WSJ Reports Companies Are Planning Big Raises (So How to Negotiate Yours?)
- On January 8, 2022
The Wall Street Journal reported earlier in the week that big raises are coming for 2022! Companies are setting aside on average 3.9% of payroll for wage increases, the largest jump since 2008. How do you get a raise? Game on!
- Discuss your value. WSJ cautions against citing inflation as a reason to get paid more (not sure what lawyer would do that anyway) and to discuss your value instead. I recommend lawyers give evidence like number of deals closed, money saved, processes improved, clients satisfied, efficiencies gained, etc. See my prior post here for more ways to measure lawyers’ accomplishments.
- Try not to give a number first when interviewing for a job. WSJ quotes a career guru: “It’s the responsibility of the company to pay you fairly, not for you to guess what you think is fair pay for you.” See here for my tips on how to handle questions on salary.
- But gather data on reasonable comp. WSJ suggests checking out Payscale and Glassdoor. (For other resources, see here.) And talk to contacts at that company or in a similar space to find out what’s reasonable. I see in the Bay Area comp structured as base, bonus, and equity, so find out the range for each before you negotiate. At a minimum, suss out what that type of job would pay in Colorado (or New York which also is requiring salary to be posted with the job) and know it would pay at least that much in the Bay Area.
- When negotiating with your current employer, it’s helpful to have a good track record at the company and another offer. WSJ says “[w]orkers who stuck with their employer last year and were successful often have room to say, ‘I’ve helped to shepherd the company through this pivotal time, and I want to see that reflected in my paycheck.’… The strategy also works when seeking more flexibility or perks, such as time off or additional staff support.” WSJ notes on the one hand some employers will only negotiate if they risk losing you, and on the other some employers won’t counter/will let you go, so understand there’s inherent risk. Since the market is so frenzied in the Bay Area, I would say most manager would not be surprised if you are asking for money and know they have to go to bat for you to keep you (especially if you ask nicely).
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