Right after, companies start to plan & budget the next year. And guess what the biggest expense is for most companies? – Dave Kline
I’ve negotiated employee compensation countless times. Most people make simple mistakes that cost them $1,000s. Here’s how to negotiate a raise and get paid what you’re worth.🧵
2/ Right after, companies start to plan & budget the next year. And guess what the biggest expense is for most companies? You. Their people. So if you deserve more money, now is your ideal moment to ask.
3/ I know asking isn’t easy. – Some of you are humble & don’t want to rock the boat. – Others of you are prideful & want to recognized on merit alone. But in most cases, neither of these approaches will maximize your pay.
4/ And the numbers are not in your favor. – The average raise in 2021 will be 3%. – Inflation made things cost 5% more So you worked harder but ended up poorer.
5/ Why is it important to maximize you pay now? One word: Compounding. – Every extra dollar you negotiate this year is a dollar you’ll make each year in the future. – Plus very few companies will reduce compensation for individuals because of the hit to morale.
8/ Plant seeds Your boss needs to hear from you well before any conversation about your raise. But be clever, not annoying. – Ask how the process works? Signal it’s on your mind. – Forward them an article about your industry’s pay. – Take on work the next level up.
9/ Every company’s comp process is different. Know it in detail to navigate it well. – Timing: Talk to your boss before she submits any numbers – Structure: Bonuses & equity usually have more flex than salary – Performance: Adjust your pressure based on company health
11/ Find Data Market data – Use @glassdoor, @payscale, @Levelsfyi to know your industry Peer data – Some people tend to talk. Hopefully you tend to listen. Company data – Many companies have pay bands. Other publish compensation data for DEI benchmarking. Ask for them both.
12/ Be respectful I promise, your boss doesn’t like this conversation. They’re in a tough spot, empathize with them: – They likely got handed a limited budget. – But it’s really in their day-to-day interest to keep you happy. If you’re prepared, no need to surprise them.
13/ Use logic not emotion Compare your job at your last pay raise to now: – New title – Better results – Special projects – Growth in responsibilities – Other meaningful contributions Now layer in what you learned about the market. And give a top band number if asked.
14/ Go back if needed It stinks. But those who ask for a little more tend to get it. – It’s cheaper to keep you happy than lose you. – It’s cheaper to finish the process than drag it out. This might surprise you: Some managers hold back just a little for this exact reason
15/ Don’t take another offer Risky move: I have another offer that pays more. Most bosses will wish you well & hold the door as you leave. Better move: I have another offer I’m NOT taking. But it has raised questions. Can we talk about my future here? h/t: @BarbaraCorcoran