Leadership Tip: Your Pay Raise Is Effective When You Are

I love listening to Dave Ramsey on the radio. He’s a JosephSangl.com Financial Hero. I remember a specific conversation he held with a caller who felt they “deserved” a pay raise. When asked why they felt they deserved increased compensation, the caller could not effectively answer the question. They felt an answer of “I deserve it” should be sufficient. Dave responded with this great statement:

Your pay raise is effective when you are.

In other words, when you value to your organization and help them generate more revenue or more profit, you will be in position to receive more revenue.

  • If you help your company reduce warranty claims, you reduce their operating costs – which leads to more profit.
  • If you sell more products at excellent margins, you yield more profit.
  • If you are a manufacturing line worker and reduce a specific defect by 50%, you help the company reduce re-work expenses – which leads to more profit.
  • If you are a hair stylist and your work is so good that 95% of your business is repeat/regular customers, you’ve demonstrated the ability to secure profit.
  • If you identify a way for your company to increase its business in another field, you’ve added tremendous value to that company.

It is the individual who shows up to work every single day knowing their work is essential to the company’s success that helps the company become wildly effective. And money tends to flow toward wildly effective and innovate people.


  1. How do you add value to your organization? Can you monetize that value? If so, how much value do you bring?
  2. How can you add more value to your organization? What idea(s) would help increase revenue and profitability?

This post is part of a Leadership Series here at the wildly popular JosephSangl.com. Click HERE to read more posts in the series.

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