4 ms·

Yes, there will be a time when this strategy does not work as well. Typically, big companies have salary bands per level which are set by HR (based on market an

by md_ 5y ago

Yes, there will be a time when this strategy does not work as well. Typically, big companies have salary bands per level which are set by HR (based on market analysis). While managers have some discretion on top (and may have more when it comes to RSUs), that discretion is somewhat limited--especially for those just starting out in their careers. Hence my comment that eventually it's just better to get promoted. Does it leave a bad taste in your manager's mouth? I don't know. That depends on your manager. ;) On the one hand, there's absolutely nothing wrong with demanding a fair price for your labor. You only have one life, and you're choosing to give a big chunk of it to your employer! And if you're underpaid, competing offers are great evidence to rectify that! On the other hand, don't make a threat you can't back up. If you told me your plan was to get competing offers that you actually find attractive and then take them if your present employer can't match them, I'd say that's a great plan. If you like your job and your team and don't want to switch, however, then I think presenting competing offers on a yearly frequency presents two potential challenges: 1. Your manager at some point may say, "Can't help you." They're not gonna fire you, but they may realize you're bluffing, so you won't be able to use this tactic in the future! 2. It way detract from talking about other, ultimately more important facets of workplace satisfaction, like working on projects you like, working with teams you like, etc.

mrkentutbabi 5y ago
Correct me if I am wrong, but how do you negotiate a raise without a competing offer? Seems like a losing battle from the start
- md_ 5y ago
  Nothing stops you from going to your manager (or, during your probably-annual comp discussion) and saying, "Based on {a conversation with my coworker, Levels.fyi, a competing offer}, I believe I'm being underpaid." Obviously this discussion has varying credibility depending on how serious you are about switching jobs, so a competing offer helps--but it also helps to know your manager's range of options. My general advice is to try to understand the range of options first. For example, you can ask your manager, "Can you tell me where I stand in the comp range for my level?" That will let you know how much base salary growth you can likely expect or negotiate for without a promo. Similarly, "If I have a competing offer, do you have leeway to make a retention RSU grant?" would be good to know. The key point is a) this isn't your manager's money, so they shouldn't be too personally invested in it, but b) they also don't have a huge amount of discretion and there's a lot of formula behind it, so understanding how the formula relates to you is a good start.

by md_ 5y ago

mrkentutbabi 5y ago

Correct me if I am wrong, but how do you negotiate a raise without a competing offer? Seems like a losing battle from the start

md_ 5y ago
Nothing stops you from going to your manager (or, during your probably-annual comp discussion) and saying, "Based on {a conversation with my coworker, Levels.fyi, a competing offer}, I believe I'm being underpaid." Obviously this discussion has varying credibility depending on how serious you are about switching jobs, so a competing offer helps--but it also helps to know your manager's range of options. My general advice is to try to understand the range of options first. For example, you can ask your manager, "Can you tell me where I stand in the comp range for my level?" That will let you know how much base salary growth you can likely expect or negotiate for without a promo. Similarly, "If I have a competing offer, do you have leeway to make a retention RSU grant?" would be good to know. The key point is a) this isn't your manager's money, so they shouldn't be too personally invested in it, but b) they also don't have a huge amount of discretion and there's a lot of formula behind it, so understanding how the formula relates to you is a good start.