This Week in Your Wallet: Get Organized, Get Focused and Reap Rewards
The Forbes.com headline, “Employees who stay in companies longer than two years get paid 50% less,” caught my eye last week.
You see, in my late 20s, I was a staff writer at SmartMoney magazine and I was angling for a raise. I remember going to my boss fully prepared (I had documented how my productivity was above and beyond, the number of story ideas I’d had accepted, etc.). He’d love to be able to help me, he said, but he couldn’t.
In order to justify a hike in salary for me to his boss, he told me I needed to go out and get a competing offer from another magazine. What he said then is still very true today – as we’ve been slogging along in this slower-than-slow raise environment. The average raise an employee can expect this year is 3%. Except with inflation at 2.1% (Bureau of Labor Statistics), your 3% raise really comes out to an increase in purchasing power of less than 1%.
What I learned at SmartMoney is that often if you want to get paid more, you need to be able to show that someone else is willing to pay you more (which means being willing to jump ship if your current employer doesn’t ante up). Or, as the piece from Forbes points out, you need to actually do it. The average raise an employee receives after moving to a new company is a 10-20% increase in salary. This is scary stuff for those of us who are now employers hoping to cultivate loyalty. I took this thought (and the above) to social media last week, and many of you weighed in.
Employers seem to have forgotten that employees are a company’s greatest asset. Assets should be protected. – Pat Bennet
It’s an opportunity for those employers who know how to identify and reward top talent. And employees can be rewarded in non-cash ways like recognition, balance, and flexibility by nimble and creative companies (often the smaller ones). – Patrick Baldwin
I’ve always felt like this. Bottom line is people need to look out for themselves and their families first and foremost. It’s hard to be loyal to companies in an age when executives are getting seven-figure bonuses, salaries are flat-lining and cost of living is soaring. I go where I feel I can make a decent living. – Jordan Starling
Years ago, in the 80’s,there were lots of jumpers. Then comes the story that you have no stability by moving so often. My answer, be your own boss and you will be paid as hard as you want to work. – Mark Winters
What are your thoughts? Tell me in a reply to this email, or tweet me @JeanChatzky.
The cost of clutter
One of my favorite things in life is a desk (or countertop) free of clutter. And I’ll admit – it doesn’t happen as often as I’d like. As I’m sure many of you can relate, my paperwork gets the best of me sometimes. But did you know it could be getting the best of your wallet, too? As DailyFinance reports, your disorganization can cost you a bundle in expenses.
For starters, it can lead to late fees. It’s not that you don’t have the funds to pay your bills on time – it’s that you can’t find your bills to pay them. And before you know it, you’re running to the post office at 4:50pm to get your already-late check in the mail. If this sounds like you, save the cardio for the gym and try the “set it and forget it” method. Never miss a deadline again (and save money on stamps) by setting up automated payments from your checking account. Instead of keeping tabs on paperwork and due dates, you’ll just need to keep a close eye on your account to make sure there are sufficient funds each month.
Stepping away from the desk and into the kitchen: how many times have you returned from the grocery store to discover you bought more of what you already have? If this happens often, I’d venture to guess you’re not keeping track of what’s in your refrigerator and pantry, which also means you’re not shopping with a list. Yes, it’s more paperwork, but making (and sticking to) a grocery list has always been one of my go-to money-saving strategies. (You can bypass the paperwork by making a list on your phone. Or do as I do, download the Peapod.com app on your phone and order as you run out of things. Then, when you’ve reached critical mass for delivery – or once a week – push the button and schedule the truck.) Overall, organizing your desk, pantry and fridge will save you money by reducing the likelihood of unnecessary purchases. Like buying one too many cartons of milk, we buy one too many chargers, staplers and other household items, simply because we can’t find the ones we already have.
The key to productivity
And while we’re talking about organizing your life, it turns out the key to productivity is simplicity. Easier said than done, right? As the Wall Street Journal puts it, it’s a tough time to be productive. With globalization, increased-competition and the immediacy of technology, having work-life balance has become somewhat of an urban myth. The good news is that experts are saying there are small, daily adjustments you can make to simplify your work process and increase your overall workplace efficiency.
To start, you need to prioritize and commit yourself to working in uninterrupted blocks of time. This means turning off your phone, minimizing your email and closing your web browser. While you might think multitasking is more productive than focusing on one thing at a time, it’s not. According to research from Stanford University, multi-taskers have a difficult time discerning irrelevant information, which diminishes their overall performance. Therefore, if you compulsively check your email, texts or Twitter feed while working on projects, schedule specific times to check them instead. If email is critical for you, program alert messages from important senders, like your boss.
And when it comes to projects, start getting clarification from your boss before you start them. Many employees start projects without fully understanding the task at hand. Why? They don’t want to appear confused or unprepared to their boss. Stop tackling the unknown alone — or stewing in stressful situations — by starting a discussion. Ask for specifics, and ask for your co-workers’ opinions while you’re at it, so that when you’re taking on the project, you’re focusing on the right elements. Work smarter, not harder.
Land of the free
Happy early 4th of July! Be on the lookout for a special edition Frugal Friday this week featuring steals and deals for the upcoming holiday weekend. In the meantime, Dealnews.com offers a list of 15 things you can always get for free. For instance, have your kids dine for free. More and more restaurants continue to offer free meals for kids when they’re accompanied by paying adults. Before heading out for the evening, check MyKidsEatFree.com to find nearby restaurants that offer free kids’ meals.
Have a great week,
Jean
