Why Organizations Devalue Employees.

A simple hack to avoid someone else getting what is yours

Everyone has the potential to be a millionaire,

If you earn $50K over twenty years, you will have earned $1 million. Over forty years, you will earn $2 million.

Increase or decrease the salary, you lengthen or shorten the duration, but millionaire status is an attainable goal.

However, That’s not how people view millionaire status. But it is a way to open the conversation of making millionaire status a realistic goal.

To make the goal realistic, I ask questions to ensure it’s feasible, for example:

-Are the twenty years or forty-year period sufficient?

-Is it possible to earn more over time, which will shorten the time frame?

-How much do you plan on spending? Will you spend $1 million over twenty years as well?

Inevitably the conversation will turn to earnings potential and the different ways to increase income stream.

For the prospective clients who are currently employed, I ask a simple question;

How easy is it for you to ask for a raise?

That’s where it gets interesting.

I have found that most people find it easier to look for a new job or seek promotion in their current organization rather than ask for a raise!

Are you one of those people? You’re not alone.

Look at the stats on income inequality in the United States from the Pew Research Center.

• Income inequality in the U.S. is the highest of all G7 nations
• The black-white income gap in the U.S. has held steady since 1970
• Middle-class incomes have grown slower than upper-tier incomes for the past 50 years.

For millions of workers, your lifetime earnings your journey towards millionaire status are hampered because you fail to ask for your full value.

Here’s what you should know about the value of the job vs. the value of the employee in the form of an example:

A job posts a salary range between $40K-$55K “based on experience blah, blah, blah.”

There is a belief, by prospective employees, that employers will pay you what you’re worth, so if you meet the qualifications for the job, you should get $55K. Easy peasy.

However, they do not.

They offer $45K.

Here’s why;

If I can get someone to work their butt off for $45K today for a job worth $55K, I’ve created $10K of value to the organization today.

Also, each year the employer can give you a 2.5% raise that decreases the value to the organization.

So, in year 2, you did a great job, an “excellent” job, and now you’re making $47,500 for a job valued at $55K.

And so goes the cycle.

Employers are trying to make money, and salaried labor is a considerable expense. From the employer’s perspective, this means you should work as hard as possible and receive as little possible pay. The organization creates value for an expense that eats into its revenue.

Here’s what I want you to know.

The employers appropriately valued the job and devalued you as a strategy.

How often do you negotiate your value? Maybe not often, but for some, you’ve probably never negotiated a salary or wage.

In my experience, money fears play a role in this process and influence your decision-making, but the answer is more straightforward.

Most people do not know how to articulate and protect their value.

Here are a few ways to articulate value, increase earnings, and continue the journey towards millionaire status.

Ask for a raise:

The cost of living increases pays to keep up with artificial inflation. As we have seen this year, the cost of living didn’t increase by the standard 2–3%; CPI is 7%.

The Key is to make a case for yourself; what did you do that no one else did? How did you personally bring value to the organization? Did you work on any major projects? Then ask for the raise.

Negotiate the salary of your next job:

As the example shows, jobs have value, and the employer intends to squeeze as much value out of a job as possible. They will not pay you what you’re worth.

You are worth it.

Similar to asking for a raise, make your case. Ask the high point in the range, articulate how you meet the criteria, and ensure they see you as an investment and not an expense.

Monetize your experience:

Experience for experience’s sake will do nothing for you in the open market. Turn experience into certifications, licenses, or additional degrees. Instead of theorizing how your years of service mean you’re a good worker, level up.

Protect your earnings potential:

This is a biggie; buy the insurance and protect your lifetime earnings. Everyone can be a millionaire as long as you consistently earn an income over time. Things may speed up or slow down the process, but it is a fact of life. Protect your earnings, provide wealth to your family if something happens to you, leave a legacy instead of debts.

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George Blount coaches individuals on anticipating, preparing, planning, acting, monitoring, reviewing, and reacting to economic change and financial stress in their lives. Organize your financial life, nurture your money mindset, learn what you never knew about money concepts. Get the Financial Foundation Checklist at: https://bit.ly/FinFoundationChecklist