Everybody loves a merit increase. But are companies paying out enormous amounts of cash in exchange for brilliant work?
Here’s the short answer, according to Dice’s latest sentiment analysis of the tech industry: in many cases, merit increases aren’t very large. In fact, 78 percent of merit increases are five percent or less; only six percent of tech pros received merit increases totaling more than 10 percent of their pay. Below is a handy pie chart breaking down the range of increases: the bolded numbers represent the size of the merit increase, while the regular-font number below is the percentage of tech pros who received it:
Here’s your more granular breakdown: if you’re a tech pro whose merit increase was more than 10 percent of your base salary, you’re part of an extremely tiny club:
Just to put things in context: According to Dice’s most recent Tech Salary Report, the average tech salary stood at $111,348 in 2022. It’s important to note that 30 percent of professionals were either somewhat or very dissatisfied with their salaries, up from 28 percent in 2021. In other words, merit raises (along with other benefits) can mean the difference between a tech pro being satisfied with their overall compensation, or looking for a new job that will give them more of what they want.
Fortunately, anyone can press their case for a generous merit increase. Keep these tips in mind:
- Do a self-assessment: Before meeting with your manager, sit down and list your “professional assets,” including your achievements (both in your current and previous jobs), skills, experience, and your professional network. That will give you a good idea of your worth to the organization, and your possible leverage during talks.
- Research the average salary for your position: Know how much you should be paid, and how much of an increase you want.
- Be prepared to actually negotiate: Your manager might not give you what you want, especially if the organization’s budgets are tight. If they’re not offering you the right number, see if they’d be willing to give you other benefits in lieu of a significant merit increase; for example, a more flexible schedule or free training in a cutting-edge skill.
If you’re critical to a company’s tech stack and broader strategy, and you have a track record of operational success, chances are good you’ll land a merit raise.
