MONEY Earnings

The 3 Best Ways to Boost Your Earnings This Year

hand holding dumbbell with coin at the end
Sarina Finkelstein (photo illustration)—Getty Images(2)

To pump up your salary, switch up your career routine.

Welcome to Day 8 of MONEY’s 10-day Financial Fitness program. By now you’ve seen what shape you’re in, bulked up your savings, and cut the fat from your budget. Today, add some muscle to your paycheck.

When you hit a fitness plateau, taking a new class or picking up a sport can be the key to breaking through to the next level. The same concept applies to your career. Landing a new job will likely result in a salary 18% to 20% higher than what you’d get via an internal promotion, according to a study by Wharton professor Matthew Bidwell.

Thanks to a rapidly rebounding job market, this is the best year since the recession to get a new gig. More than one-third of employers expect to add full-time employees in 2015, according to CareerBuilder’s annual job forecast, up from one in four last year. Here’s how to stand out.

1. Get the Inside Scoop

Employee referrals generate a full 40% of new hires, according to the JobVite 2014 Recruiting Survey. So rather than scouring the job boards, talk to people you know and ask about openings at their firms. Love a certain company but don’t know anyone there? Reach out to your personal network or tap your LinkedIn contacts to see if anyone can connect you to an employee.

2. Make Yourself Poachable

Employers are increasingly courting passive job seekers, says John Hollon, editor of TLNT.com, which covers HR trends: “These are employed workers who may be willing to switch jobs but aren’t actively searching.” Recruiters like these candidates because they’re successful and valued at their current jobs. Interested? Get on hiring managers’ radar by peppering your LinkedIn profile with keywords related to the type of job you want. You can also sign up with the website Poachable, and get the Poacht app. List your dream job and resume for recruiters to browse.

3. Be Bold

That said, maybe you love your job or just can’t move right now. That doesn’t mean settling for a middling raise. While the biggest bumps do go to top performers, simply asking goes a long way. A new study from Payscale found that 75% of employees who requested an increase got one, with 44% landing the exact figure they asked for. The odds of receiving your requested amount are even better if you’re already a high earner: Those with a salary of $150,000 or more had a success rate of 70%. Before you ask, get a sense of the budget. You have more influence when you show you see the boss’s side, says career coach Lee Miller.

Previous:

Next:

MONEY job search

How to Catch the Eye of a Recruiter in Just 7 Minutes

LinkedIn on a mobile phone
Felix Choo—Alamy

An optimized LinkedIn profile can help you stand out from the crowd.

As part of our 10-day series on Total Financial Fitness, we’ve developed six quick workouts, inspired by the popular exercise plan that takes just seven minutes a day. Each will help kick your finances into shape in no time at all. Today: The 7-Minute LinkedIn Makeover

Nine out of ten recruiters use social media to find or check out candidates, especially LinkedIn. Your profile is 14 times as likely to be viewed if it has a picture. So find a professional-looking photo and upload it to your computer before you start the clock.

0:00 Log in to your LinkedIn account and select “Edit Profile.” Click on “Add Photo” to upload the pic you’ve selected. You’ll see a yellow square that you can drag to change the position and size of the picture. Make sure you’re centered and hit save.

1:05 By default, LinkedIn uses your job title as your profile headline. Instead, write your own bold wording. Stumped? When you highlight the field to change it, LinkedIn lets you peek at what others in your industry are using.

2:34 Check out your profile summary. Are you hitting all the keywords you’ll need to show up in recruiter searches? Take a minute to scan some job descriptions in your profession to make sure you’re using the right language.

5:00 Nothing says LinkedIn novice like an alphabetsoup URL.

Create a custom version by clicking the LinkedIn URL listed right beneath your photo on the Edit Profile page. You’ll be transported to the Public Profile page, where you can create your own. Stick with something simple, like your name.

5:35 Bulk up your recommendations politely. Write a sincere post for one of your contacts, and then email asking if she’d mind doing the same.

Previous:

Next:

 

MONEY Career Strategies

Why Your Potential Could Be More Important Than Your Accomplishments

trophy with crack in it
Jeffrey Coolidge—Getty Images

The surprising downside to achievement

Conventional wisdom is pretty clear on how to get ahead in one’s professional life. Rack up accomplishments, collect accolades, make your résumé as impressive as possible, we’re told, and rewards will follow. That all sounds nice—but it might not be true. In fact, social science suggests, the key to success might actually be to achieve less while promising more.

That’s the conclusion of a study by professors at Harvard and Stanford, who found that people tend to favor potential over demonstrated results. The researchers discovered that references to potential, such as “this person could win an award for their work,” appear to stimulate greater interest than similar references to actual accomplishments (“this person has won an award for their work”). This tendency, the paper states, “creates a phenomenon whereby the potential to be good at something can be preferred over actually being good at that very same thing.”

The professors demonstrated as much in a series of experiments in which test subjects were asked to choose between the proven and the possible. In one case, participants were asked to rate two job candidates: one with two years of experience and demonstrated leadership achievement, and the other with no experience but high leadership potential.

Despite the more experienced candidate having objectively superior credentials, subjects preferred the candidate with potential. They also implicitly predicted this candidate would be a better leader in his fifth year on the job than the more experienced candidate would be in his seventh year.

In another experiment, participants read two letters of recommendation for an applicant to a business Ph.D. program. Both versions were nearly identical, but one stressed possible talent (“Mark K. is a student of great potential”), while the other highlighted accomplishment (“Mark K. is a student of great achievement”). Once again, the subjects preferred the applicant with potential.

Why are people so drawn to the possible, even over proven results? The researchers suggest it’s simply a matter of uncertainty being more interesting than a sure thing. “Our finding is that people find potential to be exciting uncertainty,” says Zakary Tormala, one of the study’s authors and a professor at the Stanford School of Business. That makes a candidate with potential more stimulating than a safer choice, and often leads to a more positive impression.

Workers can use this quirk of psychology to their advantage by emphasizing their future value, in addition to past achievements, when applying for a job or asking for a raise. “One of the places we’ve encouraged people to make this happen is in their reference letters,” says Michael Norton, another of the study’s co-authors and professor at Harvard Business School. References “generally talk about what someone has done,” Norton says. “That’s not a bad thing to do, but it’s very important to also talk about their potential.” It can be particularly important for high achieving employees who might be more inclined to stress their accomplishments over their continued capacity for growth.

However, the professor notes, the allure of potential isn’t unlimited. In the recommendation letter experiment, researchers found that participants stopped favoring potential over success when claims of potential lacked sufficient evidence to back them up. Instead, it’s best to highlight a combination of past accomplishments and future possibilities, so no one suspects you’re hype without substance. “A mix is critical,” Norton explains. “There has to be some demonstrated sense that you’ve achieved things.”

Use it right, and our collective preference for potential can do more than get you a better job. Norton says it could also get you a date. “The classic terrible first date is the man drones on about achievements,” the professor jokes. “But if you talk about what you want to do, even if you’re not going to get there, it can be more exciting.”

MONEY Baby Boomers

How to Work Less—Without Giving Up Your Career

Briefcase with fishing lures
Zachary Zavislak

It's called "phased retirement," and it's catching on.

The youngest baby boomers have just turned 50, bringing retirement within sight for the entire generation. But many boomers don’t expect to work at full throttle until the last day at the office. More than 40% want to shift gradually from full- to part-time work or take on less stressful jobs before retiring, a recent survey by Transamerica Center for Retirement Studies found.

It’s a concept called phased retirement, and it’s catching on. Last November the federal government okayed a plan to let certain long-tenured workers 55 and up stay on half-time while getting half their pension and full health benefits. Says Sara Rix, an adviser at AARP Public Policy Institute: “The federal government’s program may influence private companies to follow their lead.”

Formal phased-retirement plans remain rare; only 18% of companies offer the option to most or all workers. Informal programs are easier to find—roughly half of employers say they allow older workers to dial back to part-time, Transamerica found. But only 21% of employees agree that those practices are in place. “There’s a big disconnect between what employers believe they are doing and what workers perceive their employers to be doing,” says Transamerica Center president Catherine Collinson.

So you may have to forge your own path if you want to downshift in your career. Here’s how:

Resist Raiding Your Savings

Before you do anything, figure out what scaling back will mean for your eventual full retirement. As a part-timer, your income will drop. Ideally you should avoid dipping into your savings or claiming Social Security early, since both will cut your income later. If you’re eligible for a pension, the formula will heavily weight your final years of pay. So a lower salary may make phased retirement too costly.

Cutting back your retirement saving, though, may hurt less than you think. Say you were earning $100,000 and split that in half from 62 to 66. If you had saved $500,000 by 60, and you delay tapping that stash or claiming Social Security, your total income would be $66,700 a year in retirement, according to T. Rowe Price. That’s only slightly less than the $69,500 you would have had if you kept working full-time and saving the max until 66.

Start at the Office

If your employer has an official phased-retirement program, your job is easier. Assuming you’re eligible, you might be able to work half-time for half your pay and still keep your health insurance.

Then ask colleagues who have made that move what has worked for them and what pitfalls to avoid. Devise a plan with your boss, focusing on how you can solve problems, not create new ones with your absence. Perhaps you can mentor younger workers or share client leads. “Don’t expect to arrange this in one conversation—it will be a negotiation,” says Dallas financial planner Richard Jackson.

Without a formal program, you’ll have to have a conversation about part-time or consulting work. To make your case, spell out how you can offer value at a lower cost than a full-time employee, says Phil Dyer, a financial planner in Towson, Md.

Giving up group health insurance will be less of a financial blow if you are 65 and eligible for Medicare, or have coverage through your spouse. If not, you can shop for a policy on your state’s insurance exchange. “Even if you have to pay health care premiums for a couple of years, you may find it worthwhile to reduce the stress of working full-time,” says Dyer.

Do an Encore Elsewhere

This wind-down could also be a chance to do something completely different. Take advantage of online resources for older job seekers, including Encore.org, RetiredBrains.com, and Retirement-Jobs.com. You can find low-cost training at community colleges, which may offer programs specifically to fill jobs for local employers. Or, if you want nonprofit work, volunteer first. Says Chris Farrell, author of Unretirement, a new book about boomers working in retirement: “It’s a great way to discover what the organization really needs and how your skills might fit in.”

Sign up for a weekly email roundup of top retirement news, insights, and advice from editor-at-large Penelope Wang: money.com/retirewithmoney.

MONEY Oscars

Patricia Arquette Wants You to Get a Raise — Here’s How to Make It Happen

The Oscar winner gave a shout-out to American women—and called for fair pay regardless of sex.

An exciting moment for many Oscar viewers on Sunday was Patricia Arquette’s Best Supporting Actress acceptance speech for her role as the protagonist’s mother in the film Boyhood.

“To every woman who gave birth, to every taxpayer and citizen of this nation, we have fought for everybody else’s equal rights,” Arquette said. “It is our time to have wage equality once and for all, and equal rights for women in the United States of America!”

Those words, which drew cheers from fellow actresses Meryl Streep and Jennifer Lopez, reflect growing tensions in Hollywood over the way women in the industry are represented and compensated. Not only do actresses have fewer roles available to them than men—only 30% of speaking characters—but they are paid less across the board. Even Academy Award-winning women face a huge pay gap: They get an extra $500,000 on average tacked on to their salary after winning an Oscar, compared with a $3.9 million bump for men.

Of course, pay discrimination is not limited to La-La Land. Women still make only 78¢ for every dollar a man makes, the Census reports, and that’s true across all wage levels, for everyone from truck drivers to top executives.

If you’re frustrated by your salary (or the pay earned by a woman in your life) and Arquette’s words resonated with you, here are some ways to change things right now.

1. Talk to a man whose job you want

A recent study found that women tend to express satisfaction with low pay because they compare themselves with female peers, and therefore never get a full picture of how underpaid they are relative to men.

Finding a male mentor in a position a notch or three above you can be a huge asset for many reasons, but one of the biggest is that he can give you an unbiased idea of what salary you should be asking for when you seek a promotion or new job.

2. Don’t say “yes” without making a counteroffer

Whether because of social expectations or a hesitation to appear too aggressive (a fear that is not unfounded given proven workplace biases), women are less likely to negotiate than men. One study revealed that only 31% of women countered the salary offer for their first job after grad school, versus 50% of men.

When you are asking for a raise or naming your salary expectations for a new job, it helps to come prepared. You’ll want to be ready with a clear description of your successes and how you have added value in your current position. And you should have an exact dollar figure in mind; research shows negotiating with a specific number makes you sound more authoritative than using a ballpark one.

If you get a resounding “no,” don’t just give up: Consider asking for a one-time bonus instead.

3. Become a mentor

It’s obvious advice to seek out strong mentors to get ahead at work. But taking subordinates under your wing can be just as effective for increasing your status.

Wharton professor Adam Grant has shown that women and men alike tend to be most successful when they balance both giving and taking at work. And women in particular can get a leg up as negotiators when they are in a mentor position, Grant found.

When the higher ups see you as a person who gives a lot and supports the people around you, it’s easier for you to take a little back—in the form of higher pay.

 

TIME Careers & Workplace

10 Things to Consider Before Investing In a New Project Idea

business-presentation
Getty Images

Following through on the wrong project ideas can be a big waste of resources

startupcollective

Question: What is one thing you ALWAYS do before green-lighting a new project or biz idea?

Test Assumptions

“There are lots of great ideas, but it’s easier to devise them than to execute them. So before you go off and try to execute new plans, it’s imperative you test some basic assumptions. If you already have customers, speak with them directly about the idea and take their feedback to heart. If you don’t, set up a landing page with an AdWords campaign to test response and prove the market exists.” — Adam Callinan, Beachwood Ventures

Ensure It Aligns With KPIs

“Before giving the go-ahead to a project or idea, it’s critical for me that the project aligns with our key performance indicators. If a project doesn’t drive to one of our key metrics, it’s likely not a worthwhile pursuit or use of resources. To have these kinds of checks and balances, it’s important to establish KPIs early on. Once in place, it’s a useful rubric to green-light ideas.” — Doreen Bloch, Poshly Inc.

Take a Step Back

“The worst thing you can do is pursue a new project or business because it sounds like an exciting opportunity. The problem is that pretty much every new idea seems like an exciting opportunity at first, but only the best of the best maintain that excitement weeks or months down the road. Set it aside and don’t think about it for a while. If you pick it back up and get just as excited, go for it.” — James Simpson, GoldFire Studios

Analyze the Pros and Cons

“I’m always thinking of new projects or business ideas to help grow our business, so I’ve developed a system to green-light them. First, I write them down and let them marinate for a few days. If the idea still seems legit, I’ll set up a call with my partner, discuss the plan/implementation in detail and write out a pros/cons list. We then analyze the data to make the final decision.” — Anthony Saladino, Kitchen Cabinet Kings

Run the Numbers

“Before moving forward with any new project, I want to make sure that it’s worth our time and the ROI is there. Numbers don’t lie. Financial projections are an essential tool for determining ROI and helping us make business decisions based on fact, not gut.” — David Ehrenberg, Early Growth Financial Services

Ask If It’s What People Want

“I see so many entrepreneurs, especially in the startup world, creating new businesses and products without even determining whether there’s a market for them or if people really want their product. Before green-lighting any new idea, I survey people, hold focus groups, run market tests through AdWords and even call people.” — Natalie MacNeil, She Takes on the World

Organize the Project First

“Before green-lighting a project, you should take the time to organize it. It is prudent to the success of the project or idea to know how long it will take, how it should be executed and who will be responsible before committing to a launch.” — Fabian Kaempfer, Chocomize

Define What Success Looks Like

“Without a clear definition of what success will look like for a given project, it’s impossible to tell whether it’s on track or even finished. By making a point of defining success before we even get started, we can decide how to measure a project and tell if it’s reaching the necessary goals.” — Thursday Bram, Hyper Modern Consulting

Run Some AdWords Tests

“Google AdWords is fantastic at validating market interest. I’ll run a few different ads over the course of a few days or a week to test how well they convert and at what rate. That tells me how crowded the space is and how strong the market interest is. Usually I don’t even create a landing page. Instead, I’ll send them to one of my other sites.” — Jared Brown, Hubstaff

Talk to Real-Life Customers

“Always test your ideas by talking to people in the real world before you invest tremendous amounts of time, energy and money. Don’t be afraid of anyone stealing your ideas. Get feedback in the wild. Even if it’s simply by sending an email to your customer list asking if it’s something they’d be interested in, that’s a start.” — Cody McKibben, Thrilling Heroics

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

This article was originally published on StartupCollective.

MONEY Workplace

Wage Equality Takes Center Stage at the Oscars

Patricia Arquette's acceptance speech at the Academy Awards put the gender wage gap at the forefront of discussion.

MONEY salary

500,000 Walmart Workers Are Getting a Raise. Here’s How You Can Get One, Too

Walmart raise minimum wage $1.75
Gunnar Rathbun—Invision for Walmart

These 5 moves can help you make sure you get what you deserve.

Two corporate giants have made headlines recently for perking up their workers’ paychecks.

Last month, health insurance provider Aetna announced it would be raising the lowest wage it pays to $16 an hour, effectively giving raises to 5,700 of the company’s workers. On Thursday, Walmart followed Aetna’s lead, revealing it would be giving 500,000 associates a salary bump of at least $1.75 above the federal minimum wage.

While across-the-board wage increases such as these are unusual, other corporations are also expected to be more generous with pay this year. Among mid- and large-sized employers, the average increase in base pay is expected to be 3.0% in 2015, up from 2.9% in 2014 and 2.8% in 2013, according to HR consulting firm Mercer.

You can help your chances of boosting your pay with these five tips:

1. Ask at the Right Time

Choosing the optimal time to approach your boss about a raise will significantly increase your chances of success. Stay on top of your own industry’s salary trends and consider whether your company and division are doing well enough to afford what you’re asking for. It’s also a good idea to ask for a raise a few months before performance reviews so that salaries aren’t already set.

Read more: How to Tell if Now Is a Good Time to Ask for a Raise

2. Know What Others are Getting

Before you ask for a raise, you’re going to need to know what kind of raise is reasonable. Check sites like PayScale.com and GlassDoor.com to get an idea of the industry standard for your position, then consult your colleagues to see what the story is internally. For women, that means making sure to check with your male mentors as well. As MONEY’s Margaret Magnarelli writes, female employees tend to be underpaid relative to their male counterparts, and often remain unfairly compensated because they compare salaries with female colleagues who are also underpaid. Gathering a broad cross section of salary data can help break through the ceiling.

Read more: The Foolproof Way to Make Sure You Land a Big Raise This Year

3. Be Able to Prove You’re Better than Average

The 3% average bump that Mercer projects isn’t bad, but being better than the norm can be very lucrative. In 2014, Mercer said the highest-performing employees received a 4.8% raise—more than 2 percentage points higher than the average for that year. How do you show you’re the best of the best? Gather a portfolio of past endorsements and ask satisfied clients to write testimonials. Then do your best to quantify your accomplishments so that your boss has the hard numbers as well.

Read more: 5 Ways to Get a Big Raise Now

4. Identify Your Added Value

Think about what you do that no one else at the office can do—either where you’ve particularly excelled or what highly marketable skill you bring to the table—and then frame your ask around this added value. Jim Hopkinson of SalaryTutor.com suggests framing your requests as follows: “Not only do I have [all the standard requirements that everyone else has] + but I also possess [the following unique traits that make me worth more money].”

Read more: The Secret Formula that Will Set You Apart in a Salary Negotiation

5. Just Ask!

As Wayne Gretzky said, you miss you 100% of the shots you don’t take. According to CareerBuilder, 56% of workers have never asked for a raise, which is a shame because 44% of those who did ask got the amount they asked for, and 31% still got some kind of salary boost. It might seem daunting to ask for more money with the economy still in recovery mode, but job openings are the highest they’ve been in a decade, almost three-quarters of employers say they’re worried about losing talented workers, and raises are gradually getting larger. Being assertive can be scary, but don’t let fear stand in the way of a bigger salary.

Read more: New Study Reveals the Odds You’ll Actually Get the Raise You Ask For

More from Money.com:

How to Balance Spending and Safety in Retirement

When to File an Auto Insurance Claim—and When Not To

4 Ways to Hit Your Money Goals

TIME Careers & Workplace

How to Disagree With Your Boss and Still Get Ahead

The Boss mug on a desk
Getty Images

Disagreeing with your boss in the right way can benefit your organization as well as your career

The fear of disagreeing with authority is universal. It exists in life, and certainly in the regimented corporate workplace. While millennials are arguably more willing to express their opinions to a superior, most workers still remain shy – to the detriment of their career progress.

The fact is that it is not only possible to disagree with your boss without endangering your job, but the willingness to do so could put you on the fast track to professional success. What we tend to forget is that most managers benefit from having their employees provide constructive feedback and contribute original ideas. It can help the managers do their own job more effectively and easily.

The key lies in why and how that disagreement is communicated. Here are 5 tips that can help you navigate those waters successfully:

  1. Make sure you are disagreeing for the right reason. Too often, we disagree to compensate for our own lack of authority, without a good reason or an end goal in mind. That’s a serious mistake since it can compromise your professional credibility with your boss. It’s also just annoying. Disagreements that have a valid context and add real value, on the other hand, can be a big plus.
  2. Disagreeing is not about arguing but making an argument. Anyone who argues routinely with their boss is likely to be eventually fired. But a worker who frames her disagreement as a logical and thoughtful argument in favor of a better approach to a situation or a new idea will be heard gladly, and win serious points with the boss. Avoid attacking other people’s views or complaining and focus instead on making your own constructive points.
  3. Do your homework. Nothing irks a manager more than a worker who insists on sharing his opinion but hasn’t done the research to support and stress test his argument. It shows intellectual laziness on the part of the worker and fails to provide the manager with the tools to evaluate the input. Think about it. If you don’t do your homework, you are effectively forcing your boss to do it for you. Could that ever be a good idea?
  4. Be passionate but not emotional. Arguments are more convincing when they are delivered with passion. The listener needs to feel that you genuinely care about your suggestions, believe in your perspective, and are willing to take ownership of it. But that doesn’t need to involve an excess of emotion, which can make you look hysterical and your boss feel pressured. A clear, confident, and calm presentation will have the best impact.
  5. Speak in the same language as your boss. Some people are extremely data-driven whereas others are more intuitive. Knowing your boss’ personality will help you relate better and communicate your argument more effectively. Put yourself in your boss’ shoes. If you think in numbers, then a numerical argument might persuade you of a different viewpoint whereas a purely gut-based presentation will meet with instant skepticism.

To summarize, don’t be afraid to disagree with your boss. Alternative views and good ideas can benefit your organization as well as your own career. Just follow these guidelines to do it the right way.

Sanjay Sanghoee is a business commentator. He has worked at investment banks Lazard Freres and Dresdner Kleinwort Wasserstein, at hedge fund Ramius Capital, and has an MBA from Columbia Business School.

Your browser is out of date. Please update your browser at http://update.microsoft.com