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Salary Negotiation
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.🧵
Most people make simple mistakes that cost them $1,000s.
Here's how to negotiate a raise and get paid what you're worth.🧵
1/ As year end approaches, so does that dreaded office ritual:
Performance reviews
I detailed the tactics you need to get the recognition you deserve.
Performance reviews
I detailed the tactics you need to get the recognition you deserve.
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.
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.
- 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.
- 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.
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.
6/ Let's make this real with some data:
If you make $50K today, here's how small %'s add up:
- 3% vs 4% -> $33K more over 10 years
- 3% vs 5% -> $70K more over 10 years
That's 70K (more than a year's salary) because you got a 2% higher raise each year
Check out 10% 👀
If you make $50K today, here's how small %'s add up:
- 3% vs 4% -> $33K more over 10 years
- 3% vs 5% -> $70K more over 10 years
That's 70K (more than a year's salary) because you got a 2% higher raise each year
Check out 10% 👀
7/ So what's the best way to negotiate?
From a position of strength.
How do you gain that against a large corporation?
- Stand out with excellent work
- Prepare like your life depends on it
You'll care less if you have more options.
Remember:
From a position of strength.
How do you gain that against a large corporation?
- Stand out with excellent work
- Prepare like your life depends on it
You'll care less if you have more options.
Remember:
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.
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
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
10/ Be biased
Cognitive biases: Usually your enemy. Now your ally.
- Availability bias: Data in your favor? Make sure they have it.
- Pygmalion Effect: They gave you high expectations. Do they same.
- Recency Bias: Make sure recent work shines
More:
Cognitive biases: Usually your enemy. Now your ally.
- Availability bias: Data in your favor? Make sure they have it.
- Pygmalion Effect: They gave you high expectations. Do they same.
- Recency Bias: Make sure recent work shines
More:
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.
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.
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.
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
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
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
16/ If you're a manager:
- Pay people well.
- Rewards your stars.
- Be honest in discussions.
- Have a fair & equitable process.
Need more help fine tuning your management system?
Join the next session of my New Manager Accelerator.
skillscouter.com
- Pay people well.
- Rewards your stars.
- Be honest in discussions.
- Have a fair & equitable process.
Need more help fine tuning your management system?
Join the next session of my New Manager Accelerator.
skillscouter.com
17/ Want to go deeper?
There are surprisingly few helpful resources.
Here are 3 that are:
Know your worth (@laurahelmuth)
Get in the mindset (@ryanstephens)
Step-by-step guide (@tundetash)
There are surprisingly few helpful resources.
Here are 3 that are:
Know your worth (@laurahelmuth)
Get in the mindset (@ryanstephens)
Step-by-step guide (@tundetash)
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