Negotiation-filter.
October 27, 2010 1:18 PM Subscribe
I need help with my first 'real' wage negotiation.
A little background: After several years bouncing around from service-industry to service-industry job, I managed to get a lower level desk job with a "very hip" specialty beverage company. It was low pay, but the experience i gleaned from it and reputation of the place carried itself pretty far on my resume. I was laid off during the economic slowdown, and the company illegally withheld unemployment benefits to me (which i eventually got, 6 months later, WOO!). Needless to say, when i got the opportunity to work for a small start-up in the same industry several months afterwards, I jumped at the chance to make any amount of money, as my savings were dwindling. I accepted the job at a fairly low wage level (but still comfortable to get by).
In this new position, I do a ludicrous amount of work, much of which is the work that my former bosses used to do. I handle all the shipping logistics of our business, i do the day to day books, AR/AP work, and day-to-day account management, graphic design, production scheduling, and gourds more. I also have specific knowledge of the industry, especially in the city that i am in. I have intimate knowledge of the business practices and accounts of our largest direct competitor, as they were my former employers. I've been able to glean quite a bit of business for our company very quickly because of my former employer (approximately 30% of wholesale sales). I've also gone on some efficiency binges around the company: I've already been able to save the company $20k on packaging supplies and shipping costs.
So, this brings us to my upcoming review. I've never had this opportunity before, and from what i've read i'm in a precarious position. Since I accepted the position at such a low wage level, I'm going to be aiming for a very large raise, around the 40-50% mark, which seems like a total longshot. It seems like a totally unrealistic jump (or is it? i've only really worked jobs when a .25 cent raise was SO AWESOME). Another point, is that I know for a fact that all of my direct co-workers are in the same bracket i am trying to reach...does this help or hinder me?
I have facts, figures, charts showing that the work that i do is worth more than they're paying me....i just have no idea how to present it and what to say.
Most of the googling that i have done on the topic focuses way more on how to negotiate wages when you're first hired, but that ship already left the station.
Help?
A little background: After several years bouncing around from service-industry to service-industry job, I managed to get a lower level desk job with a "very hip" specialty beverage company. It was low pay, but the experience i gleaned from it and reputation of the place carried itself pretty far on my resume. I was laid off during the economic slowdown, and the company illegally withheld unemployment benefits to me (which i eventually got, 6 months later, WOO!). Needless to say, when i got the opportunity to work for a small start-up in the same industry several months afterwards, I jumped at the chance to make any amount of money, as my savings were dwindling. I accepted the job at a fairly low wage level (but still comfortable to get by).
In this new position, I do a ludicrous amount of work, much of which is the work that my former bosses used to do. I handle all the shipping logistics of our business, i do the day to day books, AR/AP work, and day-to-day account management, graphic design, production scheduling, and gourds more. I also have specific knowledge of the industry, especially in the city that i am in. I have intimate knowledge of the business practices and accounts of our largest direct competitor, as they were my former employers. I've been able to glean quite a bit of business for our company very quickly because of my former employer (approximately 30% of wholesale sales). I've also gone on some efficiency binges around the company: I've already been able to save the company $20k on packaging supplies and shipping costs.
So, this brings us to my upcoming review. I've never had this opportunity before, and from what i've read i'm in a precarious position. Since I accepted the position at such a low wage level, I'm going to be aiming for a very large raise, around the 40-50% mark, which seems like a total longshot. It seems like a totally unrealistic jump (or is it? i've only really worked jobs when a .25 cent raise was SO AWESOME). Another point, is that I know for a fact that all of my direct co-workers are in the same bracket i am trying to reach...does this help or hinder me?
I have facts, figures, charts showing that the work that i do is worth more than they're paying me....i just have no idea how to present it and what to say.
Most of the googling that i have done on the topic focuses way more on how to negotiate wages when you're first hired, but that ship already left the station.
Help?
Negotiating Your Salary: How To Make $1000 a Minute is very worth the small amount of money and time you will invest to acquire and read it.
posted by Jacqueline at 1:45 PM on October 27, 2010 [1 favorite]
posted by Jacqueline at 1:45 PM on October 27, 2010 [1 favorite]
"Hi Boss, got a minute? Great, thanks. As you know, I've been working here now for ___ months, and I've been really enjoying the position. Not to toot my own horn too much, but I think I've been doing a good job, having accomplished quite a bit, including ___ and ___. I've even been able to bring in new business — here's a chart — and I've saved the company $20k on shipping costs. Oh, here's another chart showing that fact, too.
"Given all this, I think I'm a strong asset at this company and I'd like to be considered for a raise to $___. I know that's a big jump, but I think it's in accordance with my value to the company."
Don't mention your coworker's salary - it comes across as sour grapes. Don't sell yourself short, and don't indulge in false modesty. If you've had some failures along with your successes don't gloss over them, but don't dwell, either. If they come up, focus on what you've learned from them. Above all, keep the focus on what you've done for the company. If you've really increased sales by 30% and saved $20k, you deserve a raise, and a big one.
One other big thing: don't haggle - it makes the review difficult for everyone and makes future raises less likely. Go into the review with two numbers in mind: your dream salary, and your "thanks, but I'm getting a new job" salary. Ask for the dream. If they counter above your minimum, say thanks and make a note to ask for another raise in 3-6 months. If they counter below your minimum, say thanks and start polishing your resume.
posted by jacobian at 1:45 PM on October 27, 2010 [1 favorite]
"Given all this, I think I'm a strong asset at this company and I'd like to be considered for a raise to $___. I know that's a big jump, but I think it's in accordance with my value to the company."
Don't mention your coworker's salary - it comes across as sour grapes. Don't sell yourself short, and don't indulge in false modesty. If you've had some failures along with your successes don't gloss over them, but don't dwell, either. If they come up, focus on what you've learned from them. Above all, keep the focus on what you've done for the company. If you've really increased sales by 30% and saved $20k, you deserve a raise, and a big one.
One other big thing: don't haggle - it makes the review difficult for everyone and makes future raises less likely. Go into the review with two numbers in mind: your dream salary, and your "thanks, but I'm getting a new job" salary. Ask for the dream. If they counter above your minimum, say thanks and make a note to ask for another raise in 3-6 months. If they counter below your minimum, say thanks and start polishing your resume.
posted by jacobian at 1:45 PM on October 27, 2010 [1 favorite]
Jacobian has the right approach.
Also, know that you are a great deal to your company right now, and given that you missed the opportunity to negotiate this when they hired you, know that you also have limited options if they say no. They might give you a small wage, but, ultimately, the only real power you have is the ability to quit. But I wouldn't mention that either.
Instead, if they say no, start looking for something else.
posted by bluedaisy at 1:55 PM on October 27, 2010 [1 favorite]
Also, know that you are a great deal to your company right now, and given that you missed the opportunity to negotiate this when they hired you, know that you also have limited options if they say no. They might give you a small wage, but, ultimately, the only real power you have is the ability to quit. But I wouldn't mention that either.
Instead, if they say no, start looking for something else.
posted by bluedaisy at 1:55 PM on October 27, 2010 [1 favorite]
I totally agree with Jacobian and also wanted to throw in this warning: they might make an offer before you get to say the amount you want. In that case, DO NOT assume their offer is the best you will get. Just say something like, "Oh, I'm glad you agree with me about a raise. I was actually thinking more along the lines of $xy. Can you meet me there?" They might need to think about it and get back to you but don't back down or apologize or feel sheepish.
Also, I think it's fine to negotiate/haggle a little bit. You don't want to go back and forth a ton and appear desperate. But, if you state your desires and they can't come close enough to a reasonable amount, ask if they would be willing to increase some benefits like paid time off.
posted by joan_holloway at 2:02 PM on October 27, 2010 [1 favorite]
Also, I think it's fine to negotiate/haggle a little bit. You don't want to go back and forth a ton and appear desperate. But, if you state your desires and they can't come close enough to a reasonable amount, ask if they would be willing to increase some benefits like paid time off.
posted by joan_holloway at 2:02 PM on October 27, 2010 [1 favorite]
I write about personal finance for a living. That means I read a lot of other personal finance writing. Without a doubt, the best book I've ever read on this subject is the afore-mentioned Negotiating Your Salary by Jack Chapman. Buy it. Read it. Use it. It's worth every penny you'll pay for it. If you need it fast, I think you can buy a PDF version from the author's site.
If you want a more detailed review, here's my write-up of the book.
posted by jdroth at 2:20 PM on October 27, 2010 [4 favorites]
If you want a more detailed review, here's my write-up of the book.
posted by jdroth at 2:20 PM on October 27, 2010 [4 favorites]
Just note that the only way to negotiate any deal with power is the ability and confidence to walk away if the terms are not agreeable.
posted by sammyo at 4:47 PM on October 27, 2010
posted by sammyo at 4:47 PM on October 27, 2010
People stay working at a company for a few reasons (they like the people they work with, they like the work, they like their pay) if those three things together don't equate to you staying there then that is all there is to it. That being said, fully expect to ask for your dream salary and be told "... recession ... you've only been working here x months, not years ... i really respect your wishes and will hit you half way with an extra performance bonus in 6 months if your work ethic continues to be great."
Sometimes you have to bite that lower-salary bullet for a few years to really prove your worth, and like sammyo said: the only way to negotiate any deal with power is the ability and confidence to walk away if the terms are not agreeable
posted by zombieApoc at 6:12 PM on October 27, 2010
Sometimes you have to bite that lower-salary bullet for a few years to really prove your worth, and like sammyo said: the only way to negotiate any deal with power is the ability and confidence to walk away if the terms are not agreeable
posted by zombieApoc at 6:12 PM on October 27, 2010
Whoever said to read Negotiating Your Salary: How To Make $1000 a Minute is SO F'ING RIGHT I can't even tell you.
I've gotten double-digit percentage raises for the last 4 years straight based on those techniques, and this during a recession.
Beyond that book, the biggest thing is simply knowing that you're valuable. Don't feel ashamed asking for the money (that was definitely how I felt the first time I had to do this). You are worth the money. That has to be your attitude. Don't be cocky about it, but the fact is that you're more valuable than your current salary. They'll know that.
Also, you should think about other perks to negotiate in addition to just the bottom line. For example, do you currently get an annual bonus? One thing that companies of all kinds find easier to hand out is bonus money, since, when times get tight, they feel that it's easier to cut bonuses than salaries. For that reason it's not quite as good as a salary bump for you, but could offer a quicker path to a higher annual total income. Another thing is cell phone usage: does your company offer a corporate cell phone plan that you're not yet on? That could save you $100/month. Also classes: will they sponsor classes outside of work? Do you feel that you get adequate vacation? Could you work from home sometimes but the current structure doesn't let you? Etc. Bottom line: compensation is a lot more than just base pay.
posted by kryptonik at 7:40 AM on October 28, 2010
I've gotten double-digit percentage raises for the last 4 years straight based on those techniques, and this during a recession.
Beyond that book, the biggest thing is simply knowing that you're valuable. Don't feel ashamed asking for the money (that was definitely how I felt the first time I had to do this). You are worth the money. That has to be your attitude. Don't be cocky about it, but the fact is that you're more valuable than your current salary. They'll know that.
Also, you should think about other perks to negotiate in addition to just the bottom line. For example, do you currently get an annual bonus? One thing that companies of all kinds find easier to hand out is bonus money, since, when times get tight, they feel that it's easier to cut bonuses than salaries. For that reason it's not quite as good as a salary bump for you, but could offer a quicker path to a higher annual total income. Another thing is cell phone usage: does your company offer a corporate cell phone plan that you're not yet on? That could save you $100/month. Also classes: will they sponsor classes outside of work? Do you feel that you get adequate vacation? Could you work from home sometimes but the current structure doesn't let you? Etc. Bottom line: compensation is a lot more than just base pay.
posted by kryptonik at 7:40 AM on October 28, 2010
« Older Need a quick way to wow with food! | I hate the type of work I'm best at. What to do? Newer »
This thread is closed to new comments.
You say that your 'direct co-workers' are in the same bracket - do you know what that pay bracket is? Do you know the job level/description? if so here's another ploy:
- present your data, only the most pertinent data that shows how much money you brought into the company or saved it (efficiencies and the like count as well)
- present a proposal for a new position/title, with a new salary range
This means figuring which of the many duties you want to continue with, in the way that would most benefit the company, then crafting a job description and title for that position.
Aim to start at the low end of the range, and shoot for a 20-25% raise over your current position.
Another strategy is to negotiate for a performance bonus - you might be able to get a 10-15% raise and another 10% annual bonus - together that could get you closer to what you're aiming for.
Otherwise - the best way to get a big (more than 10%) raise is to get another job (told to me by a former boss - and he was right!)
posted by dbmcd at 1:41 PM on October 27, 2010