The idea of negotiating a pay raise can be overwhelming, but an intentional approach can yield unexpected benefits for both you and your employer. The relationship with your company is built upon trust that is grown or diminished over time. A transparent conversation about compensation requires honest reflection on this relationship, which can be complex and difficult.
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The discussion is further complicated because most employees lack adequate information. You most likely do not know how much your colleagues earn and do not have access to the information needed to understand the financial health of the office. While these unknowns can present challenges, there are tangible ways to ready yourself for compensation negotiations with your employer.
Know Your Market
- Understand the local market and compare the compensation of similar positions. Determining the demand for your position at competing firms will give you confidence in quantifying your value to your employer. Cite reputable resources including:
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2019 Pittsburgh Equity in Architecture Report
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- Review global, local, and firmwide business trends and projections to understand the current and future health of the profession. This will help you to identify the likelihood that your employer can provide a raise. The completion of recent successful projects as well as new employees may indicate that your company can increase compensation for those who have contributed to this shared success. Alternatively, requesting an oversized raise at the height of a recession may not be aligned with your firm’s financial capabilities.
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- Prior to your meeting, request that your firm provides some level of pay equity transparency. Ask your company to review the officewide salary structure and identify gaps, trends, or inequities. The findings of this report can be shared alongside a corrective action plan, if needed. Request written criteria for bonuses and advancement to provide clarity for the expectations of each position.
Know Your Finances
- Keep a thorough record of your starting salary and benefits and update this record as it changes. Reflect on this history and suggest that your compensation is aligned with this trajectory, or that it is intentionally realigned.
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- Adjust for inflation. If your recent salary increases are simply keeping pace with the rate of inflation, it is time to talk with your employer. The U.S. Bureau of Labor Statistics publishes the Consumer Price Index (CPI), which is a weighted average of goods and services. Changes in the CPI help markets to assess the cost of living per region and periods of inflation or deflation, and these rates should be evaluated in relation to your salary.
Know Your Value
- Throughout the year keep a list of notable achievements:
- Projects: Maintain a list of notable project achievements and your specific contributions to the success of these projects.
- In-Office Initiatives: Maintain a list of your contributions to the firm that are not project-related. Perhaps you are organizing lunch and learns, improving office-wide systems, or advancing new technologies. These are all valuable to the continued growth of a firm and benefit your office.
- PR: Maintain a list of your contributions outside of the office. As you become involved in professional organizations outside of the firm you are strengthening the reputation and presence of your office in these other realms.
- Conferences: Have you attended conferences where you were able to bring valuable information and tools back to your firm? Did you have an opportunity to speak at a conference? Participating in a conference is not only valuable for you, but also beneficial for your firm to demonstrate expertise and network at a larger scale.
- Maintain a list of things to improve. The self-identification of areas for continued growth and development indicate that you are excited to continue to grow your expertise. An open conversation with your employer can strengthen these goals and uncover new opportunities as you continue to make meaningful contributions to the office.
Be Creative
If your company is unable to provide a monetary raise that aligns with your request, consider other ways to come into alignment. Consider additional paid time off (PTO), flexible working hours, or other incentives that will benefit you and your work. Remember that your compensation is a whole package and not just salary. Some people may value time off or flexible working hours more than compensation. Others may value 401K matching, healthcare, and parental leave over PTO and salary. Negotiating is about what YOU value.Â
Write It Down
- Enter salary negotiations with real ranges for what you will accept. Keep different thresholds for your realistic, reach, and rejection thresholds and negotiate toward those numbers. The online resources and reports listed above are great to help you determine realistic numbers for your ranges.
- Prepare a clear written request that you share with your employer. In conversation it is too easy to undermine your own goals and intentions but having a thoughtful written request in hand strengthens your commitment to your approach. Â
- Follow-up in writing to confirm the amount you have requested and/or the amount offered. If these numbers are not aligned, schedule a follow up conversation with the intent to come to an agreement on a fair and appropriate compensation package.
Compensation negotiations can deliver tangible benefits to your employer as well. Increased compensation signals that you are valued by the firm and can lead to increased satisfaction with your job and improved performance. Employers are better able to retain valuable staff, bolster employee satisfaction, and continue to grow their firm through a culture of integrity and respect.
Finally, just as important as the actual request is how the proposal is made. Remember that there are no winners or losers, you are seeking mutually beneficial agreement. Too often these conversations are approached in an adversarial way that undermines constructive conversation and resolution. With that in mind, contemplate how you will react if your request is not met. Envision numerous scenarios that all conclude with you exiting these salary negotiations with grace. Whatever the outcome, the process of reflecting on your work, initiating the salary negotiation, and committing to the conversation is valuable for continued growth and professional development.
Written by Brenna Shaffer
Brenna Shaffer, AIA, WELL AP, LEED AP BD+C
Associate at Rothschild Doyno Collaborative in Pittsburgh
Additional Resources:
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Mind the (Wage) Gap – Season 1, Episode 4
The Advice We Get and Give – Season 1, Episode 6
Managing Parental Leave (Yours or Someone Else’s) – Season 2, Episode 2
Let’s Talk About Money – Season 4, Episode 1
How to Make Part Time Work for You – Season 4, Episode 6
White Papers by Zoe B. Cullen at Harvard Business School