Gephardt: Do You Expect To Get A Raise This Year? Most Say, ‘No.’
Jan 22, 2021, 6:15 PM | Updated: Jan 25, 2021, 10:47 am
SALT LAKE CITY, Utah – Without question, the economy is in bad shape with the pandemic still raging, so it might not be surprising that a lot of companies are not offering raises this year.
As the KSL Investigators dug into the numbers, we found an equity issue: The groups who arguably need more money the most are least likely to get it.
A whopping 70% of U.S. adults said a pay increase would be important for their household’s financial well-being this year. The bad news is most workers don’t expect to get it.
Only about 40% of workers expected a pay increase in 2021, according to a new survey from The Simple Dollar.
“It’s a pretty grim picture,” said personal finance expert Taylor Leamey.
Some of the specific data in The Simple Dollar’s survey was especially troubling. Women were less optimistic about getting a pay increase in 2021 than men, and it’s those who perhaps need it the most that won’t get it.
“Confidence for getting a raise actually does drop the less money you make,” Leamey said.
A mere 36% of people who make $40,000 per year or less expected a raise. That number jumped to more than half (56%) if the worker makes $80,000 or more annually.
Those surveyed didn’t really give off an angry vibe, Leamey said.
“The pandemic has made us all realistic in the fact that, like, we know what we need, and we also know that like companies are being affected,” she said.
A major recession is not necessarily the best time to ask your boss for more money. Financial experts said now is a good time to try and learn new skills so that when the economy does get going again, you’re in a better position to show just how valuable you are to a company.
Leamey also encouraged workers to be bold about asking for more money if they need it because that need will not go away.
“A lot of people need raises and they should feel empowered to ask for it,” she said. “They might get told that it’s not in the cards right now, but what we need to remember is, don’t ever leave it on a shut door. Make sure you have the opportunity, you know when things do get better, that you have the opportunity to reopen that conversation because you’re still going to need it. If you need it, now you’re going to need it in six months.”
