Summary of Key Points
This article emphasizes that if you want a raise, don't just keep working overtime or wait for your boss to notice. The fastest way is to let the market revalue your skills and contributions. Salaries are not based on how hard you work, but on the value of the problems you solve and the scarcity of your abilities. Internal promotions may have limited increases; therefore, you need to consider changing jobs or roles to break away from your current “salary anchor.” To increase your worth, focus on developing skills that can lead to tangible results and build a portfolio of impressive projects and external market opportunities.
Detailed Analysis
1. Salaries are not determined by how busy you are, but by the value of your work
There’s a harsh reality in the workplace: companies pay you not for how tired you get, but for the value of the work you do. For example, two people who each work 8 hours might have very different salaries:
- One might be creating repetitive reports (which anyone can do), while the other is working on projects worth millions that directly affect the company’s revenue.
- One might follow procedures, while the other identifies and solves problems, saving the company tens of thousands in costs.
Although they spend similar amounts of time, their salaries differ significantly because salaries are determined by three factors: the importance of the problems you solve, the scarcity of your skills, and the cost of replacing you. If you keep doing low-value repetitive work, it’s difficult to get a raise, no matter how skilled you become.
2. Internal promotions may not double your salary; revaluation is key to significant increases
In the same company, your salary has a “fixed anchor.” For instance, if you currently earn 10,000 per month, the company might only offer a 20% increase (to 12,000), as they are accustomed to paying that amount for your skills. However, if you move to a new company or a new role within the same company (e.g., in a growing sector), the new employer will consider: “Can you solve my problems? What results can you deliver? How much would I lose without you?” For example, if you increased customer growth from 10% to 30% at your current company, you might earn 15,000 or even 20,000 in the new company—this is the power of revaluation.
3. More skills don’t always mean a higher salary; focus on those that create results
Many people have many certifications and use various software, but still don’t get raises because not all skills are valuable. Workplace skills can be categorized into three types:
- Basic skills (e.g., writing reports, making tables, editing videos—these are common and less valuable).
- Problem-solving skills (e.g., identifying issues, proposing solutions, and implementing them—more valuable than basic skills).
- Result-producing skills (e.g., demonstrating how much revenue you’ve generated or costs you’ve saved for the company—most valuable).
For example, saying “I manage customer relationships” is less impactful than saying “I reorganized the customer base, increasing renewal rates by 15%.” The latter shows tangible results that the market is willing to pay for.
4. Having choices gives you leverage when negotiating a raise; don’t just rely on years of experience
Many people are hesitant to negotiate a raise or change jobs because they feel limited in their options. They accept low offers or take on additional responsibilities without complaint. However, having choices is crucial for negotiation:
- You need a portfolio of successful projects (e.g., “The project I led generated 500,000 in revenue for the company”).
- Transferable skills (e.g., data analysis skills that are useful in other companies).
- Connections with external markets (e.g., understanding market trends for similar roles).
Knowing your value in the market gives you the freedom to seek new opportunities and not wait passively for a raise; you can actively choose where your skills are recognized.
5. Revaluation doesn’t mean frequent job changes; focus on results first
Some think that changing jobs frequently will lead to higher salaries, but this isn’t always the case. If you don’t develop new skills and achieve results, the increase in salary might become smaller with each move. The premise of revaluation is to improve your value before making a change. For example, build on a successful project at your current company and then use that as leverage to get a better offer at another company. Job hunting is just a means; the key is to genuinely enhance your value.
In summary, getting a raise isn’t about working yourself into exhaustion; it’s about letting the market recognize your true worth by developing result-producing skills and building a strong portfolio. Take the initiative to make your value visible and choose where your skills are valued.