How to get rich as an employee

Did you know that inflation-adjusted wages in the US have grown by ~0.4% per year since 1979 for median earners? How does that sound? You’re probably now comparing this to your own situation. To me, this doesn’t seem like much reward for working hard for many years (as all good Slow Down and Savers are doing, I hope). It’s no wonder wealth inequality keeps widening when real wage growth for the average worker is so low. Well, as it turns out, there are some effective ways to increase your salary, and if you’re clever, you can still get rich as an employee – it just might take some time.

Pay rise vs inflation

Average annual inflation in the US has been about 3.23% between 1979 and early 2026. In the UK, it’s been slightly higher at ~4.1% annually. Wages have only just managed to keep up with inflation – (0.4% real wage growth per year in the US). This is good: it means the average employee is (slowly) getting richer relative to inflation.

However, things are different for the ultra wealthy. Since 1995 the top 0.001% of the world’s population (~richest 80,000 people) saw their wealth grow by an average of 5.9% per year between 1995 and 2021 (quite a lot higher than the average inflation of 2.24% per year for the US dollar during that time).

Are the ultra rich just lucky? No. They just know how to manage their finances properly (and it helps that they have a large gap between their fixed expenses and their income). If you want to properly build wealth as an employee, you’ve got to start managing your money like a multimillionaire – you’ve got to start running your personal finances like a business.

The good news is that, as a regular employee, you can still advance your career (and your pay) faster than average. However, it takes hard work, confidence and a little knowledge to achieve. Here’s what you need to know to get rich as an employee:

Be employable

First off, be attractive to employers in your early career. Yes, you should get good grades at school – employers only glance at them, but they provide a solid foundation. And you should absolutely work your ass off at university to academically achieve as much as you possibly can. But working hard on its own is not enough. Everyone works hard – maybe they didn’t get quite as good grades as you, but there still isn’t much to distinguish graduate candidates to an employer.

So, you should get involved in societies and sports at university. Anything extracurricular you can put on your CV. Getting a part-time job, especially one you can work during the holidays, is a good idea. You’ll earn money which will reduce the need for student loans while also gaining valuable workplace experience. Getting experience in the sector you want to work in is more difficult – try sending off a well-written CV to multiple employers asking for work experience. At this point, just take what you can get – even if it’s unpaid. If you don’t ask, you don’t get – there’s no harm in trying.

Not everyone wants to go to university. That’s fine too. There are still many jobs that pay just as well as ones that require a degree. The same principles apply here too, though – work hard at school and through any additional education you need to learn the skills for your career.

Look for the right employer

Okay, so you’ve given yourself a solid foundation to be employed. You’ll be attractive as an early-career employee to many companies. Maybe you’ve already taken a job and have some experience. At this point, you can afford to be a little more picky about who you work for. Do your research. You should look for employers that:

• Offer the career progression that you are after.
• Have a good working environment and fair pay. Check Glassdoor to see what other employees have to say.
• Are performing well financially, and have been doing so for some time. You can check Companies House to freely view the financial performance and balance sheets of any registered company in the UK.

The third point is important, as it means you’re more likely to receive good pay increases and the potential for faster promotions as the company grows. At this early stage in your career, you should have the flexibility to move to where the best work is. Be willing to apply to all the best employers you can find, even if they are in different parts of the country. And be willing to move to the employer if you get the job. Limiting yourself to only looking for jobs in your local area is going to seriously compromise your ability to earn a higher income.

Overachieve

This goes without saying. If you want to be noticed at work and advance faster than average, then work very hard. Overachieve in your role. Consistently perform to a high standard, as well as doing extra work which is not in your job description, and your employer is sure to notice. Here are a few suggestions:

• Always start work 30 minutes before your boss, but never work late or on weekends unless absolutely essential.
• Don’t take days off sick – unless you genuinely are.
• Know when you do your best work – morning, night, under pressure, relaxed; schedule and prioritise your work accordingly.
• Learn how to speak in front of an audience.
• Don’t procrastinate.
• Come to your boss with solutions, not problems. You are getting paid to think, not to whine.
• Be organised. Keep to a schedule and write down good ideas.
• Be comfortable around senior managers (or learn to fake it).
• Treat everyone with dignity and respect. Whether it be your direct colleagues, the cleaner or the managing director. Don’t ever be patronising.
• Continue to learn new skills. Take every opportunity you can to learn new things, and apply them to your job.

Negotiate your salary

So you’ve got a good job at a top employer and you work very hard – hopefully over-delivering on what is required of you. The likelihood is that you’ll already be getting higher-than-average pay rises just by doing this. And hopefully good compensation in other ways too, like a company-matched pension and a good bonus every year.

Another key skill to learn is how to negotiate your salary. ESI Money has written a fantastic article on how to ask for a raise. I recommend you read his article first. In my own career, I’ve had to negotiate and I haven’t always done it right.

Here’s what you should do:

• Be confident and have your facts straight. Make a list of the things you’ve achieved for the company in the previous year, including those that are outside of your job description. Confidently present those to your manager, and shine a positive light on what you have done.
• Do market research. Know what similar roles pay before you ask.
• Pick the right time. Don’t have the discussion after a major personal problem for your manager or during a period of poor company performance. This may just be seen as ungrateful.
• Practice. Do your research. Rehearse what you are going to say and the confident tone you are going to say it in.
• Aim high. Ask for a little more than what you think is appropriate, in the expectation that there’ll probably be negotiation from both parties to determine a fair raise.
• Ask your manager in person if they have time to discuss your career growth and compensation. Don’t make it a priority – give them a couple of weeks to come back to you, when the time is right for them. Be flexible to accommodate the meeting time into your own schedule.

And here’s what you should not do:

• Don’t threaten to quit to ask for more money. This might work in the short term, but will probably reduce your employer’s trust in you. You might find yourself slowly being replaced in the long term.
• Don’t act entitled. Don’t act like you deserve a pay rise. No one likes that person, and it’s the company’s decision about whether they want to give you a pay rise, not yours.
• Don’t send an email asking for a raise. Do it in person.

Know when to jump ship

If you keep getting a flat “no” when asking for a raise, and there is no hope of additional compensation in other ways; like time off, more flexible hours or a better bonus, it’s time to consider whether you’ll be more fairly compensated somewhere else.

In the UK in 2021, the average pay increase for an employee who changed their jobs was 9.5%. Job changes lead to larger pay jumps than internal raises; loyalty to your employer is rarely rewarded with big pay jumps. Knowing when to change jobs within the company or to find a new job elsewhere is a fast-track to salary growth.

Again, go through the process outlined above, in Look for the right employer. Hopefully you’ll end up back at a company that is performing well financially and where the employees are happy. This puts you right back on the path to success.

Make sure to ask for higher pay when they give you a job offer. Don’t just accept what you are given. Know your worth and always ask for more than you’re willing to accept.

Even marginal pay increases are significant over a lifetime

Annual increases of a small amount can have a substantial impact on your lifetime earnings. For the sake of argument, let’s assume you’ll have a 40-year working career (although hopefully if you’re reading this blog, you’ll have a much shorter career).

Emily takes a job at 22 years old earning £30,000 a year. How much will she earn over her lifetime? Well, this is why a slightly faster career trajectory can literally be worth millions:

• At 0% annual pay increases, Emily earns £1.20 million.
• At 1% annual pay increases, Emily earns £1.47 million.
• At 2% annual pay increases, Emily earns £1.81 million.
• At 3% annual pay increases, Emily earns £2.26 million.
• At 4% annual pay increases, Emily earns £2.85 million.
• At 5% annual pay increases, Emily earns £3.63 million.
• At 6% annual pay increases, Emily earns £4.66 million.
• At 7% annual pay increases, Emily earns £6.03 million.
• At 8% annual pay increases, Emily earns £7.83 million.
• At 9% annual pay increases, Emily earns £10.22 million.
• At 10% annual pay increases, Emily earns £13.37 million.

Small differences in annual pay growth compound massively. A single pay rise doesn’t just affect your salary for that year – it affects all future years from then on. Higher rates of 8-10% are possible early on in a career, but sustained 10% annual pay rises for 40 years would mean a £30k starting salary becomes £1.35 million by the end. This is, of course, unrealistic for most people.

Conclusion

Your career is your most powerful wealth-building tool. Most people accept the default path of small annual raises and hope it will be enough. But building real wealth as an employee comes from being deliberate – choosing the right job, developing new skills, negotiating with confidence, and knowing when it’s time to move on.

Even small pay increases will compound into something extraordinary over the decades.

The goal is to grow your income faster than inflation, avoid lifestyle creep and invest the difference. If you follow these principles consistently, you’ll get rich as an employee – not overnight, but over decades through deliberate action and compounding progress.

FAQ

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