I’ve negotiated employee compensation countless times.

Most people make simple mistakes that cost them $1,000s.

Here’s how to negotiate a raise and get paid what you’re worth.🧵

2/ Right after, companies start to plan & budget the next year.

And guess what the biggest expense is for most companies?

You.

Their people.

So if you deserve more money, now is your ideal moment to ask.

3/ I know asking isn’t easy.

– Some of you are humble & don’t want to rock the boat.

– Others of you are prideful & want to recognized on merit alone.

But in most cases, neither of these approaches will maximize your pay.

4/ And the numbers are not in your favor.

– The average raise in 2021 will be 3%.

– Inflation made things cost 5% more

So you worked harder but ended up poorer.

5/ Why is it important to maximize you pay now?

One word: Compounding.

– Every extra dollar you negotiate this year is a dollar you’ll make each year in the future.

– Plus very few companies will reduce compensation for individuals because of the hit to morale.

8/ Plant seeds

Your boss needs to hear from you well before any conversation about your raise.

But be clever, not annoying.

– Ask how the process works? Signal it’s on your mind.

– Forward them an article about your industry’s pay.

– Take on work the next level up.

9/ Every company’s comp process is different.

Know it in detail to navigate it well.

– Timing: Talk to your boss before she submits any numbers

– Structure: Bonuses & equity usually have more flex than salary

– Performance: Adjust your pressure based on company health

11/ Find Data

Market data – Use @glassdoor, @payscale, @Levelsfyi to know your industry

Peer data – Some people tend to talk. Hopefully you tend to listen.

Company data – Many companies have pay bands. Other publish compensation data for DEI benchmarking. Ask for them both.

12/ Be respectful

I promise, your boss doesn’t like this conversation.

They’re in a tough spot, empathize with them:

– They likely got handed a limited budget.

– But it’s really in their day-to-day interest to keep you happy.

If you’re prepared, no need to surprise them.

13/ Use logic not emotion

Compare your job at your last pay raise to now:

– New title – Better results – Special projects – Growth in responsibilities – Other meaningful contributions

Now layer in what you learned about the market.

And give a top band number if asked.

14/ Go back if needed

It stinks. But those who ask for a little more tend to get it.

– It’s cheaper to keep you happy than lose you.

– It’s cheaper to finish the process than drag it out.

This might surprise you:

Some managers hold back just a little for this exact reason

15/ Don’t take another offer

Risky move: I have another offer that pays more.

Most bosses will wish you well & hold the door as you leave.

Better move: I have another offer I’m NOT taking. But it has raised questions. Can we talk about my future here?

h/t: @BarbaraCorcoran