Discussing a Salary Adjustment with Your Manager. Tips?

Question

I've been working at this startup for 3 years now. In my first year, I asked for a raise and they granted me one, increasing my salary by 16%. (I was underpaid even based on the DoL minimum wage for the position haha). However, since then, my salary has remained the same despite increasing expenses due to inflation. My title has also stayed the same (Senior Engineer).

I know that you miss 100% of the shots you don't take, but I'm unsure about the best approach to discuss a salary adjustment with my manager. How common is it for companies to provide regular raises to keep up with the cost of living? I want to be prepared when broaching this topic.

Any advice from those who have been in similar situations would be greatly appreciated. I don't want to come across as demanding, but I also feel that a salary review is reasonable given my tenure and the economic climate.

littlestich · Accepted Answer

As a founder, I constantly seek funding for operations, sales, marketing, and ensuring competitive salaries for my employees. Before discussing salary with your manager, it’s crucial to assess if the startup is profitable or has secured funding. Demonstrating added value through documentation can enhance your CV for future job searches.

Working at a startup often entails double to triple the effort compared to traditional roles. Consequently, your experience, expertise, and contributions can leverage opportunities for advancement elsewhere

maverick233 · Answer

I feel you re: the economic climate. Unfortunately, the current economic climate is one which makes it tougher to get a compensation increase, and may justify an org either forgoing or minimizing an increase.FWIW adjustments for cost of living are uncommon depending what type of company you're in. You may see them in public sector jobs but you'll usually have more success getting an increase (and larger increases) by basing it on the value you're providing.That said, you should definitely try. Don't use the economic climate or threats of leaving to justify it. Instead, clearly explain why your contributions are having a positive impact on the business and your team. Make sure you quantify that impact.  I.e. I exhibit behaviour A or delivered B which helped my team do C, leading to D.(Where D relates to a metric your company cares about like reducing cost, increasing revenue, improving reliability, making your team more efficient in a specific way.)You can also point to how an adjustment would better reflect the market rate, but this in itself isn't always strong.As a SWE, decisions about raises are rarely if ever your manager's alone. First, make sure they can see and understand the impact you've had and why you believe you're performing at a level deserving of an increase. Get an idea of where they are you at in terms of growth, contribution strength and overall performance. Find alignment on any areas where either of you feel you need to improve to be considered ready for the next step, and set clear, written, measurable goals for closing any gaps. Help your manager build a case for your increase or promotion which describes the ways in which you're providing value beyond your current pay, most importantly including the impact above. The most successful increases I've been able to get for my team members have been based on explicit descriptions of their growth, development, contributions and impact on things my bosses and their bosses care about, supported by evidence. Better yet, when the team member has taken an active role in outlining this. Your manager will appreciate it and be willing to fight for you. Also, keep a list of your accomplishments and achievements over time.

madscience · Answer

A lot of companies will give incremental raises every year for their employees, but a lot of them have also been using "market conditions" as an excuse not to, so I'd say it's not super uncommon not to get a raise within these past couple of years. especially for startups as well, like the other commentor mentioned, if the company isn't profitable yet or hasn't secured funding, then it could be a lot tougher to push for.

Discussing a Salary Adjustment with Your Manager. Tips?

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