Navigating the Slippery Slope of A Salary Increase

The Crush Your Career Blog Series Continues

Jake and Nick meet regularly before work at a local coffee shop. Nick is a little further along in his career and he tries to help Jake along in his. However, one morning, the conversation took a different tone. Nick suggested that he was unhappy with his recent raise, but he negotiated a better one. He asked Jake about his raise and while Jake was hesitant, he revealed the amount. Nick quickly informed him that a new hire was making more money than Jake and he should have asked Nick for help in negotiating his salary sooner.

 The next day, Jake called me, his coach, for advice. He was angry about the pay discrepancy and asked me what he should do. He didn’t understand that his raise could have been negotiated, and he felt like he left money on the table.

I responded by first suggesting that he never discuss salary with anyone except his leader. He quickly let me know that “today’s generation is more transparent” about salary information. That may be true. However, Jake was happy in his job until he and Nick became more transparent. Comparison is, indeed, the thief of joy.

 Next, I asked Jake to assess his current situation. In summation, Jake’s situation is this:

·      His raise was significantly above market average.

·      He loves his company.

·      He really likes his boss.

·      He respects and admires his CEO.

·      His company is growing, and the future is very bright.

·      It appears that his organization, CEO, and his boss all think highly of Jake.

·      He has grown and developed exponentially since joining the organization.

Few people can check all the boxes that Jake can, even in this labor market. Since Jake wants to stay with his company, we talked next about how to negotiate future raises before they are awarded.

If you are in a similar situation to Jake, you might find what I taught him about asking for a promotion or a raise helpful. Here are the key take-aways.

   Do not compare your salary to someone else’s. Your salary is about your performance, experience and skills compared to market value. This should be the focus of any conversation with your leader or a future employer when discussing salary. 

    Talk about three key elements with your leader.

 Increased responsibilities What new responsibilities have you assumed since your last raise? Were you assigned additional teams? Did you complete a difficult project? Did you take on an additional function? Did someone leave the organization and their responsibilities were added to yours?

 Increase competency What competencies have you added since your last raise? Did you go to training and learn new skills? Did you compete an on-line course? Did you receive a new certification? Did you complete an advanced degree?

Demonstrated results Did you meet or exceed the goals of your role? Did you significantly contribute to positive results for your team and/or the organization? Can you quantify your contribution to the organization (revenue added, costs reduced, innovation added, talent selected, developed and retained)?

 In all 3 of these areas, be prepared to give examples and tell stories about your increased responsibilities, new competencies and demonstrated results.

Stay current on your market value. Use resources such as Indeed, LinkedIn and Glassdoor to keep current on the market value of your role with your experience and skills.

Consider other benefits above your salary. Don’t forget to consider other benefits beyond your salary when negotiating. Maybe ask for more stock options instead of cash? 

 Know when to stay and when to go. I generally coach clients to think carefully about leaving an organization if these elements are in place. 

They love their job.

   They love their boss.

   They love their company.

   The company loves them.

   They are growing all the time.

 Sometimes, it’s just not worth a few more thousand dollars when you are happy. However, when these things are no longer true, then it’s time to think about what’s next. (See my blog post: Should I Stay or Should I Go?)

Negotiating a raise or your salary is one of the trickiest parts of Crushing Your Career. Learn how to do it early and put it to practice and you will be much more confident that you are navigating your career well.

Learn more by reading my book: Crush Your Career: Ace the Interview, Land the Job and Launch Your Future