborates, 'This period often sees the quickest advancement, generally linked with adhering to deadlines and acquiring essential competencies.'
For promotions from mid-level to senior positions, the typical timeframe is about two to five years, during which 'performance, leadership qualities, and specialized knowledge are crucial.'
Following this, moving into management from a senior position typically requires between three to seven years, primarily due to essential elements such as building networks, increasing visibility, and demonstrating the ability to make significant impacts. For attaining higher positions within senior management—like becoming a director—you should anticipate needing anywhere from five to more than ten years of experience. This progression hinges mainly on your capacity to generate lasting effects and achieve notable business outcomes.
Once more, this measure might differ between sectors.
'For example, promotions occur at a quicker pace in startups Nisha mentions that compared to corporations, where the general guideline is that if you haven't received a promotion within your first three years despite performing well, it might be necessary to inquire about opportunities for advancement, discuss potential changes, or consider moving on.
Simply bringing up the topic ensures that management will have to offer you a defined career trajectory or growth strategy, making it worthwhile to try.
What's the most effective method to get promoted?
Nisha says that achieving a promotion calls for more than just hard work.
She clarifies: "It's essential to always work intelligently, stay noticeable, and sync with the requirements of the business."
'Therefore, it is crucial to ask your supervisor for a clear plan outlining the necessary skills, attitudes, behaviors, and accomplishments needed to advance.'
To enhance your prospects, she suggests 'making your manager's job easier' — however, don't hesitate to highlight your accomplishments or 'let your work speak for itself'.
Nisha’s parting advice? “Don’t wait indefinitely — if you’ve been playing at the next level, speak up.”
Have a tale you'd like to tell?
Contact us via email AxofaLifestyleTeam@Axofa.co.uk .
Subscribe to Axofa's The Slice newsletter for insights into what’s happening in London, featuring reliable reviews, promotions, and contests.