I would leave out the 'industry averages' argument - my reaction as a manager is 'so what' - if I think you suck and you can make more somewhere else, go ahead.
Your mindset as the employee is, I'm bringing more value than my comp is worth. The employer mindset is, if I don't give this raise, will they walk and do I care. That's why sales guys have the top salaries - its easy to quantify - they bring in - make ALOT of $, or they don't and are out of a job. With Devs its harder, so you make your case.
Another thing, managers higher up who make the decisions don't necessarily know who is good and who isn't. Especially introvert devs who are the farthest thing from self-promoters. Your interactions with your boss, annual reviews, kudos, etc.. should give you some idea how well you are liked. Well liked people get raises because losing them hurts.
I wouldn't be too timid then - and ask directly. Not this "can we please discuss further". Rather, "I would like a 5% percent raise. Here is why I deserve it." Could be job accomplishments. Could be speaking, helping marketing, extra-curriculars.. Any chance to quantify with numbers is good. You'll get it, or not - or get part of it. It's just business and you are likely much more emotional about it then your employer, who deals with this thing all the time.
Industry averages isn't convincing. Most employers have better industry average data than you do as an employee. My company gives me industry data for all the positions I manage that can be segmented by location and years of experience. We use it to guide comp changes and it makes it easy for me to know whether someone is bluffing, even when they're talking about moving to a different city. So if one of my directs comes to me with industry averages, I can normally tell immediately that it's just what recruiters have been quoting him/her and they're just saying that to entice him/her to interview and get negotiated down.
What is useful is another offer. If one of them came to me with, "I've got an offer at $X and would prefer not to have to switch jobs...can you match it?", I have to take that seriously. It's also much easier for me to sell it to my boss when I'm basically selling it as a save job rather than something preemptive.
It's a strategy that can't be used too often...eventually, your employer will just call your bluff and you'll have to move jobs. And it only works if you're actually under what you can get in the market. But if you're in a situation where you really need a one-time correction, taking the time to interview will make the process of getting the raise at your current employer go a lot more smoothly.
That's a fair point, but as an employee if I'm forced to use job offers to argue for a fair wage, you are increasing the chances that I will find an offer that I decide to take without challenging you with it.
As an employee, if I have to battle with management for a fair wage by leveraging other offers, you aren't an employer I will show the tiniest shred of loyalty to when I find even a slightly better offer, and I would struggle to justify giving two weeks notice instead of quitting on the spot.
You are painting a picture where management takes an adversarial stance to interactions with their employees. This does not sound like a healthy work environment to me.
- I was giving advice to someone asking how to ask for a raise. Asking for a raise is always going to be somewhat adversarial. Either it's a really small company, in which case money is likely tight, or it's a large company and budgets have been set, so raises outside the normal cycle are always going to be difficult.
- As a manager, I try to preemptively ensure that my most valuable directs can't pull this on me. I've got the industry data and I use it during the prescribed EoY period to suggest adjustments that I feel compensate them above what they would get offered elsewhere. I've recommended giving devs $10k+/yr in addition to their normal EoY raises simply because I thought there was a chance they're getting down near their market rate.
If I err, it's on the side of caring too much for my team and I try to take care of them whenever possible. But asking for an off-cycle raise is going to require a sell job on my part and I need them to give me the ammunition necessary or it isn't going to happen. That's just the way things are when you're at a large organization with a reasonably-sophisticated budgeting process.
Perhaps that's the other nugget to offer someone looking to get paid more...timing is really important. Management may be completely sympathetic to your request and agree that you should be paid more, but basically have their hands tied in terms of giving it to you. If you're asking at a time when salary adjustments are common, getting a larger adjustment will likely be easier, especially if it's tied to an above-average review.
Echoing what click170 said, if the only (or only effective way) of making my employer take my raise requests seriously is to come to them with another offer, then chances are I'm just going to take the other offer.
It's much easier to leave them wanting more by just bowing out and accepting that other offer rather than forcing the business relationship into a more adversarial place.
I leave with my pockets full and fond memories all around the table.
That agrees with my experience. I'll add that when an employee came to me with an offer, if I found s/he was under paid (happens in large orgs where you inherit people during reorgs) I would cheerfully correct it if I could. However, if they were already fairly paid then I might do some retention action as a stop gap measure but at the same time work on a plan to replace them.
So my advice to employees is to use that tactic carefully, because you are alerting management that you are at risk of leaving and management needs to find a replacement for you. Once they do you will probably be squeezed out.
> but at the same time work on a plan to replace them.
And this is why I would never ask for a pittance of a raise. It has no certain benefits, very few potential benefits, and can immediately mark one for death in an organization.
As an individual: it's too easy to take away all of your power and leave, netting higher compensation and likely a better environment (potentially one where a raise needn't be asked for!).
And then from that point it's even easier to take your former team with you, resulting in healthy referral bonuses (Good luck proving solicitation).
This isn't a good market for a procurer of software labor: this kind of "replace em!" management attitude is only self-defeating.
The social aspect is definitely important. Being someone who can work well with others is essential. Being able to communicate complex tech things to non-tech people is very valuable for career advancement. If this is a skill you lack, work on developing it.
If your manager thinks you suck, then yeah, you will not be getting a raise. In fact, they may be looking for a way to push you out. However, if they do think you are good, then understanding where you are pay-wise relative to the industry can be a good argument to make.
You knowing may be somewhat helpful so you know what you may ask for if you walk, but my concern raising it in the ask to your employer - makes you look a little worse, not better.
First of all, you're not bestowing any wisdom to your employer. They know what the average salaries are. In fact, they are in a much superior information position than you as an employee, in every way, and they know it. Can't do much about that.
My concern about that tactic is - it's obviously a negotiation ploy - it's not based on how much value I am bringing, it's based on a number I was able to find that supposedly supports my position. It doesn't mean anything to the business leader trying to make a profit.
IMHO:
These types of things are not successfully dealt with via email. If you are in search of an email template, you are on the wrong path.
Your raise or lack thereof will be determined by one or two people. (a person will make the decision and perhaps their superior will need to approve it). If you don't know who the person is, your first task is to find out.
Let's assume you know who the person is. If two people have a healthy relationship and there is an important issue to discuss, the issue will be raised and discussed in person. If you don't have a healthy relationship with the person who will make the decision, fix it.
IMNSHO:
If you are not willing to do the above, by far the most effective email template to ask for a raise will be:
"Dear X, I am writing to apply for the web developer position at company Y (...)"
As stated in the intro, the email is meant to be the start of a conversation. Of course you can discuss it in person instead. For many people, it can be intimidating and stressful to ask for a raise. Sending an email allows you choose your words wisely and take some of the pressure off. Better to send an email than to keep waiting for what feels like the right time.
Some have suggested the tactic of threatening to leave as your negotiation tactic. I would recommend against that if you like working where you are, as it could backfire. You could even get that raise, but then later be let go. If you don't really like where you are working at all that much, then go for it (but maybe don't lead with that tactic as it can burn bridges).
Write articles. Give talks. Share your knowledge and help others be better.
Those things are great but they won't get you a raise. They'll only really help if you want a better paid job at a different company. To get a raise you need to demonstrate to your employer that you're undervalued - do really good work[1], bring in new clients, teach things to other members of your team. Raises happen internally, external things won't really help.
[1] Note that this does not mean going over and above the specification of a project. That's a bad thing as far as the business is concerned because chargeable work should never be done for free. If you want a raise try suggesting things to the client that they will pay for - bringing more money in to the business always makes you look great.
In my own experience, having popular open source projects, giving talks, and writing articles contributed to the overall picture of my value as an employee and helped me advance my salary. This obviously can vary depending on where you work.
Doing those things also were great learning experiences, and made me better at my job.
It certainly helped me feel confident that I was worth a raise, and comfortable in that if I did not get paid competitively, there would be other opportunities.
Also you mention bringing in more business. Depending on your company, doing those things can bring in more business.
Lately I've been experimenting with asking for raises quarterly and so far it's worked out great. My tips for people:
1) obviously know who is in charge of how much you make. Like actually get to know them.
2) find a way to stand out amongst your peers. For me it was a dedication to learning new tools that have benefited us and actually being good at my job.
3) go out of your way to get shit done and do stuff right.
4) ASK for a raise from the person in charge of your $$$ directly. Don't waste anyone's time and don't wait on the sidelines hoping people will take notice of your efforts. If you don't ask to get paid more it won't happen.
5) be so good that if your company looses you it's really going to hurt.
Quarterly that's very pushy - how's that working out I could see there being a risk of -ve outcomes
re
#3 I fixed a multimillion screwup at British telecom Neither I or the Company accountant got even a thank you.
#5 Cemetery's are full of indispensable people
Well I'm at a relatively small company ~40 employees. I interact daily with the CEO - which helps a lot. And it can be risky but the worst you can get is a NO. Which I've gotten. But who cares.
All I've got to say if the company you work at doesn't appreciate you I'd look somewhere else. Somewhere where devs are actually appreciated.
If in a corporate type job, everything I've said is irrelevant. But who wants to work in corporate America anyways?
I'm all for doing what you can to up your pay because, at the end of the day, that's the only concrete way a company can show that it values you.
However, quaterly seems a bit extreme to the point of being nagging/needy. Consider how your relationship with someone changes if they kept asking the same question. I would think at some point you would become the "ugh, he's asking for a raise again" guy. So the worst case isn't a NO. The worst case is you get filed as "that guy".
Maybe space it out while asking for bigger ones?
How many times have you asked for a raise with this schedule?
Guys, I hope you are asking for/getting more than that.
The foolproof way to get a raise is to have another offer. Don't say: I have recruiters contacting me (everyone does). Just get a concrete offer. Then say you have an offer but really like it there, would they please meet it? If they don't, they don't value you GTFO. If they do, you get your raise. Win Win.
That's how I went from 80k to 180k over 5[0] years.
I've tried that approach a few times in the past. Invariable, I end really liking the company I talked to to get another offer, and just end up taking it!
Maybe template is the wrong word. It is meant to be a loose outline of what you could say. A starting point with some advice. Every situation is unique.
Also, this email should function as the invitation to have a discussion. Finding the right time and way to ask for a raise can be difficult and stressful. Using an email to start things up can take the pressure off.
At a guess, you're using Windows and the author is using Mac? [1] (I'm also using Windows -- it's my gaming PC, don't judge! -- and having an equally difficult time.)
Definitely don't let anyone ever judge you for that. The vast majority of desktop/laptop users are on Windows, including a slightly-less-vast majority of developers.
For this little project, I just grabbed a template used by a very popular Github page. Looks like the font does not play well with Windows. I just switched it to good ol’ reliable Helvetica.
Yes, and that font looks much better. I've used Lato on projects in the past and it was legible, but you have to stick to 400 weight and above (IIRC, that template you used was only loading 300 and 700).
If everybody starts asking for a raise, the average salary will go up, and we can start all over :) By the way, I'm wondering how one would determine the average salary for one's job in a reliable way (your boss could contend that those numbers are fake to some extent).
Wouldn't it be advantageous to employees if salaries were just out in the open within a company/department? It seems to me that employers benefit most from the current situation where salaries are private.
I removed the bit from the example where it mentions family. I think in some cases it is good to talk about the reasons why it is important to you to get a raise outside of just the money. It seemed to bother people and I think it is an optional thing anyway. Certainly not necessary in an email opener.
I disagree with the letter's approach even though the author says it works based on his experience.
The best template for getting a raise is something like this:
To Boss/CEO, I will be resigning my position at the company to take advantage of a new opportunity. Regards,
After that email is sent, you'll then know if the managers will woo you with a salary increase to keep you, or laugh and tell you not to let the door hit your ass on the way out.
If you're a superstar, you can leave and make more money. The superstar programmers at DEC left and jumped shipped to Google Inc. The superstar engineers at Lockheed & Boeing got lucrative offers from SpaceX. You'll also get bigger raises than a measly 5% raise. More like 20% to 100%
Now, if you're not at all interested in actually switching jobs, your options for leverage are severely handicapped. Even in that case, I recommend a different approach than the author's suggested text:
If you can't leave the job, you have to explain your value in concrete terms and why it's not being properly compensated.
Option 1: An example of leveling up the salary to your actual duties that management has overlooked: "Since the end 2014, I've been tasked to manage the Linux server reliability team in addition to delivering new web apps functionality..." You then ask to talk about market rate compensation for management work.
Option 2: An example of leveling up to new tasks and asking for the increased compensation to go with it: "I've been doing web app here for 2 years but I've noticed many inefficiencies with the Linux reliability team. I feel I'm the right person to take additional responsibility and make the team effective but I'd like to talk about compensation..." -- Basically you're being proactive about fast-tracking a promotion to a more valuable role within the company.
The 3rd option outlined by the author is the worst situation to be in: Doing what exactly you've been doing while simultaneously asking for a ~5% raise to "match market surveys" is a position of weakness. The boss responds, "ok, thanks for bringing your concerns to our attention, we'll get back to you" ... and then they don't bother giving you a raise. You'll be secretly branded as a fool if you don't resign.
Lastly, some stylistic choices on author's wordcrafting I disagree with:
"I have no desire to work anywhere else, but lately I have been getting lots of recruiters and people I know at other companies reaching out to me to see if I'd be interested in making a move. I tell them I am not interested of course, "
This text is an example of "trying too hard". You don't need to write any of that "social proof" stuff at all. If your managers are intelligent, they will infer this without you explicitly mentioning it. It's like you ask a girl out on a date by prefacing, "I've been approached by lots of girls and I've been fighting them off but I really like you so will you go to the prom with me?"
And this:
"Now that I have been married for a couple years, I am starting to make plans for a family, "
Do not put personal reasons into business correspondence. It looks weak. Yes, you have a family, or a mother with cancer treatments, or a daughter that needs a college education fund. The problem is that _everyone_ has personal goals that require employment salary so mentioning it just triggers a "yeah so what?" reaction. I suggest for folks to watch[1] the Jack Lemmon & Kevin Spacey's "But my daughter" / "Fuck you" scene 100 times to rid themselves of the idea to put personal touches into business discussions about raises.
> After that email is sent, you'll then know if the managers will woo you with a salary increase to keep you, or laugh and tell you not to let the door hit your ass on the way out.
I was under the impression that taking a counter-offer is unwise as it tends to mean they fast-track finding a replacement for you, as you're clearly disgruntled enough to find/accept other work and a salary bump generally won't fix the reasons.
Yes, the boss can be suspicious about your long term prospects if the employee leaves them with the impression that the only reason to stay was the pay increase.
That's where the employee has to package the multiple reasons for staying besides the money. You can also bring in the "family" reasons if you want to.
Example:
Boss: "Yikes John, we hate to see you go. We can give you a 10% raise to stay."
employee: "Hmmm... that's interesting. Well, I've been wanting to work Mike's team on the robotics software. Can I also get more involved with that? And I need to talk it over with my wife. She's really been wanting to stay in the area to take care of her mother, so if she hears about this, she may be convincing me too. etc."
Notice that I recommend that people leave out personal family stuff in asking for a raise but it's ok to use it when accepting the counteroffer.
Bringing up the "baby needs new shoes" to ask for a raise is signaling to the boss that you're clueless about business negotiation. But paradoxically, it's ok mention the family stuff as an additional reason to accept the counteroffer because it gives the boss the warm & fuzzies that it's not purely mercenary.
Why would you degrade yourself by begging for a pay rise and using your wife / marriage / family plans as a way to show your vulnerability?
Begging and using your family situation for anything is beta. You need to step up and use your power to get more money. If you're not paid enough; LEAVE! Grow a backbone.
Real career progression doesn't happen off the back of begging. I certainly won't take you seriously for any position of power if you try and beg your way there.
I don't care about your family plans, I care about the value you bring to me. Be valuable, be alpha, be worth what you're asking for or fuck right off.
Down vote and censor my language all you want; you don't win by being a whining ass bitch.
Firstly, I'm fairly senior in a large consultancy; make of that what you will.
Secondly; I mean the power and influence that you have in your company, if you have no influence in your company, then at least you have some power in your market. Your employer is not the only one in your city and moving usually gives you a pay bump. Just don't go fucking begging, you're a professional and you're worth money.... bro.....
Which could easily mean "frustrated and impotent mid-level at a soul-draining mega-conglomerate dinosaur", which would certainly shed some light on your posturing behavior.
But to the point, I don't see anyone advocating whinging or begging, that interpretation was tacked on by you and your alpha-beta nonsense. Bro.
Stop making assumptions about me. You don't know me.
Do you really think that whining about your wife and your family plans isn't begging? Please sir... can I have more?
Ask for what you deserve or go and get it elsewhere.
Asking for more because you are about to have a family is begging, it comes across as asking for a favour. Your boss, or his boss, or the boss you don't like may grant you the pay rise but you're positioning it as a market average pay rise at best or a favour which you owe gratitude for at worse.
If you are worth more, tell me why and ask for it like an adult; don't bullshit me, I know your worth and so do you; if we disagree on that point, prove me wrong or get another job in this incredibly liquid market.
IT guys are fucking terrible at negotiating. This letter and your response to me are classic examples.
Everyone is different. I personally don't consider talking about why a raise is important to you, in a human way, is a bad thing. I wouldn't want to work for someone who thinks that what is most important to me in life is irrelevant at work.
I had that bit as optional because some people want to keep stuff like that out of it, which is fine.
The overall gist is that when making your case, if you truly like your company and want to stay, you do not want to come off as an arrogant, greedy asshole who is up for grabs to the highest bidder. You should come across as a loyal, enthusiastic, high performer who simply wants the salary (or possibly promotion) they deserve.
Sometimes getting you a raise will require your boss having to fight a battle for budget, and to do that, it helps if they actually like and respect you as a person as well as value you as an employee.
I have gotten many raises over my career, so this approach has worked for me. However, every situation and person is unique.
@juliangregorian - Not sure why I can't reply directly to your post so I'll quote you here then reply
"Getting a lot of projection out of you; you sound quite bitter. Actual employers love it when employees start families and it is worth extra money, but I won't waste my breath explaining the subtleties of that to you. It's too bad we can't all just be alpha for money like you; I'm sure we'd love to read your blog post telling us how."
Why are you making this about me? Like I said, you don't know me.
How do you know companies like it when employees start families? That's highly subjective and down to the company; it also has nothing to do with what we're talking about. Having a family does not mean you are worth more to a business. Do you have any idea how many days I've taken off to look after my sick kids?
You clearly have no idea what you're talking about.
You are a highly paid professional with one of the most in demand skills in the modern world. Act like it.
Getting a lot of projection out of you; you sound quite bitter. Actual employers love it when employees start families and it is worth extra money, but I won't waste my breath explaining the subtleties of that to you. It's too bad we can't all just be alpha for money like you; I'm sure we'd love to read your blog post telling us how.
Your mindset as the employee is, I'm bringing more value than my comp is worth. The employer mindset is, if I don't give this raise, will they walk and do I care. That's why sales guys have the top salaries - its easy to quantify - they bring in - make ALOT of $, or they don't and are out of a job. With Devs its harder, so you make your case.
Another thing, managers higher up who make the decisions don't necessarily know who is good and who isn't. Especially introvert devs who are the farthest thing from self-promoters. Your interactions with your boss, annual reviews, kudos, etc.. should give you some idea how well you are liked. Well liked people get raises because losing them hurts.
I wouldn't be too timid then - and ask directly. Not this "can we please discuss further". Rather, "I would like a 5% percent raise. Here is why I deserve it." Could be job accomplishments. Could be speaking, helping marketing, extra-curriculars.. Any chance to quantify with numbers is good. You'll get it, or not - or get part of it. It's just business and you are likely much more emotional about it then your employer, who deals with this thing all the time.