Why Your Salary Raise Feels Like a Letdown: When a 5% Isn’t Enough
Why Your Salary Raise Feels Like a Letdown: When a 5% Isn’t Enough
Let’s talk about something that might hit close to home: salary raises. They’re supposed to feel like recognition for your hard work and dedication, right? But what happens when they barely scratch the surface of what you need? Today, I’m sharing a story about a client who faced this exact situation—and how they broke free from it to build a life they love.
Real Talk: The Client’s Story
You’ve been working hard, staying loyal, and finally, after what feels like forever, your employer offers you a raise. But then you see the numbers: 5%. That’s what happened to my client after two years with no salary adjustment. For them, this increase came out to about €170 more per month net. Sound familiar?
Here’s the kicker—that €170 didn’t even cover the rising cost of groceries, energy, and everything else that’s been climbing lately. Instead of feeling appreciated, my client felt stuck. They came to me and said, “I’ve been patient, I’ve worked hard, but this? It’s not even making a difference.”
We started coaching, digging into what they really wanted. They asked their company to use the career and development budget for coaching sessions—and it was approved. Through our work together, they realized it wasn’t just about the money. It was about finding an environment where their contributions were valued and growth was a priority. That’s when they decided to explore new horizons.
Want to know how career coaching can support your journey? Check out 11 Ways Career Coaching Can Help You Land Your Next Job for actionable insights.
How Salary Raises Work in Germany
Let’s break this down. Salary raises in Germany are usually:
Modest Annual Increases: Most employees see raises in the range of 3-5% annually, often tied to inflation or collective bargaining agreements.
Performance-Based: Some companies reward exceptional performance, but even then, raises rarely exceed 10%.
Union Agreements: For roles covered by collective agreements, raises are typically pre-determined and standardized.
Promotions: The most significant raises often come with promotions, which can increase salaries by 10-20%. However, promotions aren’t always readily available.
On paper, these increases might seem fair. But in reality, they often fail to keep up with the rising cost of living or reflect the true value an employee brings.
Why Changing Jobs Is Often the Best Way to Break Free
If financial growth is your priority, a job change is often your best bet. Here’s why:
Competitive Market Rates: New employers are motivated to attract talent by offering market-aligned salaries.
Negotiation Leverage: The hiring process gives you the perfect opportunity to negotiate for a salary that reflects your worth.
Bypassing Internal Limits: Many companies have caps on raises for current employees, but those don’t apply to new hires.
Additional Benefits: A new role can come with more than just money—think remote work, better perks, and growth opportunities.
Considering a career change? Learn more about how career coaching can help you navigate this transition by reading Making a Career Change? Here’s How Career Coaching Can Help.
My client saw this firsthand. By shifting their focus to external opportunities, they broke free from their previous role and landed a job that aligned with their worth and aspirations.
The Outcome: A Fresh Start with Real Growth
How did their story end? After months of strategic job searching and interviews, my client secured a role that offered a 20% salary increase. But it wasn’t just about the money. Their new job came with:
Flexible working options, including remote days
Enhanced benefits like better healthcare and additional vacation days
Clear career advancement opportunities
The raise wasn’t just a number; it was a sign of being valued and supported in a way that wasn’t possible before.
Conclusion: Build a Life You Love
Salary raises are important, but they don’t always bring the change you’re looking for. If you’re stuck in a cycle where your hard work doesn’t seem to pay off, it might be time to create your new blueprint. Whether it’s negotiating for more, exploring other opportunities, or simply gaining clarity on your goals, there are ways forward.
Are you ready to break free and explore your next horizon? Book a free, no-strings-attached session with me today. Let’s build a plan that works for you.
Not yet ready to book a call, but would like to ask a question? Email or WhatsApp me.
Until our next breakthrough!
Let me know in the comments below if this article was helpful for you and what other topics you'd like me to cover next. Your feedback helps me create more content to support you on your journey.
