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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/ 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
- 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
2/ 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 be 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 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'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.
4/ 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%
5/ 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: https://twitter.com/naval/status/818630258916139008
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: https://twitter.com/naval/status/818630258916139008
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'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.
7/ 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
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
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
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'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.
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'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.
13/ 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
14/ 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. https://maven.com/dave-kline/new-manager-accelerator/
- 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/
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 your worth ( @laurahelmuth)
https://twitter.com/laurahelmuth/status/980579387945967621
Build leverage ( @heykahn) https://twitter.com/heykahn/status/1488561542639468545
There are surprisingly few helpful resources.
Here are 3 that are:
Get in the mindset ( @ryanstephens)
https://twitter.com/ryanstephens/status/1191729826253754368
Know your worth ( @laurahelmuth)
https://twitter.com/laurahelmuth/status/980579387945967621
Build leverage ( @heykahn) https://twitter.com/heykahn/status/1488561542639468545
