- A career strategist has called on companies to give an increase of 2 to 4 per cent
- She said this was not a pay rise as inflation is higher, currently its 6.4pc
- “A real increase… will be anywhere from 10 to 20 percent,” she explained
A career strategist has revealed how your company is tricking you into thinking you’re getting a raise.
Kyyah Abdul, the founder of consultancy Career Savage, shares job advice with her more than 160,000 followers on TikTok and recently went viral when she encouraged companies to position a two to four percent salary increase as a salary increase.
‘[It’s] not an increase. This is what we call a cost of living adjustment,’ she began in her TikTok video, which had amassed more than 1.7 million views at the time of writing.
The next step above is usually a merit increase, where they pay you for your last year’s performance, Kyyah, from Los Angeles, continues.
“And it generally ranges from five to nine percent,” she said.
‘But a real increase or promotion will be anything from 10 to 20 percent.
‘And that’s why people always jump at jobs, because companies think these little two-four percent pay rises matter.
‘With the cost of inflation, I’m sorry, two to three percent won’t cut it if they want to keep the talent.’
Kyyah explains further in a video on her YouTube channel titled: A 1-4% Salary Increase Is NOT a RAISE, It’s a DEMOTION.
‘When a company gives you a three percent raise and they say, “Congratulations.” Congratulations to me for what?’ she asked.
“Inflation is nine percent, which actually means that I cut six percent of my basic salary.
“Also in the context of many companies reporting record profits, so the whole notion that companies just can’t give people a nine per cent pay rise to match inflation, I just don’t think so.”
The US Department of Labor reported that last month’s inflation rate was 6.4 percent.
January marked the seventh month in a row of falling annual inflation from the summer’s peak of more than nine percent.
The 6.4 percent figure for January is the lowest inflation since October 2021, but it also represented a smaller-than-expected drop from December’s figure, leading some economists to fear that the battle against rising prices may be stalling.
In her YouTube video, the jobs expert also clarified that she didn’t mean her criticism to apply to small businesses.
“I don’t think small businesses should feel like they have to give everyone a 10 to 20 percent raise, especially if they can barely make ends meet,” she said.
“Big companies, they can probably afford it, but that said, not everyone deserves it [that] salary increase.
‘Some people who have decided to quietly quit where they are either doing less than what is expected of them or just really freewheeling, at a bare minimum, not exceeding expectations… they should not expect to receive [that] raise, it makes sense.
‘A profit increase, yes, and a cost of living adjustment, I think everyone should get that.’
Kyyah, who has written a career advice book called The Prepared Graduate, added the companies offering ’10, 20, 30 per cent increase’ would see less staff turnover.
And it seems her message resonated with the company’s employees.
‘OMG! I was out here praising the 4%, one person said.
“I got a 1% raise which was about $40/month… rent went up $250,” added another.
“Companies seem to rather pay new hires more than promote within or take care of their employees,” wrote a third person.
‘I got 1% on an Exceeds expectations this month. I’m looking elsewhere tonight, said another.
Others shared the very modest raises they received, with one person saying, ‘Just got a 34 cent raise.’
‘Yes, I got a “raise” last year… 1.25 more an hour. Which just comes out expensive. I need a new job,’ read another comment.
The average American worker saw record wage increases in 2022, regardless of whether they stayed in their current position or changed companies and jobs.
Data released in January shows that those who stayed in their jobs saw a 5.5 percent increase in wages in November 2022 compared to November 2021.
The Federal Reserve Bank of Atlanta also said employees who switched companies saw gains of 7.7 percent compared to the previous year.
While the growth means more money in the pockets of American workers, the increases are also pushing inflation higher, according to experts.
The wage increase for those who stayed in their jobs had increased from 3.2 percent in January 2022, an overall increase of 1.8 percent.
Job changers had an increase of 3.4 percent from November 2021 to November 2022.
Experts say the opportunity to earn a higher income at another company is what drives companies to increase wages for their current employees.