How to Get a Promotion to Support Rising Living Costs

The average Australian will agree that living costs are continuing to rise. With workers feeling the pinch of increased housing prices, sky-high utility bills, childcare costs, and expensive groceries, there has never been a more important time to increase your salary and stay ahead of these rising prices.

How much do you really need?

The ABS estimates that the average equivalised disposable household income is $1,124 per week. But after you account for the average household expenses, including housing, utilities, groceries, education costs, insurance and health care, there’s not much left over for saving, investing, or paying off debt (and three in four Australian households have debt). Yet to get ahead and have financial security, you need to save and invest regularly. Therefore, your options are either to:

• Decrease your expenses, or
• Increase your earnings.

As we’ve touched on the difficulties of the current cost of living crisis and how it can be difficult to decrease costs, in this article, we’ll focus on ways practical ways you can increase your earnings.

1. Get a promotion

One of the best ways to increase your salary is to get a promotion within the business that you’re employed by now.

Four ways to get a promotion:

• Ask for it! Performance reviews are a great time to discuss your role and a potential move upward, or you can schedule a meeting with your manager. Take note of any achievements you’ve made in your current role and where you’ve been taking on more responsibility. Use this information to have an open discussion about your future in the company.
• Be an engaged employee in the workplace: Put your best foot forward. Contribute to discussions, volunteer to work on other projects, or help team members with their work if needed.
• Build a strong educational foundation: Even if you didn’t start with a formal qualification, it’s never too late to get one. You can add to your training and knowledge via professional development opportunities or diploma qualifications. An American study found that 70% of employers believe it is vital for workers to continue learning, to stay up to date with changes in their role or industry. Showing a commitment to ongoing learning demonstrates to your manager that you’re serious about your role.
• Demonstrate leadership: Even if you’re not currently in a leadership role, show your managers that you are capable of leading by demonstrating those qualities in the workplace. Ways to do this could be putting your hand up if asked to lead a team, helping out newer team members, or starting an office initiative like a charity event or recycling program.

2. Secure a Pay Rise

While receiving a promotion is a great way to achieve your salary goals, it’s not the be-all and end-all. If you’ve been working hard in your role and demonstrating value to the company, it may be time to ask for a pay rise.

Make sure to research current market trends of salaries in your industry and consider the achievements you’ve made during your time in the role. This could be taking on new projects, helping to procure new business, contributing positively to team morale, or taking on extra responsibility.

Just by asking, you’re already one step closer and demonstrates that you are committed to your performance and the company. Studies found that over 70% of those who discuss a pay rise with their manager, end up with one, so it can’t hurt to try.

3. Switch Jobs or Industries

If you’re not satisfied with your salary or struggle to see opportunities for growth in your current career or company, it may be worth doing extra research. Look into the average salaries within your industry (including management and executive roles) to see whether the financial pay off of working your way up is viable.

You may find that switching careers and taking on formal training in a different industry could help you reach your goals. The investment in your education is often worth it for a higher earning potential.

You could also analyse how to apply your current skill set to a different, higher-paying industry. Many courses allow for Recognition of Prior Learning so you can top up your knowledge with a diploma, and quickly open doors in a different world of work.

4. Start your own business

Being your own boss is a goal for a lot of people. Having full autonomy over your business and role is an attractive prospect. Plus, your earning potential isn’t capped. You get out of the business, what you’re willing to put into it – and this includes your income.

Consider if your experience may lend itself to starting a business. Or, perhaps you could pursue a hobby or interest by upskilling with formal education and training. You will then be able to transfer that hobby into a side hustle that will not only provide new opportunities but also put a few more dollars in the bank.

The right option for you

Increasing your salary is the single easiest way to increase financial security and provide long-term solutions to your money goals. Whether you ask for a raise, a promotion, or you decide that going it alone with your own business is the right path; there are plenty of options available. First, look at your current place of work. You may be surprised at what opportunities already exist or what a little extra education could help you achieve. If you’re looking to upskill to reach these goals, there are plenty of flexible online courses in a range of industries to help you achieve the salary or dream role. If you’re already upskilling, take advantage of your studies immediately to increase your income ahead of your graduation.