Many companies are experiencing employee attrition at unprecedented rates. According to a recent study by MIT Sloan, attrition rates are as high as 30% in some industries. “The Great Resignation” or “The Great Reset” has prompted many workers to reflect and re-assess their goals.
With a very competitive job market, employees have the upper hand. In some cases, employers are proactively asking employees what salary would make them happy.
According to Forbes, a survey by the Conference Board shows that companies are setting aside an average of 3.9% for raises this year – the most money put aside for wage increases since 2008, however this falls short of the current 7% inflation rate.
Should you negotiate and stay, or leave?
It’s a good time to pause and reflect. What are your goals? Be honest and intentional with what you really want. What are your reasons to stay?
If you’re well-respected and have good relationships, you have leverage.
Certainly, in a toxic workplace culture, or when your personal values no longer align with the company’s, those are good reasons to leave.
Things to consider:
- Is it truly about salary, or something else?
- What would make you happier, besides a higher salary? A promotion, or title bump? More flexible working arrangements?
- If you are positioning yourself for a more senior role, what do you need to learn new skills to earn a promotion? Now’s the time to ask for tuition reimbursement for executive education or an advanced degree.
- What do you aspire to do next? If you’ve always wanted to run a team or develop talent, now’s the time to have that discussion with your boss.
- How is the company doing financially? Assess if the company is truly capable of giving raises or just testing for flight risk.
- Are you performing at the next level? This can determine your leverage for a merit raise.
If your boss goes to bat for you and you get everything you’ve asked for, would you *really* stay? Or want to??
If you don’t get what you want, NO means NO now. Think of this process as a series of conversations and find opportunities to revisit the discussion at another time.
Generally, here are ways to think about and approach the conversation:
- What are the company’s goals and objectives?
- How have you contributed to those goals?
- Put yourself in your boss’ shoes: what challenges and constraints are your boss and the management team facing now?
- What can you do to fill the gaps? Frame this from the perspective of what you truly want to do and what’s possible for you and your boss.
- How can this be a win-win for you and the company?
If you’re asking for a salary increase, do your research and come prepared with comparable market data points. Some useful salary resources: LinkedIn Premium salary database; for tech jobs, I recommend Payscale.com or levels.fyi.
Unfortunately for women, there’s a likeability penalty if you’re seen as too aggressive in asking for what you want. As Mary Sue Coleman, former President of the University of Michigan says, being “relentlessly pleasant” by going the extra mile to appear likeable during a negotiation can make all the difference.
This doesn’t mean soft-pedaling your ambitions and goals, but rather, it’s about asking nicely and expressing concern and appreciation for your boss and the company. Frame your request and tone so you are heard – address the situation from their point of view, and use positive instead of negative terms. Think opportunities, not constraints.
Keep it friendly, conversational, and make it easy for them to advocate for you.
A great example is how Sheryl Sandberg, COO of Meta and founder of LeanIn.org skillfully negotiated her salary by making the case for how the company (team) would benefit from her own negotiating skills, as value she brought to the team.
Therefore, as you negotiate your role in your own organization, think about what you bring to the table, where you add value and fill the gaps, and how the organization would benefit with YOUR leadership.
Other Useful Resources:
5 Reasons Not to Quit Your Job Yet (Harvard Business Review)
Ask for It – How Women Can Use the Power of Negotiation to Get What They Really Want (by Linda Babcock and Sara Laschever)
