2022 is shaping up to be the year of the raise.
Credible.com personal finance expert Dan Roccato said he believes workers have the “upper hand” when asking for a raise this year, on “Mornings with Maria” Wednesday.
“Maybe some of us haven’t looked for a job in a while, so now might be a great time to understand exactly what it is that the market is valuing this job at,” Roccato told FOX Business’ Dagen McDowell.
American workers are in line to receive one of the biggest pay raises in more than a decade, according to a Conference Board survey released last month.
Companies are reportedly setting aside an average of 3.9% of total payroll for wage increases, which Roccato says is “good news” for the average worker.
“Know [your] market value,” Roccato said. “Be open to some new responsibilities, maybe a new role in the company.”
Roccato warned against blaming inflation for a pay raise, noting it’s likely a “bad conversation” to have with your boss.
“We want to focus on our contributions to the company,” Roccato explained.
Most importantly, he pointed out, workers should have another job opportunity lined up before formally discussing a raise.
“If you’re going to have that talk, be prepared to walk, right? So you don’t want to just call the bluff,” he said. “If you’re really going to have that conversation, be prepared to bail.”
Higher inflation has shown no signs of slowing down, increasing the need for employers to give workers a bigger cost-of-living adjustment.
In this scenario of high inflation and a tight labor market, wages are expected to continue rising, with growth remaining well above 4% through 2022. Wages for new hires, and workers in blue-collar and manual services jobs, are expected to grow faster than average.
“We’re losing ground when it comes to the cost of living,” Roccato said. “It may be time to reassess: Am I in the right job? Am I in the right field? Maybe there’s something else I can and should be doing to increase my take-home pay.”
