Want a Raise - Think Supply and Demand!

The laws of supply and demand can be applied to just about any situation that involves the exchange of money.  Right now the pilot shortage is in the news and the GAO says the cause is simple.  Pilots aren't paid enough to make it worth taking the job.  On that point they are right.

A decade ago it was radiologists and anesthesiologists.  Insurance companies agreed to pay more, hospitals started paying more and in a few years the problem was solved.

So how does this apply to you?

In simple terms you have two choices, you can either find a very high demand job that has low supply and go do it.  Unfortunately it isn't that easy.  Becoming a pilot for instance can cost upwards of $100,000 if you aren't lucky enough to get a military position first, and starting pay is just $20,000 per year.

Any questions why there is a pilot shortage?  At some point the pay will increase or the pilots will be replaced by computers.  Are you willing to make a $100,000 bet on the outcome?  Most aren't, and a few believe the pilotless plane is coming.  Winning as a pilot might be a short term bet.

The second choice is to make yourself so valuable at the job you have now that they can't afford for you not to be there.  This is the easy way to get ahead without having to pay for it.   I know people who never graduated high school and are millionaires from owning McDonalds.  The supply of those people is very very scarce, but they exist.

So how do you do that?  Think like a subcontractor.  Instead of asking for more benefits and pay, start by asking for more responsibility and better work.  Think of what your boss wants now and what he might want tomorrow and deliver it before he asks.

If you aren't ready to break out yet and start your own business or become an independent contractor, you can still use the laws of supply and demand to make sure your skills and work ethic are so far above the crown that you are a scarce commodity in your office.  Soon enough the pay, work schedule and benefits will come your way.