Despite rising corporate profits and inflationary pressures, wages have barely budged for most American workers. According to the Bureau of Labor Statistics, real wages (adjusted for inflation) have seen little growth over the past decade, leaving many employees frustrated and struggling to keep up with the cost of living. A recent analysis highlights that even in sectors experiencing high demand, employers are hesitant to increase base pay, instead opting for short-term incentives like signing bonuses.
If your company won’t give you a raise, how can you force their hand—and why should they care?
The answer is simple: training and workforce development. By up-skilling and expanding expertise, employees become more valuable–giving them the leverage to demand better pay. At the same time, businesses benefit from a more skilled workforce, lower turnover, and improved efficiency. Here’s how continuous learning helps both employees and employers break through wage stagnation and drive business success.
1. Prove Your Value and Justify a Pay Increase
If companies aren’t raising wages on their own, employees need to take action. One of the most effective ways to do that is by demonstrating an undeniable increase in value. Employers reward employees who directly contribute to revenue growth and efficiency. Developing advanced skills makes you indispensable, increasing the likelihood of a raise.
A study by McKinsey found that 87% of executives experience skill gaps in their workforce, yet many struggle to find external talent. Employees who proactively close those gaps stand out. AT&T, for example, launched its Future Ready training program to help employees gain expertise in AI and cybersecurity. As a result, those who completed the program were promoted twice as fast as their peers.
Why It’s Good for Business. Employers benefit from a more capable workforce without the high costs of external hiring. AT&T’s investment in upskilling not only boosted employee career growth but also reduced hiring expenses and improved internal innovation.
When you can quantify your value, your employer has a reason to invest in you—and the company benefits from a stronger workforce.
2. Gain Job Security and Leverage in Negotiations
Beyond proving your worth, training can also increase job security—something employers are willing to reward. Employee turnover is costly, with Gallup reporting that replacing an employee costs anywhere from one-half to two times their annual salary. Skilled employees who are less likely to leave become valuable assets, making companies more inclined to increase salaries to retain them.
Amazon’s Career Choice program, which covers 95% of tuition for employees pursuing in-demand fields, is a great example. The initiative has reduced turnover rates among participants by 20%, proving that companies see financial benefits in keeping highly trained workers. Employees who take advantage of these programs not only gain job stability but also position themselves for salary increases.
Why It’s Good for Business. Retaining trained employees saves companies money, reduces recruitment costs, and ensures continuity in critical roles. Businesses investing in education programs see lower attrition rates and higher employee satisfaction.
When companies invest in training, they’re also investing in retention—reducing costs while keeping top talent engaged.
3. Stay Ahead of Industry Shifts and Avoid Career Stagnation
The workplace is evolving rapidly, and those who don’t keep up risk being left behind. Technology and automation are reshaping industries, making lifelong learning essential for career longevity. A World Economic Forum report previously stated that 50% of all employees would need reskilling by 2025 due to automation; the trend seems to be following a similar outlook for 2030. Those who adapt stay relevant—and those who don’t risk career stagnation.
Walmart’s Live Better U initiative has helped thousands of employees avoid that fate by offering free college education and tech skills training. The results speak for themselves: Employees who complete the program earn an average of 8% more annually than their peers. Staying ahead of industry changes doesn’t just protect your job—it actively increases your earning potential.
Why It’s Good for Business. Companies that invest in re-skilling are more competitive, adapting faster to industry shifts. Walmart’s training program has helped the company fill thousands of positions internally, reducing reliance on costly external hiring.
In a changing economy, those who up-skill stay employed—and businesses that train their workforce stay ahead of the competition.
4. Improve Your Negotiation Power
Gaining new skills is only part of the equation—you also need to use them to your advantage when negotiating your salary. Employees who can articulate their value with measurable results have significantly more bargaining power. Harvard Business Review research shows that employees who can quantify their impact are 30% more likely to receive a raise.
Google’s Grow with Google program provides certifications in digital marketing and data analytics. Employees who complete the program have reported earning 20-30% more within a year by using their new skills to negotiate better pay. When you can demonstrate how your training directly benefits your employer, you make it difficult for them to justify not increasing your salary.
Why It’s Good for Business. Companies benefit from employees who bring measurable improvements in productivity and efficiency. Trained employees not only perform better but also contribute to higher overall business performance.
Employers pay for results. Training gives you the numbers to back up your worth—while delivering measurable ROI for businesses.
5. Get Promoted Faster and Increase Your Earning Potential
While negotiating a raise is important, advancing within a company often leads to the biggest salary jumps. Employees who consistently up-skill move up the career ladder faster, leading to higher long-term earnings. A study by LinkedIn Learning found that employees who regularly engage in professional development are promoted 39% faster than those who don’t.
Microsoft’s LEAP Apprenticeship Program has helped employees transition into higher-paying tech roles, with participants seeing an average salary increase of 40% within two years. Training doesn’t just increase your earning potential—it accelerates your entire career trajectory.
Why It’s Good for Business. Internal promotions save companies the expense of recruiting external hires while ensuring leadership continuity. Microsoft’s program has helped fill tech talent shortages while rewarding dedicated employees with higher pay.
The fastest way to higher pay isn’t waiting for a raise—it’s preparing for a promotion. And when employees move up, businesses thrive.
Take Control of Your Financial Future—And Help Your Company Thrive
Wage stagnation is a reality, but it doesn’t have to define your financial future. Investing in skill development gives you a competitive edge, increases job security, and provides leverage in salary negotiations. At the same time, companies that invest in workforce training gain more skilled, loyal, and productive employees—making it a win-win for both sides.
If your employer isn’t offering raises, make yourself irreplaceable—and force them to recognize your worth. The job market is changing. The workers who thrive are the ones who never stop learning. Will you be one of them?