9 Ways to Increase Your Income! The Fastest Route to Earning More Through Job Changes and Side Jobs

Many people feel dissatisfied with their current income or anxious about the future and are searching for concrete solutions. To increase your annual income, there are diverse options beyond simply aiming for promotion or a raise in your current job — including changing jobs for a better environment, or starting a side job to increase your income sources.

This article introduces 9 methods for increasing annual income organized by situation, and explains the most reproducible and shortest route.

3 Reasons Why Annual Income Fails to Increase

The reasons annual income fails to increase are not always solely a matter of an individual’s skills or effort. In Japan’s employment environment in particular, external factors that are difficult for individuals to control — such as the structure of the industry they belong to and the company’s performance evaluation system — have a significant influence.

To first take an objective look at your own situation, it is important to understand the reasons behind stagnating income growth.

Reason 1: The Salary Level of the Industry or Company You Work for Is Low

Annual income is greatly influenced more by the industry and company size you belong to than by individual ability.

For example, industries such as IT/telecommunications, finance, and general trading companies tend to have high overall salary levels, while the service industry and retail industry often remain at comparatively lower levels.

When working in an industry with a low salary level, or in a small to medium-sized company with a low profit margin, the reality is that it is structurally difficult to achieve a significant salary increase no matter how excellent the results produced. Because the upper limit of the company’s own salary structure is set low, there is a wall that cannot be overcome through individual effort alone.

Reason 2: The Evaluation System Values Years of Service Over Results

The seniority-based evaluation system that remains entrenched in Japanese companies is also one cause of income not increasing.

In companies with a seniority system, years of service rather than individual results and achievements become a major evaluation criterion, so even when young employees or mid-career hires produce significant results, there is a tendency for this not to be properly reflected in their salary.

While salary gradually increases with age, not being able to obtain evaluation and compensation commensurate with actual ability not infrequently leads to a decline in motivation. In an environment where effort does not directly connect to salary, an early increase in income is difficult to expect.

Reason 3: Not Being Able to Objectively Grasp Your Own Market Value

Internal evaluations within a company and evaluations in the external labor market (market value) do not necessarily align. When working at the same company for many years, people tend to become accustomed to their own company’s evaluation criteria, and the opportunity to objectively judge how their skills and experience would fare at other companies tends to be lost.

Without accurately grasping your own market value, it is unclear whether your current income is appropriate or whether there is a possibility of earning a higher salary. Without knowing your market value, it becomes difficult to take advantage of opportunities to move to a company with better conditions, or to advance salary negotiations at your current workplace favorably.

Common Traits of People Whose Income Tends to Increase

People whose income tends to increase share the following common traits.

People with these characteristics tend to have high market value, and their job searches tend to proceed smoothly.

9 Specific Methods for Increasing Annual Income [Organized by Situation]

In the modern era, there are various ways to increase annual income. Here, we introduce 9 things you can do to increase your income.

Method 1: Make a Career Change to an Industry or Job Type with a Higher Salary Level

One of the most effective ways to increase income is changing jobs to an industry or job type with a higher salary level than your current one.

For example, the consulting industry demands high specialist expertise while also offering high average salaries. Since some consulting firms recruit those without experience and second-career new graduates, a career change is entirely achievable.

If you feel you have reached the limits of your current industry’s salary levels, placing yourself in a growth market can lead to finding an environment that maximally values your worth, and a significant increase in income can be expected.

Method 2: Move to a Company with an Incentive System Where Results Are Easily Reflected in Salary

If you have confidence in your results and achievements, changing jobs to a company with a system that pays performance-based compensation (incentives) in addition to a fixed salary is effective.

In sales roles, marketing roles, and some specialist positions, systems are in place where salary varies significantly based on individual sales figures and level of contribution. Because effort directly connects to income, being able to maintain high motivation is a major benefit.

For those who feel they are not receiving fair evaluation in a seniority-based company, there is a possibility of growing income without a ceiling depending on actual ability.

Method 3: Change Jobs on Good Terms to a Growing Company Where Your Skills Can Be Leveraged

Startups and venture companies — companies that are growing rapidly — are constantly seeking talented people who can contribute immediately to support their business expansion, so there is a high possibility of being welcomed on good terms.

Additionally, because the organization is still maturing, there is the appeal of being entrusted with a responsible position at an early stage and gaining a direct sense of contributing to the company’s growth. There are also cases where non-salary compensation such as the future granting of stock options can be expected, and your own income is likely to increase significantly along with the company’s growth.

Method 4: Present Clear Results to Your Supervisor and Conduct Salary Negotiations

When wanting to increase income in your current workplace, salary negotiations with your supervisor are an effective approach.

The key to success is negotiating based on objective facts. Rather than vaguely requesting “please raise my salary,” clearly demonstrate your level of contribution using specific numbers — such as “sales increased by ○% year-on-year on the project I was responsible for” or “I improved a business process and succeeded in reducing costs by ○ hours per month.”

By targeting times when the company’s performance is strong, or the timing of your performance review, the likelihood of your request being accepted increases.

Method 5: Aim for Promotion or Advancement Within the Company

If you have an attachment to your current company and want to continue working there for a long time, aiming for promotion or advancement within the company is a steady method of increasing income. Moving up one position results in a guaranteed income increase, with both a base salary increase and a position-based allowance being paid.

For promotion or advancement, the first step is to deeply understand your company’s evaluation system and grasp what kinds of actions and results lead to promotion. Then, consult with your supervisor about your career plan, create a concrete action plan toward achieving your goals, and apply yourself to daily work.

Method 6: Take Advantage of Qualification Allowances and Incentive Programs

Making good use of the company’s benefit programs is also one way to increase income. Many companies have systems in place for employees who obtain specific qualifications related to their work — including qualification allowances added to monthly salary, or incentive programs that pay a lump sum when a qualification is passed.

This means skill development directly connects to increased income. Which qualifications are covered by the program varies by company, so first check the work rules and the human resources department’s regulations.

Method 7: Start a Side Job That Leverages Your Skills

Having multiple income sources rather than relying solely on company salary is also an effective option. By leveraging skills cultivated in your main work — such as writing, design, programming, and language skills — it is possible to efficiently earn supplementary income in your free time.

In recent years, companies permitting side jobs have been increasing, and crowdsourcing sites and skill-sharing services are well-developed, making it easy for anyone to get started. By first challenging small projects within a range that does not interfere with your main work and gradually building a track record, a stable second income source can be established.

Method 8: Manage Assets Through Stock Investment or Real Estate Investment

“Asset management” — earning income by having your assets work for you — also contributes to long-term income growth. Representative methods include stock investment, investment trusts, and real estate investment.

Since there is the possibility of generating income without selling your daily working hours, these are means that connect to future financial freedom.

However, most financial products do not guarantee the principal, and risks are involved. For this reason, it is wise to acquire sufficient knowledge before starting, and to gain experience starting with small amounts within the range of surplus funds.

Method 9: Start a Business or Go Independent to Earn Through Your Own Efforts

Stepping outside the framework of company employment to launch your own business, or going independent as a freelancer, is also an option. When this path is chosen, there is no ceiling on income, and depending on your own effort and ingenuity, earning unlimited income is not just a dream.

On the other hand, there are risks such as income becoming unstable, and the need to bear all responsibility for all aspects of the business — including accounting and sales — yourself.

Starting with a small business as a side job first and challenging yourself while keeping risk to a minimum, then seriously considering full independence once the business is on track can be said to be a realistic step.

2 Grounds for Why “Changing Jobs” Is the Shortest Route to a Higher Income

While there are multiple ways to increase income, “changing jobs” is particularly effective and tends to produce results in a short period of time.

Why do so many business professionals choose changing jobs as their means of increasing income? There are 2 clear grounds: a wall that cannot be overcome by simply continuing to work at the current company, and opportunities that can only be obtained in the external labor market.

Here, we explain in detail the reasons why changing jobs is the shortest route to a higher income.

Ground 1: A Significant Raise in Your Current Role Is Realistically Difficult

In many Japanese companies, salary tables and raise rates are stipulated in advance, and it is extremely difficult to significantly increase salary through individual results alone. Even if the highest evaluation is received, the annual raise is usually limited to a few thousand to a few tens of thousands of yen, and it is rare for annual income to increase by hundreds of thousands of yen at a time.

Because there are structural constraints from company performance and salary regulations, there are limits to what individual effort can achieve. By contrast, in a job change, negotiation is based on the current salary, making it not impossible to increase income by 10% or more — or in some cases by one million yen or more — through a single activity.

Ground 2: You Can Choose an Environment That Will Correctly Value Your Market Worth

Internal evaluations can be influenced by factors beyond ability — such as compatibility with a direct supervisor or interpersonal dynamics within the department. For this reason, it is not uncommon to feel that your skills and achievements are not being fairly evaluated.

In the job market, on the other hand, multiple companies evaluate candidates from an objective perspective. Cases where experience that was not evaluated at the current company is highly evaluated at another company as “exactly the skill we were looking for” — leading to favorable treatment — occur frequently.

The fact that you can choose for yourself the company that will value you most highly is a major benefit of changing jobs.

3 Tips for Making a Job Change to a Higher Income a Success

Strategic preparation and action are indispensable for making a job change aimed at a higher income a success. Simply applying haphazardly will make it difficult to obtain the desired results. There are several important tips on the path to success.

Here, we explain the concrete steps for receiving a job offer on favorable terms.

Tip 1: Consult a Recruitment Agent to Learn Your Objective Market Value

When starting job-hunting activities, begin by registering with a recruitment agent and consulting a professional career advisor. Rather than a subjective evaluation based on thinking alone, you can receive objective advice from experts well-versed in job market trends — about what level of salary your background and skills are worth.

This not only makes realistic goal-setting possible, but also greatly expands your activity options — such as being introduced to non-public job listings that you would not be able to find on your own.

Tip 2: Take Stock of Your Career and Put Your Strengths and Achievements Into Words

To accurately convey your value to hiring managers, a “career stock-take” — looking back on your career to date and specifically putting your strengths and achievements into words — is indispensable. Organize as concretely as possible — ideally using specific numbers — what kinds of work you engaged in, what challenges you solved, and what results (increased sales, cost reduction, etc.) you contributed to as a consequence.

Through a career stock-take, you will be able to give a persuasive self-promotion in your work history and in interviews, which connects to a higher evaluation from companies.

Tip 3: Have the Professional Agent Handle Salary Negotiations on Your Behalf

Salary negotiation — which takes place after an offer of employment is received — is the final hurdle for realizing a higher income. However, many people feel uncomfortable negotiating directly with a company, or are unsure about what amount to request.

If you are using a recruitment agent, the sensitive matter of salary negotiation can be handled on your behalf. Because agents understand the company’s salary levels and the background of their hiring needs, they are able to conduct accurate negotiations based on market value.

It becomes easier to extract more favorable conditions than negotiating individually, so this should be actively utilized.

Frequently Asked Questions About Ways to Increase Annual Income

Various questions and anxieties tend to arise before taking concrete action when aiming for higher income. Here, we address frequently asked questions about income increases that many people are likely to have, and provide concise answers to each.

Conclusion

To increase annual income, there are diverse options — from internal approaches such as promotion, salary negotiation, and qualification acquisition in your current role, to methods of increasing income sources through side jobs and asset management.

However, if the goal is the most effective and fastest significant income increase, “changing jobs” — moving to an environment that will correctly value your market worth — can be said to be the shortest route.

To achieve this, it is indispensable to first conduct an objective self-evaluation by utilizing recruitment agents and the like, and through a career stock-take to clearly identify your own strengths. Ultimately, since the current situation can only be changed through concrete action, the important thing is to start with information gathering first.