While it’s easy to assume that you know everything there is to know about raises once you’ve been working a while, that may not actually be true. Certain myths about salary raises are surprisingly pervasive and incredibly believable. As a result, there’s a chance you’re relying on inaccurate information, and that could be holding you back. If you’re wondering if you are genuinely well-informed about pay increases, here are seven myths about salary raises and the truth behind the situation.
1. If You’re Doing a Great Job, You Don’t Need to Ask for a Raise
Many professionals – particularly younger ones – assume that they’ll get offered a raise if they earn one. While some companies may certainly act proactively when it comes to pay increases, the vast majority won’t.
In many cases, the company would rather keep you on the payroll for as little money as possible. If they believe you’re satisfied where you are, they likely won’t move to offer you more than you’re earning today, as it doesn’t seem necessary to keep you engaged or ensure retention.
Since that applies more often than not, it’s best to assume that raises are something you’ll need to pursue throughout your career. By adopting that mindset early, you may seize more opportunities, too, allowing you to earn far more over the course of your career.
2. Asking for a Raise Makes You Look Financially Driven or Pushy
Professionals often hear employers and managers complain about employees or candidates who are in their roles solely for the money. It makes it seem like wanting to earn a solid paycheck in exchange for your time and energy is something that should be vilified. In reality, that isn’t’ the case, particularly if you’re clearly enthusiastic about handling your duties and ensuring solid output quality.
Asking for a raise doesn’t make you seem financially driven or pushy in most cases. If you make the request and an accusation is made, it’s best to treat that as a red flag. In the worst-case scenario, stating that’s the case is effectively gaslighting you into believing you’re somehow wrong or out of line, often with the hope that you’ll drop it. However, even if it isn’t that extreme, it could show that the company isn’t able to meet your needs long-term, particularly if your request was reasonable.
But reasonableness is one of the keys. If you’re asking about raises every month, even though you’ve been given clear insights and justifiable reasons regarding why you aren’t eligible, then that changes the equation. Comparatively, if you’ve been exceeding expectations, getting glowing reviews, taken on more responsibilities, and have asked about a pay raise in years, you’re likely not out of line.
3. Talking to Your Coworkers About Raises (or Salaries) Isn’t Allowed
Employers want professionals to believe that talking to their colleagues about raises (or salaries) is against the rules. However, there’s no law barring you from talking to other employees about pay. In fact, some companies spread this idea because it allows some workers to unknowingly be underpaid, as they don’t realize their colleagues are earning far more.
While you don’t want to pressure your coworkers into sharing information about their raises, salaries, or bonuses they aren’t comfortable discussing, don’t treat the topic as if it’s inherently off-limits. By being willing to talk about it and sharing some details yourself, you may end up in a conversation that reveals someone is being treated unfairly. Then, it’s possible to take action in a way that wouldn’t have been possible if those discussions didn’t take place.
4. A Higher Salary Will Make a Bad Job Worth It
When you’re dissatisfied with your job, it’s easy to assume that more pay would suddenly make you happy. While that could be true if your only issue is a paycheck that lags behind local and industry norms, it won’t fix duties you dislike, a manager you don’t work well with, or a company culture that’s a poor fit.
Ultimately, if you’re in a bad job – or a bad-for-you job – a raise won’t fix what’s broken. It may make the situation more tolerable for a short period, but once the shine of the salary increase wears off, you’re back at square one.
While it’s okay to accept a raise if you aren’t in a role you like, it’s also wise to seek out other opportunities. In the end, the only real solution to a bad job is to get a better position, so start looking for new options that will let you make your exit.
5. Your Raise Is Offset by Moving to a Higher Tax Bracket
When you get a raise, it is possible that your total income will shift into a higher tax bracket. However, that doesn’t mean your new tax situation offsets your pay increase.
The United States uses a progressive approach to taxes. That means you aren’t taxed at the same rate across all of your earnings. Instead, the lower portions remain at the same rate; it’s only the amount above the cutoff for the new bracket that’s taxed at a higher rate. As a result, you’ll still take home more in your check every pay period.
Usually, the only time a pay increase results in a financial loss is if you previously qualified for certain benefits – typically social services or specific tax credits – and now don’t. Depending on the benefit, you could still come out financially ahead. However, there are instances where you could end up behind.
6. A Raise Means More Responsibilities
There are certainly times when a raise comes along with more responsibilities. However, that isn’t technically a requirement. Similarly, a raise doesn’t have to be in conjunction with a promotion.
Instead, pay increases can stand alone, serving as rewards for longevity, diligence, reliability, or strong performances. Additionally, a company may use them to offset the impacts of cost-of-living increases in the area or as part of a general retention strategy.
If you’re hoping to expand your duties, then it’s wise to mention that specifically during a meeting with your manager. That lets them know that you’re looking for new challenges or opportunities to grow and advance, which may increase your odds of being selected for exciting projects, new tasks, and more.
7. Asking for a Raise Is Hard
Asking for a raise isn’t inherently difficult as long as you properly prepare. Before you bring up the topic, spend a little time building a solid case. Look for examples of recent achievements, particularly ones where you can show a clear financial benefit for the company. Additionally, make sure you aren’t failing to meet expectations in any area. As even one shortcoming in that regard could be enough for your manager to say “no.”
Then, schedule a meeting with your manager, letting them know you want to talk about your career and future with the company. Present all of your examples, and let them know you feel your efforts are worthy of a raise.
How you proceed after that may depend on their response. There’s a chance they’ll agree and either offer an amount or let you know they need time to come up with a proper amount. If they offer you an amount, it’s time to negotiate. If not, you can do additional research while you await the offer.
When They Can’t Offer A Raise
In some cases, they agree you are worthy but can’t offer a raise, a point they usually follow up with a reason. In that case, you’ll need to decide whether to remain or seek out opportunities elsewhere.
If they disagree with you, ask what you can do to qualify. If they work with you to find a path toward a raise, then that could make staying worthwhile. However, if they don’t, you may want to start planning your exit.
Do you know of any other myths about salary raises that people often believe? Did you think one of the myths above was true and is it surprising that it isn’t? Do you think salary raise myths are harmful? Share your thoughts in the comments below.
Read More:
- 10 Signs That It Is Time to Renegotiate Your Salary
- Want Consistent Pay Raises? Look at Technology and Healthcare
- How to Get Out of Debt on a Low-Income Salary
- Is $60,000 A Year A Good Salary?
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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