Tag Archives: Salaries

The Seven Factors That Influence Your Salary

To orient you with the way salaries are evaluated by employers, here are the seven factors–and some would be considered discrimination.  We hold nothing back here at SpringRaise.

1. Salary and Education. How educated you are matters in your salary.
2. Salary and Gender. Right or wrong, it has been documented that men often make more than women for the same job.
3. Salary and Weight. This would be considered discrimination by law, but your weight can influence how others perceive you and your value.
4. Salary and Years of Experience. How long you’ve been in the workforce and/or in your particular industry matters.
5. Salary Band. Where you are in your company’s salary band can influence your next raise amount.
6. Peer Salary. What your colleagues make can definitely influence how much you get paid. Knowing what they make is a big factor.

And  last, but most importantly…
7. Salary Negotiation. How well you negotiate at performance reviews or for new jobs can make a major impact on your lifetime earnings.

We at SpringRaise want you to know the seven salary influence factors so that you can manipulate them to your advantage.  Spend some time here and you’ll find a wealth of information that can help you make more money now and throughout your career.

For FREE sample salary negotiation letters, just fill out the form below with the subject “Seven” and we’ll send them to you right away.

* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject

Salary Band

Once you spend some time on the other side of the negotiations table, you will realize that there is a pretty wide salary band of what the company would be willing to pay you and your peers to do your job. Some people are shocked to find out that two people that do the exact same job at the same company could be getting paid up to a 30% difference in salary. What is the main reason for the gap in salary? It really comes down to how well those people negotiated their salaries. If you think you are underpaid, don’t despair! By knowing where the band is, you can more easily get what you deserve.

1. Know how much you can ask for and still be in the Salary Band. The truth is that companies obviously don’t want to pay employees salaries at the high end of the salary band, but they can pay employees salaries at the high end of the band. This is why the band exists. Your job is to know where the band is so you know what kind of decision is just a matter of a manager paying you a little bit more (within the band) and asking to make a special request (outside of the band). If you know the high end of the band and you ask for a raise that brings you up to what your peers make, it can be as simple nod by your manager to get what you should be getting.

2. Know how much is too much because it is out of the salary band. On the flipside, if you walk in with confidence and ask for salary that is outside of your salary band, your manager could start seeing this as a request to move into another salary band (that may involve a promotion and title change). Although this is not necessarily a bad idea, it is just a different kind of negotiation in the eyes of your manager and would impact all sorts of other human resources issues for the manager (requisitions, open job searches, creating a new job description, impact on other members of the team, changing roles and responsibilities, etc). This may not be what you are actually asking for. Either way, it is really important for you to know where the lines are for your salary band so you can what you need.

Understanding salary bands is critical for negotiations when you are asking for a raise within a company that you are staying with and you have already tied to a specific salary band. It gets a little trickier when you are in a negotiation with a new company because the hiring manager may have the authority to pick you up and put you in an entirely different band. Again, this isn’t something to fear, it just means that you are going to need some more information in order to get what you deserve. Understanding the salary band is important, but again it is only a part of the whole picture.

For FREE sample salary negotiation letters, just fill out the form below with the subject “Band” and we’ll send them to you right away.

* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject

IMG_0531

Salary

Happy New Year everyone!  As a major part of your total compensation, salary is the component that is what you get paid on your paycheck. There are many factors that influence your salary–some which are warranted, and others which may be a bit more controversial or subtle. At SpringRaise, we’re here to help you get the highest salary possible at every event throughout your career, whether it’s a raise, a promotion, changing jobs, or other opportunity to maximize your salary.

I’ve had many “springraises” throughout my career–raises in excess of 10% and even sometimes more than doubling my salary.  Check out the chart below to see my career compensation development.  After that, we’ll show you the seven factors that impact salary in your career.

Amazing!  I can show you how to get these types of raises throughout your career.

The Seven Factors That Influence Your Salary

To orient you with the way salaries are evaluated by employers, here are the seven factors–and some would be considered discrimination.  We hold nothing back here at SpringRaise.

1. Salary and Education. How educated you are matters in your salary.
2. Salary and Gender. Right or wrong, it has been documented that men often make more than women for the same job.
3. Salary and Weight. This would be considered discrimination by law, but your weight can influence how others perceive you and your value.
4. Salary and Years of Experience. How long you’ve been in the workforce and/or in your particular industry matters.
5. Salary Band. Where you are in your company’s salary band can influence your next raise amount.
6. Peer Salary. What your colleagues make can definitely influence how much you get paid. Knowing what they make is a big factor.

And  last, but most importantly…
7. Salary Negotiation. How well you negotiate at performance reviews or for new jobs can make a major impact on your lifetime earnings.

We at SpringRaise want you to know the seven salary influence factors so that you can manipulate them to your advantage.  Spend some time here and you’ll find a wealth of information that can help you make more money now and throughout your career.

For FREE sample salary negotiation letters, just fill out the form below with the subject “Salary” and we’ll send them to you right away.

* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject

Maximizing Salary When Changing Jobs

OK, this is one of my secrets that I’m going to share with you. One thing everyone wants to know is how much of a jump in compensation should we get when we change jobs? There is a certain art to this, but there is a process that I use. My father told me when I was starting out that I shouldn’t change jobs unless the offer is 20% higher than my current compensation.

Salary Increase Benchmark
My father does deals for a living, so I’ve learned from a pretty good teacher about salary increases. In taking his lessons to heart, not accepting what someone tells me at face value, why take his word that 20% is enough? I didn’t. Over the course of my career, when I’ve changed jobs, my average increase in compensation is 30% and on average I’ve increased my salary 16% per year.

Confidence
Negotiating higher salaries is a function of communication, experience, and confidence. When we have our story straight and our minimum compensation threshold defined, there is no losing in the negotiation. If we are offered what we want, then great. Otherwise we walk. It’s simple.

What people tend to forget when looking for their next career move is that the company we just interviewed with spent thousands of dollars just to get us in that chair. That’s an investment they’re not keen to lose when they find a candidate they covet. That knowledge immediately swings negotiations in our favor. Have confidence and get the salary you deserve!

For FREE sample salary negotiation letters, just fill out the form below with the subject “Max” and we’ll send them to you right away.

* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject

peace-sign

People Don’t Leave Jobs-They Leave Managers

We are in the midst of a recession, but there is still a lot of job changing. In certain in-demand positions like computer programmers, they leave because greener pastures literally mean more green. The money out there for computer programmers is obscene. Try hiring one and you’ll see what I mean. Yet I digress from the point–have you ever thought why people leave their jobs even when they’re paid well? Most of my mentors have told me that people rarely leave their company, they leave their managers. Therefore I’ve spent much of my career developing others, helping them to find their paths to success.

Developing others as a manager is helpful to both you and your employee because the better he/she is, the better you are. Your results will be better than they would otherwise be and you will see higher raises. You can also expect to pay the employees you develop more based on their productivity. That’s the best part about being a manager and negotiating salary with strong team members. They feel like you’re treating them fairly and you would be. Negotiations go smoothly.

The caveat to the above is when people have the information that they are underpaid versus their peers or someone with the same background. Armed with that information, people will seek the highest compensation for the same work, no matter what the perceived benefits are of staying at their current position. Once you lose that trust with your team that they’re paid commensurate with their achievements, then you can watch them walk right out the door. They’ll be leaving their manager AND their job.

To keep people, you have to develop them.

________

If you want FREE Winning Resumes, just fill out the contact form below with the subject “Winning!” (I can’t resist that) and we’ll send you the guide right away.

Your Name (required)

Your Email (required)

Subject

Your Message

when-to-ask-for-a-raise1

Top 5 Situations When You Should Ask For A Raise

I have a google alert for “ask for a raise” because many people are entering  the process of salary negotiation. In the past two weeks, I’ve had more than two dozen alerts hit my inbox. This is about double what I see for that particular alert over a similar time period. People need money, and they need it now.

It begs the question, when should someone ask for a raise? Is there ever a good time when it’s not part of the performance management cycle? How should you go about asking for the raise? These are valid questions and I have some rule of thumb answers that can help.

Question: When is a good time to ask for a raise (outside of the performance management cycle)?

Situation #1: Anytime you get significantly increased responsibility. If someone leaves your department and you have to pick up the slack, then you have an opportunity to ask for a raise. Do NOT ask for a raise right away, though. Show that you can do both jobs and then ask. You will have a better chance of getting the raise you want if you prove yourself.

Situation #2: Anytime you have an offer for another job whether it’s an internal move or to a new company. At that point you have leverage. If you’re good, they’ll want to keep you, so you can leverage the offer even if it’s even or only slightly higher than what you make now. It’s expensive to recruit and hire a replacement so it’s cheaper to give you your raise.

Situation #3: If you’re a performer and you haven’t had a raise in more than two review cycles. This situation is tenuous because you may not have received a raise because of poorer performance. If you know that you’re a strong performer (be honest with yourself), then you should have confidence in asking for a raise.

Situation #4: When your team wins a company award. These are the times to ask, but it’s usually a setup for your performance review. When the team wins an award, then you have recognition on your side. Your boss will be basking in getting the award, so it’s a good time to ask.

Situation #5: When you hear about someone in your same job making more money than you. This is a political play that often works, but not always. When you see peers doing your same job, but make more than you do and you’re a strong performer, you can justify asking for a raise.

If you follow these guidelines, then you have a much better chance of getting your raise. If you want to see how to best negotiate your salary and the information you need where they can’t say no to your request, then check out our Salary Negotiation Guide.

For FREE sample salary negotiation letters, just fill out the form below with the subject “Top 5″ and we’ll send them to you right away.

* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject

Salary and Gender

Salary and gender go hand-in-hand. We all have heard of the statistics that women get paid less than men for the same job. An infographic from whitehouse.gov shows even more recent data.  That needs to change.

But to figure out where we are, we have to keep up on the research. There is a recent article in the Washington Post called “Salary, Gender, and the Social Cost of Haggling“. The point of the article is to enumerate how social dynamics dictate whether men and women should negotiate for raises and higher pay. So who’s better, men or women?

The answer is both. The goal in salary negotiation is often to maximize your compensation given your circumstances.

Men
What the academic researchers in the article suggest is that men often feel more comfortable asking for more money because they correctly believe that they won’t be penalized for doing so. That’s a cultural norm that leads to discrimination in overall compensation. Breaking that won’t be easy for any manager. Awareness is the key.

Women
Women, conversely, have the social recognition that their penalty for asking for more money is much higher than that of men. Therefore, they are maximizing their salaries often by NOT asking for more money. It’s this cultural norm that’s so troublesome. How can we both encourage women to negotiate while not penalizing them from the other side of the table? This double-edge leads to depressed salaries for women.

So what does all this mean to salary negotiation? I believe it indicates that when you can justify a higher starting salary or better raise, then you MUST try. On average, you will get more money (7.4% more according to the article). If you perform up to the value, then no one will think twice about paying your price. Asking for higher compensation without compelling justification can result in greater penalty because the perception of the hiring agent could be that you are driven first by greed rather than the goals of the company. Often companies see that as a red flag, man or woman. Prepare, prepare, prepare.

Salary Calculator

A Salary Calculator is a very useful tool for going into a negotiation but there are definitely a lot of pro’s and con’s with leaning too heavily on what you learn from a salary calculator.

Pros:

1. Salary Calculators are an easy way to get a quick datapoint on what you should be earning. They can be fast and easy to get access to (often free).

2. Lots of smaller companies that don’t have access to more expensive data or don’t have comparable hires to you will rely heavily on salary calculators. Although you may disagree with the number that they are thinking about, it is vital to know what they are thinking.

Cons:

1. Salary Calculators are based upon survey data in order to figure out the industry averages. Depending upon the depth of the research, the averages can often ignore a lot of the smaller companies. It is much harder to get data on companies with less than 100 employees (they often don’t report their data and the data can be harder to find). This means that salary calculators are not always based upon data that is appropriate for the company that you are talking to.

2. Salary Calculators are usually only based upon titles and years spent at a job. Often companies will inflate or deflate titles to make up for lower or higher salaries. We all know that an assistant manager position at a Fortune 500 company is a lot different from an assistant manager position at a two-year old startup. Salary calculators can lump all of this together and not necessarily give you the information that you need.

3. Salary calculators can be difficult to us in negotiations because there are so many of them out there and other than the summary data, you usually cannot get access to the underlying data or a sense of how accurate it can be. The other person across the table from you could have a different salary calculator based upon a different set of data as well.

You should definitely look for a salary calculator as another data point, but you still need to do the additional homework in order to figure out what benchmarks are most appropriate for your personal situation. Your goal is to walk into a negotiation with appropriate salary information that represents you. With that kind of information, you will have a lot easier time getting what YOU deserve.

Salary Negotiation Email

Sometimes it’s necessary to write a salary negotiation email to clarify your position and ask for higher salary. While we at SpringRaise recommend you do as much negotiation as possible in person, over the phone, through a recruiter, or even an HR rep from the company you’re interviewing with–an email can be a powerful way to justify your request for more money.

Key Salary Negotiation Steps

There are steps you must follow in salary negotiation that will better position you to get paid what you want and deserve.

  1. Know how your salary compares to others doing similar jobs.  This can be accomplished in several ways of which SpringRaise recommends a path in our salary negotiation guide, SpringRaise Your Salary.
  2. Understand what data you need to convince the company that you’re worth the money you want.  Certain pieces of data compel employers not only to consider your request for more money, but in good faith, to actually accept it.  [Our salary negotiation guide lays that all out for you.]

If you must write a salary negotiation email, it must achieve two goals:

1. Justify your request for higher salary

Justification of a higher salary request can be difficult because there are few external sources that a company will consider valid to justify your request. There are some great pieces of information that companies do use including salary surveys. These surveys are sold to companies so they can get a sense of what competitive salaries are at different levels. If you have that report, then you have equal ground.

2. Convey that you’re willing to walk away from the offer

Positioning in negotiation is key. The ultimate power in a salary negotiation is walking away. Companies spend thousands of dollars to get people in the seats to interview. When they like someone, they WANT that person. If you are that person and there’s a credible threat that you’ll walk away, companies tend to negotiate. Let me make this clear:

It is cheaper for them to increase your salary than it is for them to keep looking for candidates.
I have hired many people throughout the course of my career and this is generally accepted law, not theory. It’s a secret employers don’t want you to know! So have confidence and don’t be afraid to actually walk away if the salary isn’t right.

Note, and this is VERY important: Don’t try to justify your salary increase by using only salary calculators. That will offend the person with whom you’re trying to negotiate. Why? Because salary calculators are unreliable and companies believe they already offered you a competitive package.

Your justification must have more meat to it, including your current salary, and whether you would have to take a pay cut. If you have the salary information for someone at that company at your entry level, then using that would be beneficial. This is extremely important in winning your negotiation.

Also, your justification should also include something that will benefit the company AND your manager directly. Give the manager something to look forward to when hiring you at your negotiated salary.

FREE Sample Emails:  If you would like FREE sample salary negotiation emails, simply click here then fill out the form and we’ll get you your samples right away.

Note: Be sure to check your SPAM folder if you don’t receive your email within a few minutes after submitting the form.

negotiation-techniques-8

Salary Negotiation Techniques

When you want to maximize your take-home cash, it pays to have solid salary negotiation techniques in your arsenal. The key to winning in any negotiation? Information. You have to arm yourself with more information than the person you’re dealing with because most often that person holds the keys to your salary increase.

If you would like FREE salary negotiation letters, just fill out the form below with the subject “FREE” and we’ll send you your samples!

There are a number of methods out there to enhancing your knowledge including:

* Using a salary calculator
* Buying a salary range report
* Knowing peer salaries
* Looking at a relevant salary survey

Let’s be clear. Most employers don’t like you using these tried and true techniques. Why? Because it increases your chances of getting a higher salary than they want you to have. Their business is to get the most out of you for the least amount of money.

At Springraise Salary Negotiation, our goal is for you to get paid what you’re worth in the market for people doing your job, with your background and special talents.

There are many tips and tactics you can use. But if you care about your compensation, then this salary negotiation approach will change your career.

Think of salary negotiation as a process

When coming up on a career event (raise, promotion, new job, etc.), prepare for it like you would any event or meeting. You wouldn’t go into a big meeting with a client or partner unprepared, would you? Do the same for yourself! It’s time for you to get paid first. Our Springraise Salary Negotiation guide, Get Paid*, takes you step-by-step through the process. It details the information you need to WIN your negotiation. It provides real-world examples of how these techniques have led to double-digit, even TRIPLE-digit compensation increases! You’ve got to check it out.

***Special Offer for Kindle and Kindle App Users–Get our Salary Negotiation Guide for 33% off. Only $2.99!***

Set a Goal

Every time you declare that you want something, you tend to get it, don’t you? That’s the power of setting goals. When you set it, you get it. The same is in salary negotiation. Set that goal and prepare relentlessly to get it. See yourself winning in that salary negotiation and you increase your chances of making it happen.

Know others’ salary

It makes sense to know where you stand salary-wise versus your peers in your position. Feel free to ask! It may be taboo at some companies, but that’s because the employers don’t want you to drive up their costs! They have more information than you do because THEY know how much money others at your level make. Time for you to even the playing field. Salary comparison is a great technique that goes underutilized because people are afraid of consequences. Have no fear! Get the information you need to win.

Know who you’re dealing with

Who’s at the other side of the table? What does that person want or need? How is his or her success measured? Can you make their company or that person more successful just by being there? Knowing these answers will make you more valuable to the decision-maker. That translates into dollars.

Always Negotiate

Sometimes you prepare so well and set your goal that you achieve it based on the first offer you get. Fantastic! Congratulations! But it’s not over. It pays to negotiate. Assume you’re getting the lowest offer they can give. Push the envelope, but softly. If you want the job, raise, or promotion, that’s the goal. Never hurts to push a bit on the salary if done well.

Accept or Decline Gracefully

You don’t always accept offers–in fact, you can only accept one at a time, right? When you have multiple offers (and you will), you are indirectly expanding your network when interviewing. Don’t burn bridges. If you’re not taking a job, decline gracefully. Send a letter or email in addition to doing so over the phone or in person. Consider inviting the person to be a LinkedIn contact. If you accept, then all the above still pertains, but now you get to wow people in your new position. Here’s an example of a decline letter that I wrote. After reading, the employer (IBM) said I had a six month open door to come back and not have to go through the interview process. Now THAT’s building bridges.

Utilizing these salary negotiation techniques will get you well on your way to achieving your goals. Get yourself paid for the work you do. You’re worth every penny!

If you would like FREE salary negotiation letters, just fill out the form below with the subject “FREE” and we’ll send you your samples!

***Special Offer for Kindle Users–Get our Salary Negotiation Guide for 33% off. Only $2.99!***


* denotes required field

Your Name*

Your Email*

Your Situation*

Your Geography*

Your Salary + Bonus* (separate salary and bonus)

Subject