In this post, I will show you how most bosses think about employee compensation, so you can use it to your advantage. The information I provide in this post will help you understand how to negotiate a better salary and benefits package for yourself.
Securing your financial future is more important than getting paid what you are worth and your lifetime earnings are impacted by every raise that you get. If you want to make sure that your skills are always in demand, it is important to negotiate for higher pay whenever you can.
Your base salary affects your future earning potential. If you want to increase your earning power in the future, you have to make more money today. Most millennials are underpaid in their roles, but few do anything about it. You can.
You need to hack your boss to get a raise. Ask for a meeting to discuss your current salary and what you can do to increase your value to the company. Understand how bosses think to hack your boss. You need to know how to exploit their vulnerabilities. You can improve your chance of getting a raise. It’s important to make a compelling case for why you should get a raise.
1. Calculate your market value
I try to keep track of the employee’s market value as an employer.
Market value is what another company would be willing to pay you. Knowing your market value can be used to negotiate a higher salary in a competitive job market. Some jobs are in high demand. Employers are willing to pay a premium for skilled workers. It is difficult for me to run a digital marketing agency because of the high demand for talent. To ensure my business is successful, I have to hire the most skilled and creative professionals.
They know it. They know they have a responsibility to the environment and are committed to protecting it. My employees get messages from recruiters who offer higher pay. This helps to create loyalty among my employees and encourages them to stay with the company even when faced with better offers from competitors. If you are lucky enough for this to happen to you here’s my advice:
Hack 1: Ask the recruiter what the salary range is for the position. If the recruiter is unable to provide a specific salary range, you may need to consider if this position is right for you. Print out their message and send it to your boss. The message should be tailored to your boss’s expectations. Ask for the upper bound of the salary range. The company is offering a competitive salary range for the position; however, they have not provided an exact number.
It will work most of the time. There is always a chance of unexpected results. Your boss will probably give you a raise to stay. Don’t get greedy and ask for more than the range the recruiter shared. Make sure you understand the full value of the position and that you are paid fairly for your experience and skills.
You still need to determine your market value even if you don’t get contacted by a recruiters. You need to know what other people in your city make. Glassdoor and Payscale can help you determine this information. You can do this easily by doing some simple research using the GlassDoor personalized salary estimate tool.
You need to look for other data on salaries in your industry after using the GlassDoor tool. You can use other resources to research salary trends and average salaries for various roles in the industry. You can find this information by looking at research put out by recruiting firms. Firms publish salary guides for most industries. Valuable insight into what employers are willing to pay for certain positions can be found in the salary guides.
Here is a good one for advertising, creative, and digital marketing salaries is published by the Creative Group and free to download. A guide to calculate salaries in your city is included. Ensuring fair wages for all is something this guide will help you to do. (ex. If you live in New York, calculate the average salary by 1.7x. In the US, the average salary for a software engineer is $105,000 per year. There probably will be a report when you search for your industry salary guides. The salary guide can be used to compare salaries in different places.
Hack 2: Print out the salary data from GlassDoor and the salary reports that you find for your industry. This will give you an idea of what your salary should be. When you meet with your boss, save them. Explain that you would like a raise and that you used the relevant date to calculate your market value. I have researched the market value of someone with my experience and qualifications as of the date of this letter, and I believe that I am currently underpaid for my role. For your position in your city, ask for a raise that puts you in the 50th percentile of salary ranges. If you are asking for a raise, you need a well-thought-out plan to explain why you deserve it. Don’t ask for more than a 10% raise and don’t get greedy. If your company value is remarkably high, there is only one exception. You should always strive to increase its value by making improvements and adapting to changing market conditions.
2. Calculate your value to your company
The value of your company is the second type of value you need to calculate. This information can help you demonstrate your worth to the organization when you are considering a raise or promotion. I am going to show you some of the calculations that upper management and bosses do. This knowledge can help you understand how decisions are made in the workplace. This is more difficult than calculating your market value, but here is how to do it.
Try to figure out howmuch it would cost to replace you. When estimating the cost to replace you, it’s important to consider the value of your skills and experience. Most industries have a high cost of hiring a new employee. When making decisions about employment costs, it is important to consider the long-term benefits of a new hire. It can cost between $2,000 and $25,000 to replace you. It’s important to make sure you invest in the right people from the start because it can be time consuming and expensive. Doing some simple research based on your role and salary (good article on the cost of losing an employee here) and you can roughly calculate what it would cost to replace you.
If you have calculated what it would cost to replace you, then you need to save that number, but don’t share it with your boss. You can use this number to negotiate a higher salary in the future. If one of my employees told me – “I want a raise because it would cost $12,500 to replace me,” I wouldn’t be happy. I would be less happy if I couldn’t make the right decision.
It would cost a lot to replace you. When asking for a raise, use this to your advantage. You should get a raise based on the cost to find a replacement. I think it would be beneficial for the company to give you a raise. If it cost $10,000 to find your replacement, your boss would give you a $3,000+ raise. It’s worth it to keep an employee who brings so much value to the team.
How much money is your company making off of your work? The total profits can be calculated by subtracting the cost of goods sold from the total revenue. How much money have you made? How long have you been with the company and what challenges have you faced?
If you work in a law firm, ad agency, or other field where you have a personal or blended hourly rate your company charges for your time then this should be easy. You can add your hourly rate to the invoice and explain what you did for the fee. It should be easy if you know how much business you have generated and closed. You can plan for future sales success if you have a good understanding of your sales funnel.
If you work in a blended rate environment, you should multiply your rate. The blended rate may vary based on the type of trip you are taking. $6,000 x 50 working weeks in a year is $300,000. It can be used to cover living costs, save up for the future, or invest in a business. This is the amount of money you are billing your clients. Depending on the scope of work and the complexity of the project, this figure may change. Your company is getting 6x on your time if you make $50,000 a year. It is an attractive proposition for your employer to invest in your development as it can have significant returns. When the margin on your time is at least 3-4x, your boss will likely give you a raise. As efficiency and work quality increase, so does the potential for a larger raise.
If you have less than 20% commission on your sales, then you should ask for a raise. I have personally met many people who only get a small commission. Your boss and your company are getting a good return on their sales. A high return on investment is provided by your sales performance. If you weren’t there, they wouldn’t have that money. The extra revenue is a direct result of your hard work and dedication to the company. If you are a good salesperson, most bosses will give you a higher commission at the risk of losing all of your sales. If you leave without having built up a customer base, you could end up with no commission at all. You should negotiate for at least a 15% commission. If you’re willing to stand your ground during the negotiation process, you’ll be surprised at how much you can get.
3. Ask for the right amount to improve your odds
If you ask for more than a 5-10% raise, you are less likely to get a raise at all. Make sure you understand the financial limits of your employer before asking for a raise. If you find that you are being wildly underpaid based on your market and company value research, then 10% is the perfect amount to ask for. You can ask for a raise that pays you at least the market rate for your position if you find that you are really underpaid. It is important to remember that in the process of asking for a raise, you should be open and honest with your employer about why you are requesting an increase. If one of my employees did this but couldn’t because they are all getting paid market rates, I would consider bumping them up.
You could get a raise of 20% to the market level just by asking if you are getting paid enough. If you don’t know what your market value is, you can use the data to back up your request for a raise. That is an incredibly high return for asking your boss for a raise. If you can demonstrate your value to the company, you can negotiate a larger salary.
4. Find the perfect time to ask for a raise
Many employees don’t know when to ask for a raise. Many employees don’t know that they can negotiate a salary increase with the help of resources. They might ask at the wrong time. They may not get an answer if they don’t know what information is most important or if they don’t explain their own perspective clearly enough. It can have a huge impact on whether or not your boss agrees with you. It’s important to say your request in a respectful way.
It’s not a good time when your boss is stressed out. On a It’s not a good time to be Friday before a holiday. Your boss doesn’t like Monday mornings so they’re not good. Getting through the morning is usually all you need to find your rhythm for the rest of the week. When is a good time? It’s a good time when you’re ready.
The three best times of year to ask for a raise are during your annual performance review (schedule it on a At the end of your company’s fiscal year as long as company financial performance has been relatively strong, or right after a big life event like having a baby. When budgets are being set and new goals are being established, it is a good idea to ask for a raise or bonus at the beginning of the year. Here’s why:
Your boss is thinking about you during your performance review. Make sure you come prepared with a list of accomplishments that demonstrate your value to the company because your boss is eager to recognize and reward your hard work. You are more likely to get a higher raise if you come with your market value research. At the end of your fiscal year, your boss is thinking about next year already and as long as company performance was at least okay to great, then you are more likely to get a yes.
When you are going through a big life event like starting a family, some bosses will have a soft spot for you. It’s important to remember that your boss will not always be able to give you what you want, so be Bring this to the table when you sit down with your boss if you are having a baby. Your ability to perform job duties will be impacted by your new role as a parent. If you want to get a raise so you can start planning for your child’s college fund, and ifyou want to make sure you can cover the extra expenses of having a child, then you should do it now. I understand that this is a difficult decision, but I believe that my work merits an increase in salary so that I can provide the best future for my child.
According to research, the best time to ask for a raise is Friday morning. Be sure to have a well-thought out argument prepared with facts and figures to back up your request for a raise. Friday morning is a good time to bet. You should arrive early on Friday as it tends to get crowded closer to noon. Your boss is excited about the weekend because he is like you. Your boss is looking forward to taking a break and relaxing over the weekend. Psychology research also shows that people tend to be more generous in the morning before noon.
5. Ask For Your Raise
In my career, I have directly managed many employees. I have helped many employees reach their full potential. You know what? I will make it work no matter what. Do you know how many people have asked me for a raise? I take their requests very seriously. One. One of my employees has never asked for a raise. I granted their request because of their initiative. I still can’t believe it.
Do you want to know something? I’m going to tell you something that nobody else knows. If they just asked for it, I would pay them more money. I want to make sure talented people know it’s okay to advocate for themselves if they don’t feel comfortable asking for a raise. I want them to stay at my company. I want my employees to reach their full potential and that’s why I provide a positive work environment. They are worth a lot to me. I treasure them more than anything else. Most employees don’t know that they are more valuable to their boss than they think. Employees are usually the most important part of any organization and their contributions can make or break a company.
You are more likely to get a raise if you have the right data. A clear understanding of the value you bring to your company will increase your chances of getting a raise. I hope it works for you. I wish you good luck with it. Let me know if you got a raise. I’m looking forward to hearing your success stories. Best of luck!