Move for Money?

Anita,

I heard on the news that lots of states now have higher minimum wages. Should I quit my entry-level job and move to one of these states to make more money?

Dear, Show Me the Money,

MoneyIt is true that there have been a number of states, as well as cities, who have adopted legislation raising their minimum wage above the Federal mandate.  Eleven states increased their minimum wages in 2014, and as of January 1, 2015 nine more states joined them — for a grand total of 29 states with higher than the current $7.25 federal minimum wage. Some states have scheduled increases, stepping it up gradually. See the list by state.

Before giving your notice, do your homework. Moving to another state is a big step, especially if you don’t have a support system of family and friends in your new hometown. There may be a period of unemployment while settling in, unless you are fortunate enough to work for a large company where transferring to another location is an option. Are you financially prepared with a cushion of savings for a transition period with no income?

Speaking of budgeting, the cost of living in a potential city should be a deciding factor. For instance, while San Francisco’s $11.05 hourly pay rate is higher than the minimum wage for most of California and the U.S., you’ll shell out a whole lot more of your paycheck in the city by the bay. Numbeo has a useful online cost of living comparison  tool that can open your eyes to things you might not think about, like the difference in your monthly utilities or the cost of chicken breasts at the supermarket.  State income taxes vary, too, from no state income tax in six states like Texas, to the highest rate of 13.3% in California. This calculator at WhyNotMove.org uses the difference in various taxes (including property and sales tax) to show you how much you will gain – or lose – by moving to another state.

Change – even for the good – is always stressful.  If and when you do find a new job, you’ll be the “new guy” both at work and in your personal life, hundreds or thousands of miles away from your former home.  Depending on your personality type, this can be the beginning of an exciting adventure or an overwhelming transition.

There are other ways to increase your earning potential, no matter where you live. Further your education, whether through college, a company training program (ask your supervisor about opportunities), or free and low-cost courses on the Internet. See my Back to Class post. Just going the extra mile at your current job can be a pathway to promotion and increased wages.

Readers: Would you move to another state to make better wages?

Do you have a job-related question? Ask Anita.

Subscribe to receive weekly emails with career tips and advice for job seekers, employed people, and managers and supervisors.

RELATED POSTS:
Should We Raise the Minimum Wage?
Back to Class
I Resolve… to Get a New Job
I Resolve… to Get a Raise

I Resolve… to Get a Raise

Dear, Anita,

One of my New Year’s resolutions is to be better with money. I even made a budget, which I’ve never done before. But now I see that I really need to make more money. I’m gathering up my courage to ask my boss for a raise. What is the best way?

Dear, Going for the Gold,

Getting a raise is a common work-related resolution. Even though the pundits tell us we are out of the recession, gone are the days when an annual raise is a foregone conclusion. First, does your company conduct an annual performance reviews? You may not even have a chance of a raise until your official review rolls around. If your company does not have an annual review system, be sensitive to the timing when asking for a pay increase. If your company has had a setback or is in the midst of a struggle of some type, you may want to wait until the skies have cleared to ask for more money.

Should You Ask for a Raise? Prepare Your Case. If your annual performance review is coming up, don’t just go in to passively listen to your supervisor’s evaluation. Prepare some talking points ahead of time. List your accomplishments for the year: What challenge did you overcome? What big project did you finish successfully? How have you contributed to your company’s bottom line? What are your unique strengths?

Walk the Walk. You can’t just talk the talk; you have to walk the walk – every day, not just the two weeks prior to your raise request. (Do you really think the cop doesn’t know you are speeding when you brake suddenly after you spot him?) Be punctual … every day. Do your best work… every day. Have a great attitude… every day.  Even if your performance evaluation is months away, start laying the groundwork now.

Increase your Value. Just doing what you were hired to do by rote is often not enough to get the raise you want.  You must complete your tasks with excellence, and for a larger raise, with that little something extra. You may need to take on additional duties to warrant a raise. Or, you can increase your value to the company by suggesting cost-cutting measures or ways to boost sales and revenue. If your review isn’t for many months, there is time to learn a new skill or prepare that proposal outlining your big ideas.

Know Your Worth. While discussing salaries with co-workers is generally frowned upon, you will want to do some research about the going pay rate for your position. Check out online resources, such as Indeed.com’s Salary Search or Payscale.com. Instead of asking your boss for a specific dollar amount, suggest a range. And don’t be surprised if you don’t get an answer on the spot. Your supervisor may need to crunch some numbers or get approval from higher management. Do try to get a sense of the timeframe for a final resolution before leaving your meeting.

Alternatives to Raises. If your raise request is initially met with a “no,” think outside the box when it comes to salary negotiation. Could you work at home one day a week, and save childcare costs? Even at the same pay rate, that amounts to increased dollars in your wallet. Would your company be willing to offer you a one-time bonus for a special project? Are they willing to pay for your continuing education, which will benefit you in your current position as well as in jobs to come?

The best way to get a raise is to make yourself invaluable, and make your boss look good to their clients or supervisors. My past blog, Achieving the Annual Raise, gives further tips for increasing your earning power.

Readers: What has been your most successful strategy to get the pay raise you asked for?

Have a question you would like to ask? Visit http://anitaclew.com/ask-anita/.

Want to receive these tips by email? Simply subscribe for once-a-week advice for career success!

Disclaimer

Anita Clew's blog posts are intended for general guidance and should never be taken as legal advice. In all instances where harassment, inequity, or unfair treatment is believed to be present, please consult your HR Department or legal representation.
%d bloggers like this: