The easy answer to this question is yes, and for a number of reasons. From major media outlets like CNBC to large consulting firms like Willis Towers Watson to the Society for Human Resource Management (SHRM), the general consensus is that somewhere between 3-4.5% on average can be expected. But before you start spending all of that extra money, I want to advise you on a few key points within that prediction.
First of all, that is a general economic outlook. Finding details specific to the insurance industry is much more difficult to find from a reputable source. We have done some salary surveys in the past with clients that generally offer a different view from other industries. Talking to a third-party recruiter or having a very frank discussion with an internal recruiter can offer different perspectives. The idea of transparency continues to ebb and flow with hiring managers and Talent Acquisition professionals, but for the most part anymore, ranges can be offered on positions for easy competitive intelligence.
Secondly, you have to gain perspective on whether the raise comes from things like cost-of-living increases or inflationary pressures vs. a promotion or change in job entirely. For the most part, your boss does not want to hear something like, “I heard a rumor that XYZ company is paying 20% more for my position”. Unless you are actively interviewing with that company and/or in the process of accepting an offer, that is just hearsay. Be careful using that as a negotiating tactic.
Next, you should probably take a closer look at company performance, if possible. If you know your office location or your overall organization was aiming to grow by 15% and only grew by 2%, that is probably going to affect the amount of money in that pool for any raises in the new year. If, on the other hand, you find out that all company objectives were met, profits were through the roof, and you even participated in getting there, then you might be in line for a little bit more of a raise.
Lastly, look back to any conversations you may have had with your boss or internal team members about what you might need to do to achieve your raise for 2023. The biggest mistake that people make, in my humble opinion, is just hope and pray for raises, rather than pro-actively do something about it. So if you’re sitting here early in the new year, just hoping you get a giant raise for no reason, you might as well invest some time in buying lotto tickets too. Because your chances are about the same of either happening at that point. Sit down with your boss as soon as possible to see if there are more projects you can have a hand in, something you can objectively to do add to the bottom line, or even ask for a path to career progression so that your raises are merit-based and come from your work ethic.
And after all of that, if you feel like you deserve a raise, and won’t get it with your current employer, call your friendly recruiter to see if we might have some ideas for you here in the early parts of 2023! 😉