This guide outlines the 9 key strategies for how to make more money in your current role or your next one.
There is no denying that although women constitute a chunk of the modern-day labor force, they still get paid less than men, even at the top level. As per a Pew Research Center analysis of full and part-time workers’ median hourly earnings in 2020, women earned 84% of what their male counterparts in the same role earned. This was found to be because most women — and many men — do not use strategy to reach a higher pay scale.
How to make more money: 9 top strategies
Luckily, there are various tactics to make more money. These are the top 9:
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Further your education
It is no secret that continuing your education is one of the best ways to advance your career and make more money. According to the Bureau of Labour Statistics, any advanced education can increase your income by thousands of dollars annually. Therefore, consider furthering your education as a practical way to make more money.
Continuing your education can lead to a pay raise in your current job. Alternatively, it can qualify you for a new role that has a higher salary. For many women in business, getting a Master’s degree is typically the next step on the educational and career advancement ladder.
Therefore, it is prudent to enroll in an outstanding Master’s degree course to boost your prospects of career advancement and higher pay. For instance, if you are a tech expert or cyber security professional, consider taking various online cyber security courses to establish yourself as a trusted leader in the field. This course offers technical skills that answer pressing industry needs, placing you in high demand in the growing cybersecurity job market and boosting your chances of earning more.
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Become a master negotiator
Your employer will likely not offer you a higher salary until you ask, so having excellent negotiation skills is non-negotiable to get what you want and make more money. Honing your negotiation skills is even more essential as a woman in business since various studies show that women don’t negotiate as much as men do.
Linda Babcock, author of Women Don’t Ask, revealed that 57% of men negotiate their salaries, while only 7% of women do. Also, even some of the highest-ranking women in business are victims of this skittishness over salary negotiations.
Facebook’s current COO, Sheryl Sandberg, revealed in her book “Lean In ” that Mark Zuckerberg had interviewed her for the role and made her an offer she thought was fair. However, it took the intervention of her husband and brother-in-law to push her to negotiate for more money. Eventually, Sandberg demanded more compensation and only took the job after Zuckerberg improved his offer.
However, negotiation isn’t for new job offers only, since you can push for a raise during annual reviews, after taking on new responsibilities well, or when you find out that your market value is higher than your present salary level. To become a master negotiator, read various books to help you sharpen your skills for the best results.
Additionally, approach the negotiation table with data demonstrating how you have contributed to your organization’s top-line growth. This way, you can have solid proof to support your push for more salary. Finally, Sandberg recommends being pleasant but insistent and willing to draw out the conversation or postpone it instead of agreeing to everything immediately.
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Know your market value
Many experts agree that it would be challenging to increase your salary if you do not know how much you can earn in the first place. Consequently, it is critical to find out what others in your sector and at your experience level are making to obtain a fair idea of how much you can earn. Therefore, chat with your peers in other companies about how much they earn and how they have navigated any gender pay gap issues they have encountered.
Also, you can ask your colleagues in your workplace about how much they make to discover if there are any unfair disparities. Ellen Ensher, a professor of management of Loyola Marymount University, revealed that she wouldn’t have realized her colleagues earned more money than her if she hadn’t brought up the subject over a couple of drinks.
However, you needn’t rely solely on the grapevine to learn about what others are making. These days, various sites like PayScale, Glassdoor, and Salary.com can help you know what others are earning in your industry.
These sites can also reveal the standard salary to expect given your experience level, geographical location, educational level, among others. This way, you can find out all you need to know without having awkward conversations about personal finance and salaries with your peers.
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Withhold your earning history from recruiters or hiring managers
Being open is not always the best policy in business, especially when dealing with hiring managers and recruiters. If you have interviewed for many jobs, you have likely experienced recruiters asking you about your earning history or salary expectations.
Although this question is often said to be a way for recruiters to learn more about you, the answers you give might perpetuate the cycle of unequal pay for women. Consequently, avoid answering such questions and instead tell the hiring manager or recruiter that you would like to learn more about any role you are applying for.
Many states, including New York, have outrightly outlawed payment history questions, so you are entitled to withhold your answer. Suppose they insist that you provide a satisfactory response. In that case, you can offer a tight salary window in the range of what you expect to earn in salary, benefits, and compensation based on the research you have conducted for the job opening.
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Don’t use your previous salary as a starting point
Many experts also advise that you avoid using your previous pay as a benchmark when hunting for a new job, so keep this in mind. Your former salary is likely way less than you can potentially earn. Therefore, it makes sense not to base any future negotiations on it since you are unlikely to gain the additional cash you deserve this way.
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Get some recommendations
Recommendations can also help you advance your career and make more money, so keep this in mind. Clients, customers, and even colleagues you have given exceptional service to in the past will likely remember what you did and recommend you. These endorsements can be from telephone calls to your employer, email testimonials, or LinkedIn recommendations.
Personal recommendations from actual people you have worked with are potent tools that speak volumes about the incredible impact you have in your daily business. Therefore, it is worth gathering as many recommendations as possible to boost your advancement and earning prospects.
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Think beyond salary
Many people push for higher remuneration as an excellent way to make more money in their professional careers. However, besides catering to your daily needs, your salary takes care of many long-term financial goals like saving for retirement, buying a home, and paying off debt. Therefore, consider various ways your present or potential employer can help you get ahead in other aspects of your personal finance.
For instance, if your organization offers a 401 (k) match, take full advantage of it to get more money. Under a 401 (k) match arrangement, your employer contributes a specific amount to your retirement savings plan based on how much you put into this plan annually. Although a 401( k) match can double your contributions, a 2017 Betterment for Business survey revealed that 23% of Americans weren’t taking advantage of this opportunity to make more money.
Similarly, if your company offers childcare benefits, consider signing up for this if you have children. Furthermore, if a raise is off the table, you can ask your company for an on-the-spot bonus that you can contribute towards particular financial goals.
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Consider switching companies
Moving to a new company might be necessary if your negotiation efforts fail to get you the salary you want. However, it might be a great idea to move to a less established company since data indicates that startups and smaller companies are less likely to have substantial wage gaps than larger, older, and more corporate organizations.
These companies often have less flexibility in their staff’s salaries, so they can’t afford to give one worker a drastically higher wage than their counterpart in the same role. Consequently, less-established businesses in your industry that offer you more money are worth considering when switching companies.
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Consider job-hopping
According to ADP’s Workforce Vitality Report, employees see the most substantial pay gains when switching jobs. Therefore, consider job-hopping as a great way to earn more money as a woman in business. However, it would be best to be smart about your job-hopping to go about it in the right way.
For instance, don’t move to new companies too often since you can come off as non-committal on your resume, impeding your career growth in the future. Also, leave each job on excellent terms by submitting an official and respectful resignation letter to avoid burning bridges on your way out.
Finally, consider other factors like the work environment and career advancement opportunities your new roles offer instead of just following the money.
