You just found out you can make 10K at a competitor down the street. Before you hit print on from the Know Your Worth™ page and march into your boss’s office demanding a raise, here are four things you need to consider to ensure a productive discussion and positive outcome:
1. Know your company’s current compensation strategy.
At most companies, base salary is one piece of the Total Rewards/Compensation package which may include stock, health benefits, paid time off, maternity and paternity leave, retirement plans, insurance, continuing education, etc. It’s not uncommon for companies with excellent benefits to provide a slightly lower base salary. Step back and make sure you’re looking at the entire picture.
2. Know your value.
We’ve given you the tool to #KnowYourWorth based on your years of experience, the market for your role, and your current pay as compared to our data on pay in your area for similar roles. But reflect on the value you bring to the company. Consider your last review. Consider your wins. Be prepared with the information you need to support your discussion.
3. Know your company’s process for promotions and raises.
While not impossible, it’s rare to receive a promotion or raise off-cycle. What does this mean? Most companies have set times in the year where they conduct formal reviews and determine raises and promotions. There are many factors that go into these decisions. Everything from reviews by peers, your success meeting formal goals to market data on compensation to how much money your company actually has. For a small, cash-strapped startups, for example, it will be much harder for your to get the money. Not because you’re not worth it or not incredibly valuable to the company, but the money might just not be there. Remember, the best relationships are give and take.
4. Know what’s important to you.
Our research shows that Compensation & Benefits comes in fifth on a list of what drives employee satisfaction. What’s #1? Culture and Values. What’s most important to you? Is it flexibility? Great people? A fast paced exciting environment? Know what’s important to you. While salary is a good starting point, negotiations can and should be about more than just salary.
Knowing your worth is an important step when looking for a job and a company you love. It helps you understand more about your opportunities and is a key place to begin a search for a job and a company you love. Just as you’re a total package and more than just the work you produce, so too are companies more than just the base salary they exchange for a job well done. Be sure to take a little time to reflect on all the things that are important to you out of job. Understand how your company thinks about total rewards and compensation. Know what value you bring to your company. Be smart about your timing and make sure you drive the discussion to ensure you’re negotiating for the things that matter most to you.