Is Wage Stagnation Reason Enough to Leave Your Job? (2024)

FAQs

How long is too long to go without a raise? ›

Deciding when to leave your job because of a lack of pay raises is a decision you should make when you feel ready. If you've been with a company for more than two or more years, have showed good work ethic and have asked for a raise directly but still haven't received one, then it might be time to move on.

That means policy actions such as passing a higher minimum wage, expanding rights to overtime pay, providing paid sick leave, protecting the labor rights of undocumented workers, and restoring the right to collective bargaining.

A decline in the use of standardized pay rates contributed to stagnating wages from the 1970s to the mid-1990s. In the 1970s, hourly compensation for blue-collar workers began to flatline, in stark contrast to rising incomes at the top.

After receiving a performance review without the anticipated salary increase, your first step should be to seek clarification. Request a meeting with your manager to discuss the review in detail. Use this opportunity to understand the specific reasons behind the decision not to increase your salary.

Be diplomatic in your response.

For example: "Thank you for letting me know. I'm sure it won't surprise you to hear that I feel disappointed that the organization can't accommodate a compensation increase. Despite that, I am still dedicated to delivering my best.

This can be trickier than it has any right to be. As a matter of general principle, yes, you should be able to say that you don't want to take on additional responsibilities unless you're paid appropriately for them, particularly when those responsibilities are clearly part of a higher-level, higher-paid job.

While the federal minimum wage has remained stagnant at $7.25 per hour since 2009, many states have continually raised theirs. "States began instituting their own, higher minimum wages during periods of federal inaction," says Ben Zipperer, an economist at the Economic Policy Institute.

There are a variety of factors that can contribute to financial stagnation, including a lack of financial literacy, poor spending habits, and a limited income. It's important to approach the issue from multiple perspectives in order to gain a comprehensive understanding of the situation.

Have salaries kept up with inflation? ›

Many workers say their pay isn't keeping pace with inflation

Even the workers who received a pay increase of some kind were less likely than they were last year to say that their income had kept pace or beat inflation, at 36 percent in Bankrate's 2023 poll versus 39 percent in 2022.

Over the last 35 years (with the exception of the late 1990s), hourly wages of the vast majority have lagged far behind economy-wide productivity. This failure of wages to grow and rising wage inequality is the primary explanation for the rise of family income stagnation and income inequality over the past generation.

Don't give unfounded feedback without facts. If you are telling your employee that they need to work on their conflict resolution skills, you must provide an example of what they said/did that wasn't effective. The same is true when giving positive feedback. Don't tell them they manage their time well; give examples.

Number one: There's no law that requires your employer to do performance evaluations. We hear that a lot of companies do annual performance evaluations; sometimes there's mid-year performance evaluations as well.

A bad performance review can be disheartening at first, but with the right mindset and a clear plan for moving forward, it can be the thing that propels you to success next time around.

Technically, two years could be considered the maximum time you should expect between raises, but don't allow it to go that long. If you wait to start your job search until 24 months have passed, you may not be in a new job until you're going on a third year of wage stagnation.

The responses were stark. Only 4 percent said they had received a raise this year, 9 percent said they reaped a raise one year ago, 22 percent said it had been two years and 37 percent said it had been three. Average it out, and the typical worker in the survey hasn't received a raise in 2.9 years.

A good rule of thumb is to ask no more than once a year and no sooner than six months after joining the company. You might be wondering if it is the law that you should get a pay rise every year. It isn't. You can discuss the possibility of an increase, but your employer is under no obligation to offer one.

Once you have started your employment, it is advised that you wait at least six months before asking for a raise. Following this, you should not ask for a raise more than once per year – except when certain situations occur.