How to Ask for a Raise if You Work in Tech
Negotiating your salary can be intimidating but DO NOT let that stop you, and never underestimate the importance of asking for what you deserve. Even relatively small increases in salary will compound over the years and can lead to hundreds of thousands, if not millions, of dollars in total future income. Below are some tips and tricks to maximize your salary (and more) during negotiations.
Add value and track it
You gain leverage for salary increases by providing massive amounts of value to your employer. Make sure to meticulously track the value you add to your organization so you can use the data in future salary negotiations. 80% of negotiations are won before they even begin, and they are won by providing value, tracking it, and communicating it effectively.
Do your research
Talk to colleagues, peers, recruiters, your financial planner etc. to get an idea of what you’re worth. You want as much information as possible on this. This is essential for understanding where you stand and what your value is to the company. We’ve listed some research tools at the end of this blog.
Negotiate for more than just your salary
Equity compensation, bonus, benefits, professional development, vacation, flexibility etc. can all be negotiable. Make sure to clearly ask what is negotiable. Generally, the more valuable to the company you are, the more flexibility you have when negotiating.
Get offers and gain leverage
Talk to recruiters and potentially explore offers from other employers. This will help you understand your value, and it can provide leverage for your salary negotiations. If you have multiple offers on the table, you have the leverage to negotiate aggressively.
Write down your employer’s needs
Why do they need you? What skills, talents, etc. do you have that are helping your manager and your company thrive? Write these down and be ready to discuss them with your manager. The goal is to write out how the value you provided has helped them and will continue to help them.
Write down your goals
Write down a number and aim high. If you expect more, you’ll usually get more. Discuss this number and anything else you’re asking for with a significant other, a colleague or your financial planner to increase your accountability. Finally, write down your number and keep it in your pocket when you walk into the negotiation to increase accountability.
Fear set
What’s the absolute worst thing that can happen by asking for a higher wage? You’ll usually realize that the worst-case scenario isn’t so bad, especially if you have other offers on the table. At worst, you’ll have a direct and honest conversation with your manager that will result in you knowing where you stand at the company and what it will take to get a raise in the future. If you don’t get the raise, then make sure that you walk away knowing exactly what is needed from you to get the raise down the road.
Be transparent, open, honest, and human
If you have other offers disclose this early, but also let your employer know if you would prefer to stay put. If you’ve done the research and you know you’re underpaid, then communicate this clearly and disclose your sources. If you love the company, their mission, and their values and want to stay put then state this early and often. Finally, just be human and explain why you want the raise. Perhaps you want to provide a better life for your family, take nicer vacations or save more for retirement. Whatever it is, don’t be afraid to state it and have a conversation about it. Don’t forget this must be accompanied with the reasons you’ve earned the raise and how you provide value.
Ask with confidence then stop talking and listen
Be assertive (but not aggressive). After you state what you are asking for, and the reasons you deserve it, then it’s time to stop talking and listen. Make sure to ask open ended questions and paraphrase to gain clarity while you listen.
Hire a coach
Coaches aren’t cheap, but they can provide a ton of value and are usually well worth the money. They can practice with you and help with confidence, research, industry specific knowledge and much more. This is particularly important if you’re new to negotiations or nervous about asking for a raise.
Focus on your future
Work to gain skill sets that are both valuable and rare. Work to become irreplaceable and you will have tremendous leverage for future salary negotiations.
Final Thoughts
Make sure to discuss pay raises often with your employer because closed mouths don’t get fed. We suggest directly asking your manager how you can provide more value to the organization and what things you need to do to get a raise. Write down the answers, track them and present them the next time you negotiate a raise.