First a job is documented by a hiring manager who writes a job description. The hiring manager talks to their senior leader and gets approval to hire someone into the job.
Then HR/Compensation evaluates the job. This means they do research to figure out what other employers are paying for that job to be performed. A pay grade is assigned to the job so there is now a base salary range and short-term incentive target (bonus or sales commission) that can be offered to a new hire.
Next, a candidate is selected based on their qualifications and performance throughout the interview process. And HR/Compensation and the hiring manager determine what base salary to offer the candidate.
Ideally, the candidate accepts the total compensation (base plus bonus or commission), and the start date is agreed upon.
If you are unhappy with the total compensation you received as a new hire, know that once you prove that you can meet or, better yet, exceed the expectations of your employer you can ask for a base salary increase.
But the “ask for more” needs to be based on the following:
1. What are the company’s biggest goals? What are the obstacles to those goals?
2. What are you doing in your job to help the company achieve those goals and overcome those obstacles?
This is your value story. Once you share that with your manager, then you can ask for more money.
But if you lead with “I want $X” without putting your ask in the context of that your employer cares about, you will be told no again and again.
And timing matters. Start having this conversation with your manager six months before the merit increase and performance conversations happen.
It takes time for your manager, HR, and your manager’s boss to all agree on giving you a higher base salary increase.
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