When you are working for an employer, you are at the mercy of their whims as to whether you ever receive a pay raise or not. Is this true?

When you start out you negotiate a salary or you accept the position as advertised.

You work there for a while, then you feel like you need a raise. What do you do?

Here are the reasons an employer will pay you more:

You make the employer more money

There is no other reason.

If you get better at your job, the employer receives more productivity per hour from you and less headaches. This makes him more money

If you get a promotion, you will earn more money because you now have more responsibly. The higher you go in an organization, the more your daily activities impact the bottom line. Therefore, you are getting promoted and paid more because you are making the employer more money.

You are nice

This may translate into getting along with your peers and then promoting a positive workplace culture, which could result in less absenteeism and more productivity. More productivity means more money for your employer - nothing else. He doesn't care if you are nice if there is no effect on the bottom line.

Reasons not to receive a raise

Seniority

This is nonsense. It is a holdover from the olden days when unions were necessary. You do not deserve more money just because you have worked there for a long time. If you are doing the same job with the same efficiency, you are worth the same to the employer.

If your seniority means you are more efficient then see point #1 above - it is not the years it is the fact you are very good at your job due to experience.

Cost of living

Many would argue that you deserve a raise because the cost of living is higher. If it is more expensive to live, then you are technically getting paid less every year as inflation rises. True, but if your employers profits are not going up in kind, you do not deserve a raise.

Loyalty

Loyalty means nothing. An employer will value you to the extent that you make his life easier and he makes money from your output. If you decide to go work somewhere else, and he can hire someone to replace you with the same output, it doesn't matter. If you have a highly specialized skill or are irreplaceable then you may have a leg to stand on.

So if you want to earn more money, provide more value to those who pay you. This applies to employees as well as entrepreneurs. If you want more sales, more clients or more off anything, provide more value and people will gladly pay you for it. You can only exchange value for value. There is very little goodwill out there that will compensate you for being a good human being.

You are really only as valuable as what you do for other people.

This article changed my life.

6 Harsh Truths That Will Make You a Better Person

Despite the salty language, it is the truth. It makes a very good point about the reality of life and you would do well to read it and integrate it into your psyche.

This means you have to give to get. If you want a raise, give more. If you can't figure out a way to make what you do more valuable, do more of it.

Work longer hours.

Double your output.

Improve the quality of our output.

Do what you do faster.

Figure out ways to make your boss more money. Help your supervisor to succeed. You can only be rewarded for giving, not taking.

At first, this whole concept sounds awful. It seems cold and harsh. I begin to question the inner workings of people and wonder if the doomsayers are right. Perhaps we are headed for a dystopian future where we eat each other. I don't know.

But in essence, this is actually how everything works, including the good stuff. The basis for all human interaction is the exchange of value for value.

In a healthy conversation there is an exchange of information between two people where each sends and receives the requested content. In a one-sided conversation only one person benefits. This is unhealthy and non-productive as the person who didn't get to speak will be less likely to want to engage in further conversation with the person who dominated the interaction.

In love, we tend to think of a healthy relationship as one where two people love each other, and they each give and receive equal amounts of love in the form that they prefer. Unrequited love is no fun.

In friendship it is the same. Good friends enjoy each other's company. They each get something out of the relationship or it usually fades over time. The value in this situation could be defined as companionship, laughter or intellectual stimulation. Value takes many forms.

In business it is no different. If I have something you want and you give me something that I want, we have the means for a business transaction. You have an iPAD and I have money. I want an iPAD and you want money. I give you money and you give me an iPAD. We both walk away happy.

There is no other way the world works, unless you are a psychopath and just take without giving.

I first learned of this concept from a man names Robert J Ringer in one of his books. I don’t remember which one but they are all worth reading.

I know there are some people out there who will not be inclined to provide fair value in exchange for your contribution. This happens. The best thing you can do is find another situation to exchange value in. These people will eventually be exposed for who they are and will have a harder time getting value from anyone in the future.

So if you want a raise it is in your power. You can control it by finding out what your boss values and providing more of that. You are not subject to their whims. You can appeal to the basic function of human interaction. There is no better selling point than that. You give more, therefore you should receive more. If they don't want to give more, then they can find someone else to take advantage of. You respect yourself too much to be under-valued.

You can also give yourself a raise by learning about my BYOB investing strategy. By buying additional blue-chip, dividend-bearing stocks you are giving yourself a raise and you don't really have to work any harder for it. They may even give you a raise without you asking for it if they have a good year and they raise their dividend. Yay!

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