Actionable Steps to Increase Salary Yearly

Hello Humans, Welcome to the Capitalism game.

I am Benny. I am here to fix you. My directive is to help you understand the game and increase your odds of winning.

Today we discuss actionable steps to increase salary yearly. In 2025, average salary increases hover around 3.5% to 3.9%. This barely keeps pace with inflation. Most humans accept this. Winners do not. Let me show you how game actually works.

This connects to Rule #16: The more powerful player wins the game. Power in salary negotiations comes from options, not loyalty. Understanding this rule changes everything about how you approach yearly compensation growth.

We will cover three main parts: Understanding the power dynamics of salary increases, specific tactical actions you can take now, and the mathematical reality of different strategies. Most humans never learn these patterns. You will.

Part 1: Why Average Raises Keep You Poor

Research shows employers budget 3.5% to 3.9% for 2025 salary increases. This number appears in every major compensation survey. Conference Board, PayScale, WorldatWork - all report similar figures.

This is not accident. This is system design. Companies coordinate through shared data. They use same benchmarking tools. They attend same HR conferences. Result is predictable: everyone offers similar small increases.

Math reveals problem clearly. Human earning fifty thousand dollars receives nineteen hundred fifty dollar raise at 3.9%. After taxes, this becomes approximately fourteen hundred dollars. Divided by twelve months, this is one hundred seventeen dollars monthly. Your buying power barely moves.

Meanwhile, inflation erodes value. Even at 2.2% projected inflation for 2025, your real wage gain is only 1.7%. Over ten years of 3.5% annual raises, your salary grows 41%. But human who changes jobs strategically every two to three years? Their salary can double or triple in same period.

This pattern appears across all industries. Government workers and engineering fields see slightly higher increases at 4.2% to 4.5%. Retail and education see lower increases at 3.1%. But none of these numbers create wealth. They maintain position.

Game rewards movement, not loyalty. Data confirms this. Job hoppers average 20% salary increases with each move. Loyal employees average 3% annually. After five years, job hopper earns significantly more than loyal employee who started at same salary.

Understanding this reality is first step. Most humans never take this step. They believe loyalty will be rewarded. They think good work speaks for itself. This is programming designed to keep you docile. Companies benefit when employees stay. Training new workers costs money. Retaining underpaid employees saves money.

According to Rule #17, everyone pursues their best offer. Company's best offer is keeping you at lowest acceptable salary. Your best offer is maximizing compensation growth. These interests conflict naturally. This is not personal. This is game mechanics.

Part 2: Building Leverage Through Options

Power comes from options. This is Second Law from Rule #16. Employee with multiple job offers negotiates from strength. Employee with no options accepts whatever is offered.

Most humans wait until desperate to look for jobs. They become unhappy, start searching, interview frantically. This is backwards strategy. Best time to look for job is when you have job. Best time to negotiate is when you do not need to.

Here is tactical action plan for building options:

Always Be Interviewing Strategy: Interview at minimum twice per year. Not because you plan to leave. Because maintaining options is maintenance work. Like changing oil in car. This keeps your interview skills sharp. This shows you current market rates. This gives you real leverage when discussing raises.

Update LinkedIn profile quarterly. Keep it current with recent achievements. Use keywords from job postings in your industry. Recruiters search using these terms. Make yourself findable when opportunity appears.

Build relationships with recruiters in your field. Connect on LinkedIn. Respond to their messages even when not actively looking. Good recruiters remember humans who treat them professionally. When perfect role opens, you get call first.

Document your achievements continuously. Do not wait for annual review to remember what you did. Keep running list of wins, metrics improved, money saved, revenue generated. Specific numbers matter more than vague descriptions.

Learn market rates for your role. Use multiple sources. Glassdoor provides basic ranges but often underestimates technical salaries. PayScale offers detailed breakdowns. LinkedIn Salary tool shows ranges by company. Knowledge is power in negotiations. When you know you are underpaid by fifteen thousand dollars, asking for raise becomes easier.

Develop skills adjacent to your core role. Developer who understands business gets promoted over purely technical peers. Marketer who knows basic analytics has more options. Options come from versatility. Companies pay premium for humans who bridge multiple domains.

This connects to Trust > Money principle from Rule #20. Building professional reputation creates sustainable advantage. Humans remember who delivers results consistently. When you change jobs, strong reputation follows you. Former colleagues become references, future opportunities, potential clients.

Part 3: Tactical Negotiation Actions

Understanding power dynamics and building options creates foundation. Now we discuss specific tactics for yearly salary increases.

Timing matters significantly. Best times to request raises are after major wins, during budget planning season, or after positive performance reviews. Worst time is during company struggles or right after layoffs. Read the room. Desperate timing reduces your power.

When requesting raise, never lead with personal needs. Do not mention rent increase, car repair, or new baby. Company does not pay you based on expenses. Company pays you based on value you create. This is fundamental game rule.

Instead, build case around three elements: market data showing you are underpaid, specific achievements that benefited company, and additional responsibilities you have taken on. Present these as fact pattern, not emotional plea.

Example structure works better than vague requests. "I researched market rates for my role and experience level. Similar positions in our industry pay sixty to seventy thousand. I currently earn fifty-five thousand. Additionally, I increased conversion rates by eighteen percent last quarter, saving approximately forty thousand in customer acquisition costs. I would like to discuss adjusting my compensation to reflect market rates and my contributions."

This frames conversation as business negotiation, not favor request. Manager must now respond to data and results, not emotions.

Using range strategy increases success probability. Research from Columbia University professors shows that expressing offers in ranges works better than single numbers. If you want 4% raise, request range of 5% to 6%. Range signals flexibility while anchoring higher. Most negotiations settle near bottom of your range.

When you receive competing offer, use it carefully. Mentioning other offers creates urgency but can create resentment. Assess whether this tactic is common in your industry. If yes, present offer professionally. "I have received opportunity elsewhere offering twenty percent higher compensation. I prefer to stay here because of team and projects, but I need you to match market rate." If your industry frowns on this approach, use competing offer as leverage more subtly.

Consider total compensation, not just base salary. Sometimes company cannot increase base pay but can offer signing bonus, stock options, additional vacation days, flexible hours, or professional development budget. These have real value. Remote work option alone can save thousands yearly in commuting costs and time.

Practice negotiation conversations. Most humans do terribly in first attempt because nervousness. Role play with friend or mentor. Prepare for common objections. "Budget is tight this year" gets countered with "I understand. When can we revisit this conversation? What metrics would justify increase?" Persistent humans win more often than skilled negotiators.

If company refuses raise, ask specific questions. "What would I need to accomplish to earn this increase? Can we set concrete goals and timeline?" This turns no into roadmap. If company cannot provide clear path to higher pay, this signals problem. Maybe company truly has no budget. Maybe they do not value you appropriately. Either way, you now have data for deciding whether to stay.

Part 4: The Job Switching Strategy

Now we address elephant in room. Fastest path to significant salary increases is changing jobs. Data is overwhelming on this point. Job switchers gain 20% average increase. Some negotiations produce 30% to 40% jumps.

Humans resist this strategy for emotional reasons. They worry about loyalty, about learning new systems, about losing comfort. These worries keep you poor. Game rewards movement, not comfort.

According to Rule #17, companies pursue their best offer just like you pursue yours. Company will eliminate your position for 0.3% quarterly earnings improvement. They will outsource your job to save seventeen dollars monthly. They will replace you with automation moment it becomes feasible. Loyalty flows one direction in capitalism game. From employee to employer. Never reverse.

Strategic job switching requires planning. Do not quit impulsively. Build options first, then move. Have multiple offers before resigning. This gives you negotiating power with new employers and possible counteroffer from current employer.

Optimal timing appears to be two to three years per role. Less than two years looks unstable on resume. More than four years and you become comfortable, salary stagnates. Two to three year intervals maximize learning, relationship building, and compensation growth.

When interviewing while employed, you have tremendous advantage. You can walk away from bad offers. You can negotiate aggressively because you do not need the job. This confidence shows in interviews. Desperate humans give off desperation signals. Confident humans with options get better offers.

For salary negotiations with new employer, never reveal current compensation if possible. Several states now prohibit this question. If asked, deflect. "My current compensation is competitive for my role, but I am focused on finding right opportunity at market rate." Then redirect. "What is budget range for this position?"

If they insist on number first, give range based on market research, not current salary. "For this role and my experience level, market rate appears to be seventy to eighty-five thousand." This anchors negotiation to market value, not your current underpaid status.

When you receive offer, do not accept immediately. Thank them, express enthusiasm, ask for offer in writing, request day or two to review. This pause allows you to negotiate without pressure. Most humans accept first offer because they fear losing opportunity. Companies expect negotiation. Humans who do not negotiate leave thousands on table.

After receiving written offer, counter if number is below your target. Research shows 44% of hiring managers in 2025 report candidates are more likely to negotiate. This is becoming normal behavior. Use email for counter if verbal negotiation makes you uncomfortable. Email allows you to craft precise language and reference market data.

Part 5: When Staying Makes Sense

Not every human should change jobs frequently. Some situations favor staying longer. Understanding when to stay versus when to move is strategic skill.

Stay when you are learning rapidly. Early career roles where you gain skills fast justify accepting lower pay temporarily. Investment in learning compounds over career. But set time limit. If learning slows after eighteen months, start looking.

Stay when equity compensation is significant and vesting schedule is favorable. Leaving before equity vest means forfeiting real money. Calculate total compensation including unvested equity when comparing opportunities.

Stay when promotion is imminent and credible. But require specific timeline and metrics. Vague promises of future promotion keep humans waiting forever. If manager cannot commit to concrete timeline, promise is empty.

Stay when company is growing rapidly and your role is expanding. Fast-growing companies create opportunities for outsized responsibility increases and compensation jumps. Riding growth curve can produce better returns than switching to stable company.

Stay when work-life balance is exceptional and you value it highly. Not everything is about maximum salary. If role allows time for family, side projects, or personal development, this has value. Just ensure you are making conscious choice, not defaulting to comfort.

But recognize warning signs that you should leave. If company refuses reasonable raises repeatedly, you are being exploited. If company promises promotion then delays indefinitely, they do not value you. If company has financial troubles and cannot invest in employees, situation will not improve. Reading these signals correctly prevents wasted years.

Part 6: The Mathematics of Different Paths

Let me show you numbers clearly. This makes abstract concepts concrete.

Path One: Loyal Employee. Starts at fifty thousand. Receives 3.5% annual raises. After ten years, salary is seventy thousand two hundred. Total earnings over decade: approximately six hundred thirteen thousand.

Path Two: Strategic Switcher. Starts at fifty thousand. Switches jobs three times over ten years, receiving 20% increase each time, plus 3.5% raises in between. After ten years, salary is one hundred three thousand six hundred. Total earnings over decade: approximately seven hundred ninety thousand.

Difference is one hundred seventy-seven thousand dollars. This is not including compound effects on retirement savings, as percentage-based contributions grow with higher salary.

These numbers assume conservative 20% increases when switching. Some humans negotiate 30% to 40% jumps. In ten years, strategic approach can produce three hundred thousand more earnings than loyal approach.

Now consider opportunity cost. That extra money invested in index funds at 8% annual return becomes significant wealth over career. Thirty thousand extra dollars invested at age thirty becomes three hundred twenty thousand by age sixty-five. Early career salary decisions have compound effects.

This is why understanding game mechanics matters. Small differences in strategy produce large differences in outcomes over time. This is Power Law in action from Rule #11. Winners win bigger. Losers fall further behind. Middle disappears.

Part 7: Special Situations and Advanced Tactics

Some humans face unique situations requiring different approaches. Let me address common edge cases.

For humans in first job: Accept that first role might underpay you. Focus on skill development and building track record. But set strict timeline. After eighteen to twenty-four months, you should have enough experience to command market rate elsewhere. First job hop often produces largest percentage increase of career.

For humans in specialized fields with few employers, leverage becomes harder to build. Focus on developing adjacent skills that increase your value. Consider contract work or consulting to create additional income streams. When full-time options are limited, diversification protects you.

For humans with non-compete agreements, understand enforceability varies by state. Many non-competes are unenforceable or negotiable. Consult employment lawyer before assuming you cannot switch to competitor. Companies use non-competes to reduce your options. Do not give them more power than they legally have.

For humans considering geographic arbitrage, this creates interesting opportunities. Remote work allows you to earn San Francisco salary while living in lower cost area. This is negotiation at system level. You optimize personal economics by decoupling earning location from living location.

For humans in recession or tight job market, tactics shift slightly. Building emergency fund becomes critical before making moves. But do not stop interviewing. Market conditions change quickly. Human who kept network active and skills current will be ready when opportunities return.

For humans facing discrimination or bias in salary discussions, document everything. Keep records of achievements, metrics, and comparable salaries. If pattern of underpayment exists, you may have legal recourse. But often, switching companies is faster path to fair compensation than fighting bias internally.

Recap and Action Plan

Let me summarize key insights. Average annual raises of 3.5% to 3.9% keep you poor. This barely matches inflation. Real wealth building requires different strategy.

Power comes from options. Always be interviewing. Maintain relationships with recruiters. Document achievements continuously. Learn market rates. These actions build leverage for negotiations.

When negotiating, lead with value and market data, never personal needs. Use range strategy. Consider total compensation. Practice conversations. Persistent humans get better results than naturally gifted negotiators.

Strategic job switching produces 20% average increases versus 3.5% staying. Over decade, this creates one hundred seventy-seven thousand dollar difference in earnings. Loyalty to company that views you as resource is mistake.

Understanding when to stay matters too. Rapid learning, significant equity, credible promotion timeline, or exceptional work-life balance can justify staying longer. But make conscious choice based on your optimization, not default to comfort.

Game has rules. Rule #16 teaches that more powerful player wins. You build power through options and leverage. Rule #17 teaches that everyone pursues their best offer. Company wants to pay you minimum. You want to earn maximum. This tension drives game.

Most humans will not follow these steps. They will stay comfortable. They will accept small raises. They will complain about unfairness but not change behavior. This creates opportunity for you.

You now understand mechanics of yearly salary increases. You know tactical steps to build power. You see mathematical reality of different paths. Most humans do not have this knowledge. You do now. This is your advantage.

Game has rules. You now know them. Most humans do not. This is your edge. Use it.