Tag Archives: What Your Peers

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.

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3 Ways to Make More Money

Let’s face it. We all want to get paid the highest amount possible for doing our jobs. The jobs we do help our companies make a lot of money and without employees many of the great products wouldn’t come to market. How many of you feel like you’re adequately paid for the value you provide to your company? I didn’t think so. How then can you earn more money for doing what you’re doing?

1. Get in a hot industry – easier said than done right? Well you know what the hot industries are , and if you don’t there are websites than can tell you. How do you get into that industry? We all have transferable skills. Map out your experience in what I call an “experience matrix”. Want a surefire way to know if you’re in a slow industry? Figure out if your raise was lower than the national rate of inflation. If you’re an above average employee and your raise was that low, then you’re in a slow industry.

2. Work smarter AND harder -when you work smarter at your job you become highly productive at doing what you have to do….but this frees up time…for pet projects that are risk free and may actually bring value. Doing things differently is what makes you stand out above your peers and bring more value to the company. Most companies actually do reward creativity and dedication.

3. Know your market value – keeping an eye on what your peers make can let you know if you’re underpaid for your job. The best way to do this is to ask your peers (or use springraise.com, of course!). True, most managers don’t like their employees comparing salary notes, but that’s self serving. It’s a manager’s job to keep payroll as low as possible. It’s your job to get paid as much as possible, and knowing how much people make around you can help you. At my first job out of college after I’d been there a year, I learned that newly hired undergrads were getting paid more than I was-and that’s with the promotion I had just received! I used that knowledge to go to my manager to request more money. And I got it-a 16% raise.

These methods not only work separately, but also in combination. Think about if you’re in a hot industry, you’re outperforming your peers, and you know you could get paid more, then all of those things can work for you to get extraordinary salary increases. I was a management consultant in the mid 90s heyday and had worked smarter and harder than my peers. I also knew that I joined my company making slightly less than the average person at my level. Therefore, I got an 18% raise since I was seen as a top performer. Those kinds of raises only occur in hot industries where profits are strong and companies have to reward top talent in order to keep them happy and not look to jump ship.

To get those high raises, follow these techniques, and combine them when possible. You’ll find your compensation will explode and you’ll attain all of your career goals.

For FREE sample salary negotiation letters, just fill out the form below with the subject “3 Ways” 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

Should You Talk Salary With Your Peers?

Recently on Good Morning America, the CEO of a career website was discussing the use of salary data to help careers through salary negotiation.

Essentially the positioning of the segment was that sharing salary information among colleagues was seen as “office gossip”, thus discouraging the practice. Knowing what your peers earn is a fundamental way to ensure “equal pay for equal work”. If that’s now seen as un-American then so is feminism.

Diane Sawyer is one of the best in the business, but that piece took the perspective that an employer wants to portray. Employers want you to think:

  1. Salary websites are merely gossip sites that have invalid information
  2. Using information from the internet doesn’t take performance into account so it can’t be used for negotiation purposes
  3. Having conversations regarding salary among peers is akin to corporate espionage–or worse, the equivalent of The Enquirer.

At Springraise, it’s our belief that this attitude stunts career progression and compensation. Having an open dialog about compensation among peers is a good thing and can lead to higher motivation and healthy competition among peers. Sure, bitterness could result if one person resents being paid less than another, but that’s not the peer’s fault. It’s the fault of the hiring manager and the company guidelines.

Each of us has to measure success in ways we feel comfortable. Blatantly discouraging discussions about how compensation and performance are correlated, however, is nothing more than self-serving to the employer. It is our policy at Springraise for all employees to know exactly how others are compensated. We live what we profess.

Salary Negotiation Tips

Let’s face it. We all want to get paid the highest amount possible for doing our jobs and salary negotiation tips are hard to come by. The jobs we do help our companies make a lot of money and without employees many of the great products wouldn’t come to market. How many of you feel like you’re adequately paid for the value you provide to your company? I didn’t think so. How then can you earn more money for doing what you’re doing?

1. Get in a hot industry

Easier said than done right? Well you know what the hot industries are , and if you don’t there are websites than can tell you. How do you get into that industry? We all have transferable skills. Map out your experience in what I call an “experience matrix.” Want a surefire way to know if you’re in a slow industry? Figure out if your raise was lower than the national rate of inflation. If you’re an above average employee and your raise was that low, then you’re in a slow industry.

2. Work smarter AND harder

When you work smarter at your job you become highly productive at doing what you have to do….but this frees up time…for pet projects that are risk free and may actually bring value. Doing things differently is what makes you stand out above your peers and bring more value to the company. Most companies actually do reward creativity and dedication.

3. Know your market value

Keeping an eye on what your peers make can let you know if you’re underpaid for your job. The best way to do this is to ask your peers (or use springraise.com, of course!). True, most managers don’t like their employees comparing salary notes, but that’s self serving. It’s a manager’s job to keep payroll as low as possible. It’s your job to get paid as much as possible, and knowing how much people make around you can help you. At my first job out of college after I’d been there a year, I learned that newly hired undergrads were getting paid more than I was-and that’s with the promotion I had just received! I used that knowledge to go to my manager to request more money. And I got it-a 16% raise.

These methods not only work separately, but also in combination. Think about if you’re in a hot industry, you’re outperforming your peers, and you know you could get paid more, then all of those things can work for you to get extraordinary salary increases. I was a management consultant in the mid 90s heyday and had worked smarter and harder than my peers. I also knew that I joined my company making slightly less than the average person at my level. Therefore, I got an 18% raise since I was seen as a top performer. Those kinds of raises only occur in hot industries where profits are strong and companies have to reward top talent in order to keep them happy and not look to jump ship.

To get those high raises, follow these tips, and combine them when possible. You’ll find your compensation will explode and you’ll attain all of your career goals.