The Business of Negotiating Your Raise
Introduction
In observance of Equal Pay Day, divhersity has compiled a series of articles that address questions focused on equal pay, with the goal of helping women specifically, close the pay gap that is all-too-often present in organizations worldwide.
This article is the last of a multipart series based on a Q&A session hosted by divhersity called “How To Ask for What You Deserve”. In the series we will be sharing the questions and answers provided by our expert panel: Savvithri Sivaraamakrishnan from Qualio, Meenakshi Tripathy from Facebook and divhersity Founder, Nidhi Gupta, formerly Chief Product Officer at Hired.
Q & A Part Three:
Negotiating Your Next Promotion
If you are preparing for or considering asking for a raise or promotion, and you’re a member of the divhersity community, please book a free, private session with a salary expert. This will help you gain clarity on what your comp plan should look like based on current market data.
Thanks to social conditioning and gender stereotypes we know that negotiating for many women is a challenge. Add to that the fact that women are all too aware of the potential social backlash that might occur from being a firm negotiator, the odds feel pretty stacked against us. But change is gently taking shape and as we see more and more women succeed in negotiating competitively, we can contribute to that change, one successful negotiation at a time.
In this article we’re going to start on the topic of negotiating from within, not a new role, but a promotion or salary increase in an organization that you’re already a part of. This introduces a few interesting twists; we have the fact that you might have more inside information gleaned from co-workers, existing relationships that you don’t wish to disrupt as well as an understanding of existing biases or inequity. And while you cannot be expected to take on changing the system, your successful negotiation paves the way for others. We want to equip our membership to be the most effective agents of change that they can be.
When I ask for or receive a promotion, should I ask for a specific salary and package?
MT: FAANG companies are very set in their calculators so it depends on your company. In companies where you can negotiate, you should do your homework to know what you’re working with. Facebook doesn’t have much room for negotiation so understand where there can be levels and base your strategy off that.
NG: Yes, do your research; make sure that what you want is aligned with the existing comp plans and if it’s not, evaluate your options. That could mean making a move to increase your overall position or, pursuing a change in role so that you can move into the salary range that you want. It’s all about weighing up your options, right? But to do that, you’ve got to put in some time and thought into what is most meaningful to you and whether your desired trajectory fits with the org you are a part of.
I am an Engineering Manager and I am currently paid at the middle of our salary band. My review is coming up and based on feedback I have received so far, I think I deserve to get paid towards the top end of the salary band. How should I approach this conversation with my manager? As for a promotion, I am not sure that I deserve it. Should I ask? If so, how?
SS: The first piece of advice I would offer here is to do your research and be prepared. Figure out where you want to be and ask for this number. Lay the groundwork WAY in advance of the meeting. Some companies start the review process months in advance and managers often have a few people in mind to give a raise or promotion to. Don’t wait, start months in advance. If the answer is “not now,” get a clear timeline on when your raise or promotion can happen.
MT: Early in my career, I was getting little raises with my promotions. I needed to get a sense of what was out in the market. The advice I received was to know your salary band and do your homework but also to get market signals. Build the framework from outside signals so you can understand when you’re going to get there in your current company. Whether you get the raise or not, you have a signal as to whether you need to consider a new role in a different company. I was given a 3% raise, which was really frustrating so I looked outside and received 2 offers within 2 months with a 25-30% increase. I was on an H1B Visa at the time which made changing employers a little more complex, but I knew I was worth more. I shared the offers with my boss and within 24 hours he gave me the 30% raise and an on-the-spot bonus. You have to know if you’re ready to walk out. The two offers have to be viable and where you would want to go in the event they don’t want to meet your request.
NG: We have to change the narrative in our heads. Men say, “I can do all of this” and they get hired, which is why men are in top jobs with more pay. We need to do the same.
My manager agreed to give me a $10K bump but then said the CFO would only approve $3k.
SS: Its your manager’s job to push back on the CFO. I would just ask your manager “Is this the best you can do for me?” as they have to make your case to their CFO. It makes men very uncomfortable and lets them know that you know your worth. You’re asking your manager, who should be your biggest cheerleader, so you’re challenging their capability by holding them accountable.
My second tip, which I had to learn and practice, is that nothing is better than an awkward silence. Sit tight and let that person fill in the awkward silence. My husband shared this strategy with me and it has worked like a charm.
If you are in a negotiation and want to stay, be prepared to meet them halfway; assess the amount on the table and decide if it’s worth moving to earn an additional $7k. Now it might also occur to you at this stage that your manager’s inability to advocate for you effectively is worth moving. That’s your decision; your first few managers are not going to determine your career trajectory, so is the experience you gain more important than the $7k? It’s very important to know if you are willing to walk away as this is very important leverage. Things can change in 6mo, for example, so be aware of the variables.
MT: Yes! The power of the pause! There are also many benefits outside of salary that you could negotiate for that have more value than the $7k (vacation days, for example).
I’m uncomfortable with the culture of getting promoted based on outside offers.
SS: The first thing I want to offer here is that you consider this: this is business, it’s not personal. Sometimes the only way to get what you’re worth is to present the outside offer - the company can’t afford to lose you. Consider that it costs them so much more to replace you; between loss of productivity as well as the cost to recruit, your company will most certainly experience measurable loss if you leave. An outside offer provides you with the very real leverage that will motivate your management to assess a very realistic loss.
NG: You can have an offer in hand and a counter will immediately come your way.
SS: Most women don’t do this, however, men do it all the time. Women may think it’s not a nice thing to do or is morally/ethically wrong. Do what you need to do. It’s business.
MT: Some companies do respond to counter offers, which doesn’t represent the company in the best light but you have to look at it as “It’s just business.” Frame the discussion on the value you bring the company, while asking what value can the company bring to you? When I started on this journey, salary bands didn’t exist. I always framed these discussions from the perspective of equal value to me and the company. Knowing your worth makes the framing easier.
I had one direct report who was great with people and wanted to move into a manager role. I didn’t have a manager role to give her but I was able to create a “lead role” for her because she asked. Take the initiative and ASK.
NG: How do you start that conversation?
MT: I would suggest that role play will benefit here. It might seem awkward at first but there are VERY real benefits to using role play to get better at this part of the negotiation. Role play can help you develop some muscle memory for when you are in front of your manager. Work through your discomfort ahead of time and find your zone! So, let me just show you how I approached a similar situation.
I said to my manager: “I just completed a 3 year product strategy, put in many hours to get the engineering team aligned and we successfully delivered 3 big things: 1, 2, 3…. I feel like we should have a chat about the next steps for me. We talked about this 2 months back, in light of these consistent successes, I’d like to set some goals for the future as well as discuss a salary review.”.
NG: Virtual Mic Drop! Well done, Meenakshi!
I did not get what I wanted from my negotiation. Now I feel guilty for asking. What should I do?
NG: NO! You don’t need to feel guilty. Remember, it's just business. And secondly, even if things do not go well this time around, before you close the loop, you should set expectations for a follow through, just like Meenaskhi demonstrated above. Being persistent really helps. By telling your manager when you expect to revisit and then actually following through sends a very strong message to them. They can’t just brush you off or make idle promises; you will be persistent because this is important to you. Your manager isn’t going to work out what’s important unless you make it very clear. And you can only make it clear by speaking up and following through.
MT: Even if your negotiation doesn’t go the way you want it to, there is still value as you learned an important lesson … clear and firm communication gets the message out there! This is hugely valuable.
SS: I will offer another perspective. I was given a 2% salary increase as part of a promotion and I was so livid I walked out of the conference room. I was so upset I said, “This is supposed to be a promotion? I’m sorry, I’m confused.” The skip level boss came and talked to me and said he’d make it happen. I told him, “I was the best performer, how could you do this to me?” In a couple months I received a pretty significant raise. I learned a great lesson … ASK!
I am pregnant. I don’t think I can ask for a raise now given that I will be going on maternity leave. Can I?
MT: Even if you’re pregnant you still have to negotiate. I got my promo in Sept and had my son in Oct. As long as you’re adding value, negotiate like a man.
SS: I viewed my maternity leave like a planned vacation; NOT an inconvenient interruption as is often the case. It has nothing to do with the value I bring to the company. I told the company, “There is a baby on the way, but it isn’t going to impact my contribution or value. But if you don’t want to hire someone who will be off for a few months after being only weeks into the job, that’s fine.” I had other offers so I had confidence to negotiate.
NG: Think about it this way; do you think a man would not ask for his raise in the same circumstance? You better believe they would.
How do you negotiate when you’re a proven high performer but need to build your business case for a promotion?
SS: Be prepared to make your case. One of my best managers once told me that I was the best performer and that I totally deserved the promotion and salary increase. However, he could only give me one. He asked me to pick the title or the salary. I was furious! I worked my ass off and earned the title AND the compensation increase. I said, “The title is the no brainer as my responsibilities go way beyond. In addition, this is how long I’ve gone without a raise and if I’m the best on the team, why do I not get both?” He was getting push back from those above him so I told him that I will build the case for myself for you. I refused to take either/or as I earned both and I actually got both. Sometimes, you just have to push your managers. At times I was doing the work of 3 people and you’re kidding me to have a discussion about one or the other. My boss knew I was furious. It was insulting as I knew that I deserved both so they better give it to me and they did.
NG: I don’t know if I could have been as strong to my manager. I’d be hesitant as I wouldn’t want to sour the relationship. Should I worry about that?
SS: Not at all. This is business, it’s not personal. I still have an excellent relationship with that manager. If it does then your relationship with that manager is based on you being agreeable and malleable; which is not a great place to be, to begin with. Remind yourself this is just business and remind yourself that your manager has the relationship to nurture too. If they’re bypassing your needs then you should be reevaluating whether this is a relationship that’s working for you. Your positive working relationships should not be contingent on you being a pushover!
MT: The reality is that a good manager will respect you more for advocating for yourself.
Is sticking around six more months to get a promotion before leaving a smart move?
SS: It depends as so many things change in six months. Your manager could make promises and end up not being at the company in six months. However, once you have the title, it is easier to move laterally than having to look outside for the promotion.
MT: Start the process and do your homework now to learn what you’re worth outside.
NG: Odds are, you will get a greater bump outside vs. getting promoted inside. You can use the offers to get a better package and the interview practice will only help hone your skills.
I recently had another reorg announced and I went from leading 2 teams to leading 5 teams and 2 more may come later. This shows that I have proven myself but how to negotiate for a Sr. Director title promotion?
MT: Help your manager see the “MORE” that you’re doing above your current level. Then talk about how you can get to the title, given you’ve been doing the work for x number of months. If the company does not have rigid levels, the negotiation will be much easier.
SS: Two techniques I would suggest and you need to have a really good pulse on how your manager thinks and operates. (1) Tell me how I can get there, let’s talk about titles and goals. Ideally, you have this discussion 6mo before the review cycle. Then do checkpoints on the milestones. Be a constant buzz in your manager’s ear so they know you are holding your manager accountable to that. (2) Make sure you do the job first and then ask for the promo/comp bump. Great managers don’t wait for review cycles and will champion for someone who is really kicking ass. Do an amazing job and then you go ask for it.
MT: If you do an amazing job, ask for it and don’t get it, that is your signal to start looking for a new opportunity.
Takeaway Points
Negotiating your promotion or salary increase is not personal, it’s business.
Hold your manager accountable; always follow up on any conversations and remind them of any commitments they made in the past.
Do your research and even have a new job lined up in the case your negotiations don’t get the results you want.