Why Getting A Pay Raise Is A Joke | #grindreel

all right so TL DR for this video if you want more money don't ask for a raise at your job just switch jobs so a lot of us think just because we get a job that will get a raise every year in reality that's just not true a lot of jobs don't even offer a raise every year instead they'll offer more amenities to you so instead of giving you more money they'll just give you more time off or instead of giving you more money they'll just give you more flexibility in your schedules so a lot of these companies aren't even offering raises anymore and if you're not getting a raise every year you are literally losing money due to inflation US inflation is about 2% on average the last month in January of 2019 it was 2.3 percent the average salary raises that people get in the United States is about 3.1 percent so your total raise is really 1.1 percent now there are some industries that offer a higher raise than others so in software I've seen anywhere between 7 to 10% raises but that's still nothing compared to what you could get by just switching companies working and climbing up a corporate ladder is not the way to make more money unless you really intend on somehow making it to CEO or CFO or CTO or whatever it is that you're trying to do you don't make big gains in money by climbing the ladder you do that by just switching companies now here's the thing you might be able to get 6 7 8 maybe even 10 percent of a salary raise working at a job but you're not going to get that every single year unless you're working at one of the huge companies that can afford to do that a lot of companies have been reducing what they call their variable pay budget which is this area of their budget that they use to give people pay increases every single year and companies are reducing this budget smaller and smaller and smaller and again they're instead just offering you more amenities let's say you get a 10% raise but that's over the course of three years and every time a year goes by that's 2% inflation and you're actually only getting a 4% raise you worked really hard for those 3 years but it's not as much as you would think switching jobs you could get anywhere from 15 to 20 to 25 to 35 even double your salary just by switching jobs in fact I've done this let me walk you through the numbers my very first program was $18 an hour I worked there for about eight months and then I got a full time PHP job I went from $18 an hour to $50,000 a year now if you do the math it which is when you double the hourly rate and add 4% that would be your salary I did that and going from $18 an hour to $50,000 a year is a thirty five point five percent salary increase just by switching jobs after staying somewhere for eight months I did it again at my next job I went from 50k to $65,000 that's a thirty percent increase in salary now if I had stayed there and worked my way up I maybe would have gotten 53 K 55 k 58 K and then eventually maybe 60 K and again I worked there for just about a year so that's thirty five percent salary increase in one year thirty percent salary increase after that and then I went from 65 K to 75 K which again is a fifteen point five percent increase now here's the thing with that I understand it's it's you can't always job hop because then you're just gonna be seen as a job hopper and if no one's gonna hire you because they think that you're just gonna leave as soon as they're more there's more money involved and I I get that so there's like a couple questions you should ask yourself and I want to talk about how long you should stay at each job before you bounce if you want more money so when should you switch jobs when do you know it's time when do you think that we've been there long enough to where you can get away with going for a new job without being looked at in a negative light so we all know that the shorter you've been there the worse it looks if you want to switch jobs it's just it just doesn't it's not gonna look good on your on your resume so what I do and I'm not saying that you guys have to do this but what I do is if I work a job that I absolutely hate and I join it and I realize it's not for me and I'm like holy crap I got to get out of here because this has happened to me before that job just never existed on my resume the job before that did now if it's your first job it's even more difficult so what you could do is you could take your start date and just move that out to make it look like you've been there six months let me explain so I can give you some context I accepted a job offer for a company and I worked there literally less than a day it was a remote job and if you backed away from your computer you had to type a message in slack and you had to say stepping away going to the bathroom stepping away taking some cold medicine stepping away I need to do this going to lay down on the couch to do work so moving my computer won't be able to respond for 35 second it was really micromanaging and I was like there's no way I can work a remote job that is this micromanage me like why do they even offer remote that job never existed on my resume whatsoever now if it was your first job and you absolutely hate it and you're stuck and you feel like well I need this experience before I can leave what I absolutely hate it then maybe take that start date and just bump it forward a little bit I'm not saying that you got to do that but that's probably what I would do just because my peace of mind is really important to me and I'm not just gonna work a job that I hate every day I'm gonna figure out a way out of them a break some rules so that three to six months mark is probably the most tricky part of switching a job I've switched jobs at around eight months before but I think six months six months is probably the the borderline safe area that you could job hop if you can manage to make your job to one year you don't have anything to worry about you can safely drop off you can safely jump to another company and when they say why do you why are you looking to switch you can just say I'm looking for more responsibility what about if you don't want to switch jobs because you don't want more money well there are a lot of other benefits to switching a job you don't stagnate you don't stagnate in your skills you expand your skill set and you're forced to learn new people's processes and workflows and I feel man that's just corporate jargon right there but you're forced to learn how other companies do things so that when you switch jobs again what you should then you'll be able to take all of those different workflows that you've experienced them condense them down and maybe suggest improvements to your new workplace that you're going to now you also get to expand your network you get to know more people and you know as long as you don't burn the bridge if that's important to you you might bring back some passion and work you might enjoy what you're doing again maybe what you got hired for was fun at first and then they totally changed your job and you just hated what you're doing I've talked about this before a few times about how to negotiate a salary but the number one thing that you want to remember when she ating a salary is to never say a number first do not give the number first let me walk you through a scenario of why giving your number first will hurt you you can inadvertently undercut yourself let's say you go to a job and they're ready to pay you $90,000 and they say hey what are you thinking in terms of salary and you say $45,000 they just got the biggest deal in history on you or even worse they might think that this is what this guy values his skills at you must not know that much see much not he must not know as much as we think he does and you just make yourself look bad when you have to discuss numbers just say well I was curious what your budget is for this position as I'm wondering if we're on the same page when it comes to compensation if you give your number first you hand them the playbook and this is the this is like the the game part this is yes corporate is a game in general but this is the real big game part it takes a lot of presence of mind I know when you're in the interview and you really want that job and especially when you need the money if you don't have a job you don't want to mess it up right you just need money so you're more willing to just kind of go with the flow and I know it can be nerve-racking especially when you're so used to just you know thank you thank you thank you so much for the opportunity I really appreciate all this but you got to put your foot down here if you've ever wondered why some of your co-workers and some of your colleagues that have lower tier jobs than you get paid the same amount if not more money than you it's because they did that it's because during the negotiation during that really awkward make-or-break that what it feels like moment they said well I was wondering what yours is what's your number and then they went back and forth and they bartered and they fought for it and that's why that's just that's your only time that's when you make that big salary game because it's not gonna happen again you're not gonna go from 50 to 75 at the job you're not gonna go from 75 to 95 at the job you're getting you're gonna go back to getting those incremental salary raises so that's your time that's your time to make big money moves there was a lady at my last job she worked there for like ten years I worked there for about a year and I was getting paid more money than her and it's kind of this dumb kind of good old boys mentality that you don't tell people what you make and that's kind of forced on you by corporate because they don't want people internally to fight and be like well why does he get more money I've been here longer well the truth is they fought for it they negotiated better than you and that's just it is what it is they convinced them and you didn't and you settled and then you never fought for your raise that you deserved over the past ten years so she had been there for ten years I was making more money than her right off the bat she was more experienced than me she had been part of the company from the ground up she went and she tattled holds tattletale she told on me basically and then they brought me in they're like Josh why are you telling people your salary and I was like because I don't think there's anything to hide I negotiated better and that's just the reality of it and if you think you undercut her don't get mad at me you know you should feel bad because she found out that you're undercutting her and just pay her more money like you should but this is how companies play that game man she was pissed she's like what but you say well I don't even make that much Josh like I don't know what to tell you she's like okay well I'm talking to management and then I realize I kind of messed up and at the same time I didn't really care let's say for just a second that for some reason they put you into a position where they won't give their numbers they just refuse to say it and they just keep flipping on you no matter what you do there are a couple options you can say well I'm just not really sure it's more about what I'm doing and who I'm working with that matters to me and then you flip it back on them and say what were you thinking or you can give a number and you can do the old poker face and you can Bluff and if you give a number you better give 15 10 K at least more than you are making because they will undercut you the only time I have not been undercut when asking for a salary is for a job that was willing to pay me a lot more money and the reason I figured that out was because they gave me my requests really really easily and I was like hmm this is just a little bit more than I wanted and they just handed it off to me which means they were willing to pay me a lot more money because that was too easy if it's too easy you you know what you should what's going on you should raise an eyebrow a little bit ordinarily they will undercut you they will give you five K less than what you asked for and you will have to fight for that 5k back and then finally you will settle it's like going into a pawn shop you should go into a pawn shop and have five different numbers to kind of fall back on Josh what about if they call your previous employer and they ask him and they say well what was his last salary okay in some states this is actually illegal if they bring that up later down the line and they said well you said you got paid sixty-five thousand a year and your last company said that you were getting paid fifty five thousand a year well just because they valued me at that number doesn't mean that's what I'm worth right now there were multiple factors at play here such as them not having the budget to pay me I think it's a little bit irrelevant I think you need context for that and I think I'm actually worth $65,000 yeah I said that I got paid more than what I did but this is salary negotiations and I'm sure you know how that goes I'm sure you can see it from my side we're both playing the game here now are you willing to meet me at this salary or not right like that takes a lot of guts to say they will do a couple things know either say okay well we don't believe in lying and you know whatever we think that's really unethical and they'll point you at the door and they'll tell you to leave or you know they might not their head and be like I think that's reasonable I think that's fair we were just curious about why you said that and they gave you the job offer and you're good to go anyways that's this video asking for a raise just gonna get you micro increments that barely compete with inflation versus job hopping which is gonna get you that big money those big money raises try to keep it to a minimum though you don't want to be seen as a job hopper but again it's kind of up to you and up to what you want I hope this video has been helpful if it has click subscribe click like leave a comment down below I have some resumes and cover letters down there if you'd like to book a one-on-one with me about how to open a business freelance build a brand whatever it is we can talk about it I'd appreciate it if you check those links out and I will see you guys in the next one [Music]

Channel: Joshua Fluke

Views: 352,811

Rating: 4.9154301 out of 5

Keywords: joshua fluke, code bootcamp, javascript, how to code, web development, brand, developer interview, developer jobs, corporate cringe, divorce, story i dont talk about, entrepreneurship, digital brand, dont ask for a raise, a pay raise is a joke

Id: m1tLgewxmz4

Length: 12min 53sec (773 seconds)

Published: Mon Jan 27 2020