How to negotiate salary after a disappointing performance review 🤝
Set the meeting, be candid, & create a plan
I had a recent conversation with a marketer who was disappointed in his salary increase following his latest promotion.
I know that asking for more comp after a promotion gives off entitled vibes.
But, feeling under appreciated at work is a very real thing and it’s something that I’ve come across myself.
The good news is that I believe there are ways to get to a win-win outcome if it is approached the right way.
This post is an edited version of my discussion with him where I shared how I would approach asking for more comp.
Here’s the background of his situation:
He works at an advertising agency and was recently promoted from marketing manager to director.
His salary increase after the promotion was +$5k.
He’s worked at this company for over a year.
He’s had to take on more work as the person below him was let go.
He found out that the person that was below him was making more than him even after the salary increase.
He felt disappointed that his comp was not on par with that person given his workload and output.
The big question: Should he say something to his manager or let it go?
I told him that is always easier to negotiate comp before the annual review process comes up, but that a conversation is still worth having.
It’s best to not let these feelings fester as it can sometimes lead to resentment and more importantly, lost income.
I also mentioned that there could be a number of reasons why the comp package was lighter than expected:
The business might not be doing as well financially as he may think
His contributions might not be making it to the key stakeholders who actually make the final comp decisions
The business might be shifting its focus and making investments in other key areas
Either way, a discussion was worth having to learn more about where he stood.
Here are the steps that I recommended him to take:
1) Set a meeting with your direct manager
The first thing that I recommended him to do was to set a meeting with his direct manager.
And, the earlier the meeting the better.
The comp change is still fresh in everyones minds, which makes it a good time to bring this back up.
You typically want to avoid surprising management with a comp ask that is too far outside the typical review cycle.
It’s easy for them to counter with some version of: “we only do annual reviews during x month, so we will have to wait until then to re-discuss it.”
2) Be appreciative, but be honest
I then told him that he should enter the meeting showing a sense gratitude for the recent promotion and the comp increase.
You don’t want to come across as unappreciative.
But, that he should also share that (after some thought) he felt a bit disappointed with the comp portion.
I recommended that he should come prepared with a few past wins as a reminder for how valuable he has been to the company.
I also told him that he should avoid bringing up other co-workers’ comp packages (managers don’t like that).
But, that he could share that he knew that the market rate for marketing directors in his area was around $x/year, which he felt was more aligned with his workload and output.
3) Re-commit to the company
His manager will likely be surprised that the ask is coming so soon after the last review and their initial response may be a bit defensive.
This is where he should double down on the company and it’s vision to recenter the conversation.
Share that he has enjoyed his role so far and that he is really excited about where the company is headed.
This will help put his manager at ease that he is not jumping ship if a comp change doesn’t happen right away.
The goal here is to guide the conversation back to common ground and highlight that he is willing to be creative in solutions to make it a win-win for both sides.
4) Share what your comp goals
After the dust has settled, then the next step is to re-iterate what his comp goals are.
This could be to get to the market rate that he mentioned or something else.
Be transparent and clear here.
Employers ultimately want to know where their employees heads are at to avoid any future surprises (like him leaving for another role with a higher salary).
5) Ask if there is an opportunity to conduct another review in 3 months if certain goals are met
I told him that he should be understanding and flexible in this portion of the conversation given that a review just took place.
But, ask if certain goals or KPI’s are met, then could it unlock another review opportunity?
This:
Helps recenter the conversation around a specific outcome
Shows that he is willing to work within the constraints of the business to first prove value to the company before more comp is awarded
6) Align on the KPI’s and set the date for the next review
Finally, align on what those goals or KPI’s are and set a date for the next review.
I told him that if manager is not willing to budge in comp or co-author a plan for another review session, then he knows where he stands.
And, then he can make his next move accordingly.
I’d be curious to hear how others have approached this in the past?
Let me know in the comments section!
That’s it for this week,
-Trent
PS: If you haven’t seen my last post on creating a growth dashboard, then feel free to check that out here.