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Ask HN: Advice for discussing a substantial raise with my employer?

3 points by kadabra9 ↗ HN
Three years ago, I was hired by a small local company at a fairly lowballed salary. At the time, I didn't really mind because the company seemed like they had some interesting projects to work on, and I didn't know what I know now about salary negotiations (e.g I sucked at it).

Recently one of my old friends has moved into a hiring role at a huge ecommerce shop, and we've met a few times and discussed me joining his team, at a salary 30% above what I'm at now. At my current employer, my skills, projects, and responsibilities have increased a lot over the last 3 years, but my salary has not (last year my raise didn't keep up with inflation, despite the company having its best year ever).

Is it even worth having a conversation with my manager about these concerns? If so, how do I approach a conversation to discuss a substantial raise or why my salary is so low relative to the market?

I kind of feel like I should just accept the new role and move on, since I suspect my current employer will fight tooth and nail to get me to stay, but wanted to see if anyone has been in a similar situation, and how they've handled it.

8 comments

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iends
If you want to stay at your current company, what do you have to lose by asking for a raise? (I'd probably do so without mentioning another offer.)

If you have no intentions of staying (e.g. it's about more than the money), then no point in asking.

TWAndrews
I've been I similar situation a couple of times, both if which resulted in substantial salary increases. The main thing is to clearly and deliberately decide what your best case scenario is, what sort of salary difference between the new job and current one will let you stay and not feel taken advantage of.

When you go in to discuss you salary with your current employer, make sure you know what your walk-away number is. During the discussion frame everything in terms of benefit to your employer.

ronyeh
Get a job offer with a $hard_salary_number. Tell your boss you got an offer with another company, but would consider staying for $hard_salary_number * 1.15. If not, leave and go work with your old friend.

If you actually just want the new job, no reason to stay. But if you really really really like your current job, it doesn't hurt to get the new offer and then ask for a raise. If the raise doesn't happen, leave.

idunno246
A lot of people I worked for, if you gave then an ultimatum like this they'd tell you to leave. Better to frame the discussion around the value you bring to the company, and generic market rates, than having an offer. I've lost key members of teams, people who were not replaceable by anyone currently at the company, who tried the other job offer thing
TWAndrews
It's a matter of framing the ultimatum correctly--explain that you've got an offer, and though you really would prefer to stay, you don't see how you can pass this up. Say thanks and let them know when your last day will be--they'll either come up with the idea to make a counter offer on their own, or they won't and a raise wasn't in the cards.

For this to work, however, you do have to be willing to actually leave. If you really just want a raise, better to just ask for it--you can use the offer to explain what salaries for someone with your experience/skills are.

linux_devil
There is a quote : "Conversation which you resist, is the conversation you must have" .

Nothing to loose , speak out your mind , and if manager disapproves , you are not loosing anything.

covgjai
It is not worth staying at the current company. You better ask your old friend what you feel your worth. Sell your self and you will get what you want.
byoung2
My average salary increase when staying with a given company without getting a promotion is 6% (the biggest I got was 11%). My average raise with promotion is 15% (highest was 23%). My average salary increase by switching companies is 30% (highest being 37% twice).

The takeaway is I expect an average of 6% per year when staying with a company multiple years, or 15% if I get a promotion. If I want more, and there is no promotion to be had, I have to switch companies. A company that is inclined to give you 6% will not want to give you 30%, especially when threatened. Take the other job.