Read on Twitter
I& #39;ve negotiated employee compensation countless times.
Most people make simple mistakes that cost them $1,000s.
Here& #39;s how to negotiate a raise and get paid what you& #39;re worth:
Most people make simple mistakes that cost them $1,000s.
Here& #39;s how to negotiate a raise and get paid what you& #39;re worth:
1/ The numbers are not in your favor.
- The average raise in 2022 will be 3%.
- Inflation made things cost 8% more.
So you worked harder but ended up poorer.
Just listen to @APompliano: https://twitter.com/apompliano/status/1425266569370812424">https://twitter.com/apomplian...
- The average raise in 2022 will be 3%.
- Inflation made things cost 8% more.
So you worked harder but ended up poorer.
Just listen to @APompliano: https://twitter.com/apompliano/status/1425266569370812424">https://twitter.com/apomplian...
2/ I know asking isn& #39;t easy.
- Some of you are humble & don& #39;t want to rock the boat.
- Others of you are prideful & want to be recognized on merit alone.
But in most cases, neither of these approaches will maximize your pay.
- Some of you are humble & don& #39;t want to rock the boat.
- Others of you are prideful & want to be recognized on merit alone.
But in most cases, neither of these approaches will maximize your pay.
3/ Why is it important to maximize your pay now?
One word: Compounding.
- Every extra dollar you negotiate this year is a dollar you& #39;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& #39;ll make each year in the future.
- Plus very few companies will reduce compensation for individuals because of the hit to morale.
4/ Let& #39;s make this real with some data:
If you make $50K today, here& #39;s how small %& #39;s add up:
- 3% vs 4% -> $33K more over 10 years
- 3% vs 5% -> $70K more over 10 years
That& #39;s 70K (more than a year& #39;s salary) because you got a 2% higher raise each year
Check out 10%
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đź‘€" title="Ogen" aria-label="Emoji: Ogen">
If you make $50K today, here& #39;s how small %& #39;s add up:
- 3% vs 4% -> $33K more over 10 years
- 3% vs 5% -> $70K more over 10 years
That& #39;s 70K (more than a year& #39;s salary) because you got a 2% higher raise each year
Check out 10%
" title="4/ Let& #39;s make this real with some data:If you make $50K today, here& #39;s how small %& #39;s add up:- 3% vs 4% -> $33K more over 10 years- 3% vs 5% -> $70K more over 10 yearsThat& #39;s 70K (more than a year& #39;s salary) because you got a 2% higher raise each yearCheck out 10% https://abs.twimg.com/emoji/v2/... draggable="false" alt="đź‘€" title="Ogen" aria-label="Emoji: Ogen">" class="img-responsive" style="max-width:100%;"/>
5/ So what& #39;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& #39;ll care less if you have more options.
Remember: https://twitter.com/naval/status/818630258916139008">https://twitter.com/naval/sta...
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& #39;ll care less if you have more options.
Remember: https://twitter.com/naval/status/818630258916139008">https://twitter.com/naval/sta...
6/ 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& #39;s on your mind.
- Forward them an article about your industry& #39;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& #39;s on your mind.
- Forward them an article about your industry& #39;s pay.
- Take on work the next level up.
7/ Every company& #39;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
8/ 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: https://twitter.com/sahilbloom/status/1418910006557265932">https://twitter.com/sahilbloo...
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: https://twitter.com/sahilbloom/status/1418910006557265932">https://twitter.com/sahilbloo...
9/ 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. Others 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. Others publish compensation data for DEI benchmarking. Ask for them both.
10/ Be respectful
I promise, your boss doesn& #39;t like this conversation.
They& #39;re in a tough spot, empathize with them:
- They likely got handed a limited budget.
- But it& #39;s really in their day-to-day interest to keep you happy.
If you& #39;re prepared, no need to surprise them.
I promise, your boss doesn& #39;t like this conversation.
They& #39;re in a tough spot, empathize with them:
- They likely got handed a limited budget.
- But it& #39;s really in their day-to-day interest to keep you happy.
If you& #39;re prepared, no need to surprise them.
11/ 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.
12/ Go back if needed
It stinks. But those who ask for a little more tend to get it.
- It& #39;s cheaper to keep you happy than lose you.
- It& #39;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& #39;s cheaper to keep you happy than lose you.
- It& #39;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.
13/ Don& #39;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& #39;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& #39;m NOT taking. But it has raised questions. Can we talk about my future here?
h/t: @BarbaraCorcoran
14/ If you& #39;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. https://maven.com/dave-kline/new-manager-accelerator/">https://maven.com/dave-klin...
- 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. https://maven.com/dave-kline/new-manager-accelerator/">https://maven.com/dave-klin...
15/ Want to go deeper?
There are surprisingly few helpful resources.
Here are 3 that are:
Get in the mindset ( @ryanstephens)
https://twitter.com/ryanstephens/status/1191729826253754368
Know">https://twitter.com/ryansteph... your worth ( @laurahelmuth)
https://twitter.com/laurahelmuth/status/980579387945967621
Build">https://twitter.com/laurahelm... leverage ( @heykahn) https://twitter.com/heykahn/status/1488561542639468545">https://twitter.com/heykahn/s...
There are surprisingly few helpful resources.
Here are 3 that are:
Get in the mindset ( @ryanstephens)
https://twitter.com/ryanstephens/status/1191729826253754368
Know">https://twitter.com/ryansteph... your worth ( @laurahelmuth)
https://twitter.com/laurahelmuth/status/980579387945967621
Build">https://twitter.com/laurahelm... leverage ( @heykahn) https://twitter.com/heykahn/status/1488561542639468545">https://twitter.com/heykahn/s...
