5 ms·

I don't know your value, so, a counter argument to consider. A company is not going to pay more than they have to. So, are you easily replaceable at your curre

by RogerL 11y ago

I don't know your value, so, a counter argument to consider. A company is not going to pay more than they have to. So, are you easily replaceable at your current compensation package? Then they really have little incentive to pay you more than that. Okay, it is hard to hire, and it is hard to have somebody walk away, but as an employer we are already used to revolving doors, so you know, we'll try to keep you, but not try too hard. "I'm making $150K and think I am worth $220K". "okay, I'll hire somebody else at $150K". Not saying that is the position you are in, but if you walk in to negotiate a raise you need to understand what your replacement cost is, not just how much value you contribute. If your contribution is worth $10M/year, but a replacement can be hired for $50K (exaggerating to make a point), don't expect an ask for $750K to be honored even if that is 'cheap' compared to the value you add. If you are contributing at the level you say you are, you should be able to make a strong case ("replacing me will cost you 2x my current salary").

logcounter 11y ago
Thank you for the counter argument. Regarding making a strong case, I of course know that this is a business, but how can someone go about negotiating an extremely large raise without damaging the relationship? How does an employee get around the anchoring of their current salary?
- artmageddon 11y ago
  One of two ways: Come up with very very compelling reasons that you deserve said big raise by demonstrating what value your accomplishments for the company, and even if you have very very good justification, you could simply be told "Well we'd LIKE to, gee that'd be great, but sorry it's not in the budget." ... or ... Move. Go somewhere else. Get a different job. If you feel like you're not being valued enough, there may not be a whole lot you can really do, and sometimes it simply isn't worth your trouble to wait for the next quarterly/semi-annual/annual review to talk about your accomplishments / compensation. I'll share some of my personal experience-last year I was in the same position in which I was really growing to dislike my work. In the fall, I had started looking for new jobs, and by some stroke of luck, I pulled off a hat trick by having three job offers simultaneously. One was offering a 15% raise, the other a 25% raise, and the other a 47% raise. I didn't take the first one because the other two made me feel greedy, but I didn't take the other two because it would've meant too much time away from home with travel. At the end of the year, the company I stayed at only gave me a a 1% raise(yes, one percent)(I didn't have a good performance review, but even in past years with good reviews I only got 2.5% at best). I had gotten another offer in January 22% raise, but given a long commute and meager vacation time, I declined. Fast forward to late April, the company then laid off 20-something people, including myself. Luckily, I was just able to secure a new job that I'm starting on Monday, with a 19% raise(not including the 10% bonus, to boot), no change in commute, and 4 weeks off. Be proactive and look out for yourself. Go out and interview, keep your options open. Never assume they have your best interest at heart.
  - Bahamut 11y ago
    This comment is spot on - I'd like to add that you have to be ready to potentially switch jobs if you are in this situation. To add to this, I thought I would be at one company for years - I did interview around at one point to test the market, and found that I could easily make at least $50k more than I was. One day, I was all of the sudden fired for a mistake that was exposed from bad QA and bugfixing process. At that time, I had already started testing the waters again because I started to be dissatisfied with the processes and the lack of interest in fixing the fundamental problems. The things I learned is to not get complacent and that employers truly are not loyal to their employees.
    - artmageddon 11y ago
      Agreed. I stayed at my first job for 6.5 years, and only saw my salary go from $54K fresh out of college to $67K. Granted, a few years of that were during the 2008 financial crisis, but this was at a major investment bank, which to me felt absolutely ridiculous. Also, agreed on the not getting complacent. Companies/recruiters love to tell you that they want someone who sticks around and doesn't job hop, but they tend not to provide you with incentives(i.e. steady growth in pay, extra vacation time, etc.) at a rate that could be gotten by switching companies.

by RogerL 11y ago

logcounter 11y ago

Thank you for the counter argument. Regarding making a strong case, I of course know that this is a business, but how can someone go about negotiating an extremely large raise without damaging the relationship? How does an employee get around the anchoring of their current salary?

artmageddon 11y ago
One of two ways: Come up with very very compelling reasons that you deserve said big raise by demonstrating what value your accomplishments for the company, and even if you have very very good justification, you could simply be told "Well we'd LIKE to, gee that'd be great, but sorry it's not in the budget." ... or ... Move. Go somewhere else. Get a different job. If you feel like you're not being valued enough, there may not be a whole lot you can really do, and sometimes it simply isn't worth your trouble to wait for the next quarterly/semi-annual/annual review to talk about your accomplishments / compensation. I'll share some of my personal experience-last year I was in the same position in which I was really growing to dislike my work. In the fall, I had started looking for new jobs, and by some stroke of luck, I pulled off a hat trick by having three job offers simultaneously. One was offering a 15% raise, the other a 25% raise, and the other a 47% raise. I didn't take the first one because the other two made me feel greedy, but I didn't take the other two because it would've meant too much time away from home with travel. At the end of the year, the company I stayed at only gave me a a 1% raise(yes, one percent)(I didn't have a good performance review, but even in past years with good reviews I only got 2.5% at best). I had gotten another offer in January 22% raise, but given a long commute and meager vacation time, I declined. Fast forward to late April, the company then laid off 20-something people, including myself. Luckily, I was just able to secure a new job that I'm starting on Monday, with a 19% raise(not including the 10% bonus, to boot), no change in commute, and 4 weeks off. Be proactive and look out for yourself. Go out and interview, keep your options open. Never assume they have your best interest at heart.
- Bahamut 11y ago
  This comment is spot on - I'd like to add that you have to be ready to potentially switch jobs if you are in this situation. To add to this, I thought I would be at one company for years - I did interview around at one point to test the market, and found that I could easily make at least $50k more than I was. One day, I was all of the sudden fired for a mistake that was exposed from bad QA and bugfixing process. At that time, I had already started testing the waters again because I started to be dissatisfied with the processes and the lack of interest in fixing the fundamental problems. The things I learned is to not get complacent and that employers truly are not loyal to their employees.
  - artmageddon 11y ago
    Agreed. I stayed at my first job for 6.5 years, and only saw my salary go from $54K fresh out of college to $67K. Granted, a few years of that were during the 2008 financial crisis, but this was at a major investment bank, which to me felt absolutely ridiculous. Also, agreed on the not getting complacent. Companies/recruiters love to tell you that they want someone who sticks around and doesn't job hop, but they tend not to provide you with incentives(i.e. steady growth in pay, extra vacation time, etc.) at a rate that could be gotten by switching companies.