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Conversations about where we’re at and how we move
forward.
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Conversations about where we’re at
and how we move forward. |
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From Amanda Kersey, Senior Audio Producer, HBR |
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Let’s say you’re planning on negotiating
a raise, and you’ve been methodically laying the groundwork: You took on
multiple assignments that moved the business forward. You got a five-star performance
rating in your last review. You’ve worked to understand your boss’s priorities and how
your day-to-day work supports them. You’ve researched
how your company awards raises and how much other companies pay people in a similar
position. The money is in the bag, right? |
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Unfortunately, taking those steps doesn’t guarantee you’ll receive a fatter paycheck
— at least quickly or without a lot of strategic nudging. As noted in one of
HBR’s many articles on the subject, “compensation
is rarely a straightforward issue.” Budgets are limited. Some bosses advocate
better than others. Further, even though women ask for raises as often as men do,
research has shown that we’re
less likely to succeed in getting them. |
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Still, a lot of women do succeed, and in a new, semi-regular feature here,
we’re going to learn from their experiences with pay negotiations. And while
everyone’s quest for a higher salary is unique, the more real-life examples are
shared, the more inspiration, tactics, and lessons we have to draw from. |
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First up, Natasha, who reads this newsletter and responded to my initial request for
volunteers. She recently left her job to work for herself building a software product.
But last year, when she was still the head of design at a tech startup in Sydney, she
negotiated a $20,000 (12.5%) raise for herself and a $10,000 (15%) raise for her
direct report. I asked her how she did it, and here’s an edited version of what she
told me: |
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Before being promoted to head of design, I was making $145,000 as a senior product
designer. When I stepped into the bigger role, I was offered $160,000 plus $20,000
worth of RSUs. (Editor’s note: Restricted stock units are a type of equity
compensation.) During the negotiation for the promotion, I said I was happy to
start there but that I wanted a salary review after hitting certain milestones. My
manager agreed to do that in six to 12 months’ time. With that plan in place, I
focused on meeting our business goals and hiring a great team. |
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In January 2021, as our company was heading into performance review season, finance
gave me a list of my employees’ salaries, and I noticed that one of my direct reports
was underpaid at $65,000. I began working on getting her a raise, repeatedly talking
her up to my manager over the course of a few months. This was clearly on her mind as
well because in one of our one-on-ones, she told me that she felt underpaid. I
explained that I’d been advocating for her and that we had to wait until HR finished a
company-wide salary benchmarking initiative. (Editor’s note: Salary benchmarking is
when organizations calibrate salaries based on how much competitors are paying.) |
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In August, HR ended up suggesting $70,000 for her, which I thought was still $5,000
too low given how competitive the market was, so I pushed back in a quick five-minute
conversation with the HR person, and we agreed on $75,000. |
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I also got an update on my own salary increase. HR told me that I was now eligible for
$165,000 based on their market research. But that amount was still $5,000 lower than
what one of my direct reports was making. In this situation, people might interview at
other companies, pretend they’re interested, and do a job
audition in hopes of using
an outside offer to get a raise. I wanted a less time-consuming route. So, I
called a recruiter I knew and asked her for the going rate for someone with my
experience and responsibilities. |
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The range she gave me was $180,000 to $220,000. I wrote those numbers down, drafted an
email asking to be paid $180,000 and to receive $20,000 in RSUs that year, and sent
the draft to my mentor. She removed a paragraph where I justified the extra money,
telling me that I was already doing the work and didn’t have anything to prove. |
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A day before my next one-on-one with my boss, I sent him the revised version of the
email so that he’d have 24 hours to absorb the information before we met face to face.
I remember his written reply being something like, “Thank you for this. Leave it with
me to review.” (Editor’s note: His response tracks with the advice in this article,
“How
to Respond When Your Employee Asks for a Raise.”) During a one-on-one a couple
of weeks later, he told me I got the salary increase but not the RSUs because
leadership and the board were creating a policy that would give all employees stock,
as opposed to just upper management. It’s a policy we needed, and I was stoked for
everyone. |
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I’ve been in tech for 15 years now, and earlier in my career, the thing that most
influenced my mindset about salary negotiations was seeing female leaders — deeply
technical women — running key projects, being promoted, and talking at the all-hands
meetings. Their visibility did more for my confidence than anything else because I’d
gathered, through word of mouth, that they were being paid very competitively. |
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My takeaways from Natasha’s story? If you're not satisfied with your starting salary
in a new role at your company, ask your boss and HR department to commit to a review.
Befriend a recruiter or two. Test drive your emails with a mentor. And as a manager,
keep up with how much competitors are paying and proactively advocate for your direct
reports. What are your takeaways? |
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Did you get yourself or someone you manage a raise recently? Are you willing to share
the play-by-play? Email me at womenatwork@hbr.org.
While participating involves giving a lot of details, we’ll work together to keep you
as anonymous as you want to be. |
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Listen to our upcoming episode featuring entrepreneurs Stacey Abrams and Lara
Hodgson. I know so much more about what it takes to start and scale a small
business after reading their forthcoming book Level
Up and then listening in on their interview with Amy Bernstein and Emily
Caulfield. We’ll publish that episode on February 21. Check
that you’re following the podcast so you don’t miss it. And please send it to
the entrepreneurial women in your life! |
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Pre-order your Women at Work books! By coincidence, Stacey
and Lara’s book publishes on the same day as our first three titles in the HBR
Women at Work Series. The series covers the challenges and opportunities women
experience throughout our careers, and each book includes a discussion guide. You can
buy You, the Leader; Making Real Connections; and Speak Up,
Speak Out through HBR.org,
Amazon,
or your favorite bookstore. |
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Register
for the California Conference for Women. The virtual conference is
March 2. On the agenda are talks from hugely successful women; breakout sessions on
leadership, career advancement, and personal development; and an exhibit hall where
the Women at Work team will be staffing a booth. We’re a media sponsor, and we have
five free tickets that we’d like to pass along to readers of ours who want to attend
but can’t afford the $175 registration fee. Email womenatwork@hbr.org
to submit your name, and we’ll select five recipients. |
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Thanks for reading and listening,
Amanda |
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Listen and Subscribe |
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Don’t forget to subscribe to our podcast, to Harvard Business Review, and to forward
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January Reading List |
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A career-supporting partner is a wonderful thing. But it’s not always an
option. |
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Managers play a key role in ensuring a healthy environment. |
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Takeaways from more than 1,000 interviews with professional and executive
women of color. |
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The forces driving them out — and what organizations can do to keep
them. |
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Five key mindset shifts. |
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