For 2007, the average pay raise is expected to come in right around 3.7 percent according to CNNMoney.com writer, Jeanne Sahadi. While that is a great number compared to the 1.5-2.5 percent increases of years past. If you are one of the people who will get a pay increase for merit and for cost of living - you can expect a whopping 7+ percent increase in compensation this year. Remember, these are just averages and if your performance or your organization did very well this year - you may even see more than that!
However, for those of us that don’t get the cost of living increase also, it really falls short. With cost of living increasing at around 3.4 percent, most of us won’t see any of that pay raise actually impact our wallets. If you work for a union company, your merit increase may be closer to a 2-3 percent range, but in general, you will also have the cost of living adjusted.
If you feel that you have been an above average contributor to your organization and that you deserve better than an “average” pay increase, come in prepared and ready to fight (nicely) for it. Most companies don’t reward with compensation any more than they have to. Coming in informed on what the average increase as well as the cost of living increase over the past year will give you a leg to stand on.
Large or small, negotiated on paper or over lunch, the average pay raise for most of working America is something that we strive for and try to beat. Most workers feel that they are less fairly compensated than others in competing companies, yet statistically they fall in the average range. So what exactly is the “average pay raise”? It all depends on who you are and what you do.
Tags: Money & Salary
