“Opportunities don’t happen, you create them.” – Chris Grosser
I know as an individual, it’s often better to have more money isn’t it? It can give you more freedom, more options and improve your life.
But sometimes having more money or a higher salary can be uncomfortable and not what you want. Does it come with more stress? Does it make you feel uncomfortable? Do you feel unworthy of it? Do you feel it is “too high” for you? How would you feel if your job started to want to pay you a double salary tomorrow. You’d either be excited and happy, but also maybe uncomfortable or confused.
Sometimes there are cases when a company is paying someone below what they are worth in the market.
Sometimes there are cases when an employee is just doing enough work to get by. Feeling under appreciated, and not giving their all. Unfortunately this kind of situation can happen too often. They’re not paid enough to give their all, but they are capable of far more. If someone is not doing the work particularly well, why should they get a pay rise? Will giving them more money make the work better? or is it just a waste.
I’d like a pay rise, what can I do?
This is what you need to consider first. What do you want? Do you really want a payrise? Do you want more learning opportunities? Do you want to transfer to another department? It’s important to first get clear in your mind.
If you feel like you are under-appreciated, or paid less than you deserve, you need to get clear on that, and start with the intention of boosting your salary. What would you like to be earning? What do you believe is your market rate?
It’s a good idea to have a specific target amount in mind that you want and to really think it through. Imagine receiving that, and what you work would be like and life would be like. If you can’t even imagine this in your mind, then it’s unlikely to happen.
Note: successful people didn’t just become successful by luck, they started with a clear destination in mind, and then they made it happen.
When you know what you want, now you need to have the conversation.
Start the Conversation
“I’d like to increase my salary, what can I do to make that happen? What do you need from me? How can we?”
This is the kind of thing you can ask your manager.
But before preparing for the conversation, you need to really think, plan and research. Research your market rate, understand your company, and remember, it’s a conversation, not an ultimatum.
You can have an ultimatum later, if you want. If you’ve tried all these things, and you have a better offer, but first, lets think of these questions.
Powerful Quotes
“The only way to do great work is to love what you do.” – Steve Jobs
“To win big, you sometimes have to take big risks.” – Bill Gates
“Your time is limited, don’t waste it living someone else’s life.” – Steve Jobs
“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.” – Albert Schweitzer
“Opportunities don’t happen, you create them.” – Chris Grosser
“Do not wait to strike till the iron is hot; but make it hot by striking.” – William Butler Yeats
“I find that the harder I work, the more luck I seem to have.” – Thomas Jefferson
“Be not afraid of going slowly, be afraid only of standing still.” – Chinese Proverb
“The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack in will.” – Vince Lombardi
“If you genuinely want something, don’t wait for it—teach yourself to be impatient.” – Gurbaksh Chahal
How do you see your career?
Many people make the mistake of not thinking about their career.
In a world where there is only one company you can work for, for your whole life, Vs in a world where there are huge changes coming and many options, how you think about your career is going to be different. Also, at different times of your life, you are going to want different things.
You might want to have more opportunities to grow earlier in your career, so you might choose work somewhere that pays lower, but gives you more opportunity, in the short run.
You might also seek a higher pay when you have a family, looking to buy a house, and you are seeking to support them and maximise your family.
I think the mistake many people make is thinking too short term. It’s important to think in the long term, both regards to which direction you want your career to go, and what you want to make you happy.
Are you a commodity or an individual?
If you are just the same as others, then you’ll be paid according to the market rate of the others. But if you are different, even if you are not necessarily better, but if you are unique, then you will be paid much more. For example if you have a unique skill or ability that nobody else in the world can do, you will be paid much more because of that. That’s why it’s important to develop and learn or be different and be yourself.
The concept of “next alternative” is also important. What is the companies other options if you don’t do this job? If you are easily replaced, they can just replace you for the same rate, you have no bargaining power. The same works for you, if you can find something that’s much more higher paying. That’s your alternative. Then you can go to your company and tell them you have this other offer, can they give you a pay rise?
Always be learning
Work as hard on yourself as you do on your job.
The secret to getting a higher salary is to become better and better. By becoming the best person you can be, you become more valuable, and by becoming more valuable, you can give more to your company, you can help the company achieve more, and then you can receive more. If not it’s easy to get a higher paying job elsewhere.
I’ve never understand that people study at university for 3-4 years and then when they start working they stop learning and growing. Working is the start of your learning journey. With technology moving so fast, and so many resources available online, you can always be learning and becoming better. In fact, it’s essential that you do. Work can be a huge opportunity to learn new skills and try differnt things and learn and grow.
Think like an owner
In order to get a higher salary, you don’t just need to be better, but you need to give more value to the company. When a company is making double the revenue, they can easily afford to pay people more. So when you are thinking about your income you need to think of it from the perspective of the owner, and you also need to think of yourself as an owner. An owner of your work, and an owner of the business. A good manager helps people to become and feel like owners, but usually when people not paid as owners, it’s hard to think like an owner. That means many people don’t give their all, and they don’t get what they could.
What does the company need? How can we improve it? How can we boost sales or make it more efficient? These are some of the questions that it’s important to think about when asking for more.
As a CEO, the goals are often some combination of:
1) To grow the company to achieve some business goal – for us, it’s to make the best platform in the world for studying abroad
2) To satisfy customers – happy customers, builds a successful business. If we don’t satisfy customers, we don’t grow, we can’t pay salaries.
3) Build the best team and help them grow – company owners and managers want to be working great people who they enjoy working with, and who achieves amazing things. We want our team to grow and develop.
4) To satisfy shareholders – we received investment and so we want the investors to receive a good return
So when you ask for a pay rise, it’s a huge advantage to consider these goals holistically, rather than only your perspective, because when you talk to your manager, they are thinking about all these things.
Put yourself in the other persons shoes is one of the more valuable ideas in negotiation.
It’s not responsible for them to pay people higher salaries if those people are a commodity, or they can hire other people who can do the same work for cheaper. By overpaying someone, they have less resources to spend on other areas, to grow the company and satisfy customers, and hire more people and satisfy shareholders. It’s important to demonstrate your value, and that you think like an owner and understand the owner, and how you understand and will help to grow the company, and build the team, and think like an owner.
So that’s why negotiation and asking for a higher salary is the start of a conversation. It will also likely involve stages, and it can be tied to business goals or achievements, that can benefit the business, revenue or achieve more. If you can do this, then that will happen.
Aligning Incentives
A good manager will align incentives so the company performance and that the team’s incentives and contribution are all aligned, but it’s also something you can do too. You can have the conversation and make it happen.
When considering asking for a raise, it’s crucial to navigate a blend of personal ambition and professional valuation with tact. Here are some expanded points from the guide, emphasizing the nuanced approach required:
Understand the Dual Nature of Salary Increases
- Emotional Complexity: A higher salary can bring about a mix of emotions, from excitement to potential discomfort. It’s essential to introspect on how a significant increase might affect you emotionally and professionally.
- Market Worth vs. Personal Contribution: Recognize when you’re being underpaid relative to the market, but also honestly assess your contribution. Are you doing just enough, or are you truly excelling in your role?
Clarifying Your Desires and Goals
- Define What You Want: Beyond just a higher salary, consider what you’re truly seeking. Is it recognition, growth opportunities, or something else?
- Set a Clear Target: Having a specific salary target and understanding its impact on your life and work is pivotal. Visualize this new reality to align your efforts towards achieving it.
Preparation for The Conversation
- Market Research: Understand your worth in the market. This knowledge arms you with evidence of your value to the organization.
- Strategic Timing: Choosing the right moment for this conversation can significantly influence its outcome. Consider the company’s financial cycle, recent successes, or upcoming projects.
- Practicing Your Pitch: Articulate your contributions, achievements, and the value you bring to the team. Be ready to discuss your future potential contributions as well.
- Post-discussion Follow-up: Regardless of the immediate outcome, following up after your initial conversation shows professionalism and keeps the dialogue open.
Broadening Your Career Perspective
- Career Vision: Think long-term about your career trajectory. Early on, you might prioritize growth over pay, but this can shift based on personal circumstances.
- Unique Value Proposition: If you offer something unique, you’re not just another commodity. Highlighting unique skills or perspectives can strengthen your case for a raise.
Continuous Learning and Growth
- Ongoing Education: The landscape of work and technology is always evolving. Committing to continuous learning can make you indispensable and justify a higher salary.
- Thinking Like an Owner: Consider the company’s needs and how you can contribute to its success. When you align your goals with the company’s, you position yourself as a valuable asset worthy of investment.
Aligning Incentives
- Incentive Alignment: Discuss how your success and contributions can be aligned with the company’s goals. This approach not only demonstrates your commitment to the company’s success but also to your personal growth and satisfaction within your role.
In essence, asking for a raise is more than just a request for more money; it’s a reflection of your self-assessment, market value, and commitment to personal and professional development. By approaching this with a clear understanding, preparation, and alignment with the company’s goals, you can make a compelling case for your salary increase.
Further Learning
Here are some great books to learn more about this topic
- “Drive: The Surprising Truth About What Motivates Us” by Daniel H. Pink: Explores the importance of autonomy, mastery, and purpose in motivating individuals.
- “Lean In: Women, Work, and the Will to Lead” by Sheryl Sandberg: Discusses challenges and strategies for women to achieve their full potential in the workplace.
- “Daring Greatly” by Brené Brown: Offers insights on vulnerability, risk-taking, and professional growth.
- “What Color Is Your Parachute?” by Richard N. Bolles: A practical manual for job-hunters and career-changers.
- “The Art of Asking: How I Learned to Stop Worrying and Let People Help” by Amanda Palmer: Explores the power of asking in both personal and professional contexts.
- “Mindset: The New Psychology of Success” by Carol S. Dweck: Discusses the impact of a fixed vs. growth mindset on personal and professional development.
- “So Good They Can’t Ignore You: Why Skills Trump Passion in the Quest for Work You Love” by Cal Newport: Challenges the passion hypothesis and argues for the importance of skill and mastery.
- “Principles: Life and Work” by Ray Dalio: Offers a set of principles for personal and professional success.
Books on Negotiation
Books about negotiation are going to make you a better negotiator when you ask for a raise. It’s also going to make you better in your work, depending on what kind of work you do, and also improve your relationships too.
Read 10 books on negotiation in the next year, your life will change.
- “Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher and William Ury – A classic guide to negotiation that introduces the concept of “principled negotiation,” focusing on mutual interests rather than positions.
- “Never Split the Difference: Negotiating As If Your Life Depended On It” by Chris Voss – Written by a former FBI hostage negotiator, this book offers negotiation techniques grounded in human psychology and effective communication.
- “Bargaining for Advantage: Negotiation Strategies for Reasonable People” by G. Richard Shell – This book provides a comprehensive overview of the art and science of negotiation, blending theory with practical advice and personal anecdotes.
- “The Power of Noticing: What the Best Leaders See” by Max Bazerman – A guide to enhancing your observation skills to notice often-overlooked details that can be crucial in negotiations.
- “Influence: The Psychology of Persuasion” by Robert Cialdini – While not solely about negotiation, this book explores the psychology behind why people say “yes” and how to apply these understandings as a negotiator.
- “Difficult Conversations: How to Discuss What Matters Most” by Douglas Stone, Bruce Patton, and Sheila Heen – A practical guide to navigating challenging conversations, including negotiations, with less stress and more success.
- “The Yes Brain: How to Cultivate Courage, Curiosity, and Resilience in Your Child” by Daniel J. Siegel and Tina Payne Bryson – Offers insights into creating a positive and open mindset, beneficial for negotiators to foster agreement and collaboration.
- “Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond” by Deepak Malhotra and Max Bazerman – Offers insights from decades of negotiation research, teaching readers how to achieve outstanding outcomes in even the most difficult negotiations.
- “Start with No: The Negotiating Tools that the Pros Don’t Want You to Know” by Jim Camp – Advocates for a radically different approach to negotiation, suggesting that a “no” can often be more powerful than a “yes.”
- “Beyond Reason: Using Emotions as You Negotiate” by Roger Fisher and Daniel Shapiro – Explores the role of emotions in negotiation and offers strategies for making emotions work for you rather than against you.
