Estimated reading time: 4 minutes
I’ve mentioned before that there’s a Reddit sub called anti-work. It’s not really opposed to work, but instead points out some of the unexplainable things that employers do. Like tell employees they cannot talk about their pay. Just as a FYI – under the National Labor Relations Act, employees can talk about their pay. But that’s not the point of today’s article.
When it comes to discussing pay, especially if you’re trying to negotiate a pay increase with your employer, there are some things to consider.
Here’s what not to do:
DON’T threaten to quit over pay … unless you’re prepared to do it. Let me start with a piece of tough love here. Please do not give your manager an ultimatum. Sometimes, even when a manager wants to increase an employee’s salary, there are factors beyond their control. An ultimatum will only hurt your relationship and won’t get you what you’re looking for.
DON’T compare your pay to other people. Even though you can talk about pay with your coworkers, it would be inappropriate to use that information for your personal gain. When it comes to compensation, there are lots of factors to consider (see below) and there’s a good chance you don’t know them all. Your pay needs to be about your work performance. Not other people.
DON’T stop being a team player. I’ve seen many employees make this mistake. They have a conversation with their manager about pay. The manager isn’t able to do anything right away. The employee stops doing the little things. This looks petty and doesn’t help your desire to get a raise.
Instead, here are some things you can do:
DO understand what factors are tied to compensation. Your pay is based upon three things: 1) the company’s ability to attract talent, 2) the company’s ability to retain talent, and 3) the company’s ability to pay. Here’s what this means:
- If the company can easily attract top talent, they don’t need to pay more.
- If the company typically retains a majority of their top talent, they don’t need to pay more.
- If they company doesn’t do any of the above, but they don’t make enough revenue, they just can’t pay more.
DO think about pay in terms of the total package. Many companies are expanding employee benefits and perks to attract and retain talent (see above). All those items need to be included in conversations about compensation because they cost money. Employees need to think about how much they use the benefits that the company offers.
DO plan to discuss pay with your manager. And if you work in a matrix organization where you report to multiple people, then talk with both of your managers. Chances are high that your managers regularly discuss your performance and compensation. Also be prepared to talk about other options that might be satisfactory instead of a pay increase, such as additional vacation time or attending a professional development event.
I understand that employees are fed up about low pay, extra work, and lack of decent increases. Don’t let frustration be a factor for mishandling the pay conversation. Do the research and present a well thought out business case.
I wish I could say that following these steps will get you the pay increase you’re looking for. But there are no guarantees. What it will show your manager is that you’ve professionally presented a compelling reason to increase your compensation. And you don’t have to say it but it will also tell them that if nothing happens, it’s possible you’ll take action.
Managers don’t like losing excellent employees. Give them the information they need to sell your pay increase to their boss.
