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?
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?