We’ve all seen posts and comments about companies refusing to give current employees a raise, even when it means hiring someone new at a much higher rate. Why do they do this?
Simple:
1. If they give into your demands now, you have the power to do it again.
2. Many hires are most productive in the first year after onboarding & training. Sometimes companies find this more worthwhile than keeping a long-time employee who has shown signs of being jaded.
Yeah, I know, “not all companies.” But enough.
Unless you have ownership or get insanely lucky with the right job, you will never be free from these two hurdles to growing your income. It is almost always better to look for a new job while asking for a pay raise so when they say no, you have options.