4 answers
Scott
Student
Asbury Park, New Jersey
4
Questions
Updated
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how do I leverage a job offer from a competing company to negotiate a salary raise at my current company?
I have worked at the same job for 10 years and they do not pay enough and offer minuscule raises. I would prefer to stay at my current company in order to avoid transitioning to a new company and a longer commute. How can I use this job offer to have a constructive conversation with my boss?
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4 answers
Joseph Burley
Enterprise Account Manager
3
Answers
Seattle, Washington
Updated
Joseph’s Answer
I like the answers already given but I wanted to add two things.
One, you should know/ask for the salary range for your job code. “What’s the salary range for my job code according to HR?”
Two, don’t come out and state the exact dollar amount of the competing offer. Just say “more” or “an attractive amount more.” If the offer is lower than the highest your employer was willing to pay you, they now know they don’t have to go that high to compete. So you’d be undercutting yourself right out of the gate. You never know, they may end up offering you more than the competing offer did. But that won’t happen if they know that number. If they ask specifically for it, you don’t have to give them the number either. You can deflect to your own “enough to make me need a significant raise to stay.” Make then give you a range/number first and negotiate from there. “How much of a raise can you give me?” And then make the case for being at the highest end of that range.
Obviously don’t be TOO much of a stickler over the offer amount. If they say HR needs evidence of a higher offer to increase your salary anymore or something like that then obviously provide it.
Just remember in the moment, you’re worth it and you deserve it!
One, you should know/ask for the salary range for your job code. “What’s the salary range for my job code according to HR?”
Two, don’t come out and state the exact dollar amount of the competing offer. Just say “more” or “an attractive amount more.” If the offer is lower than the highest your employer was willing to pay you, they now know they don’t have to go that high to compete. So you’d be undercutting yourself right out of the gate. You never know, they may end up offering you more than the competing offer did. But that won’t happen if they know that number. If they ask specifically for it, you don’t have to give them the number either. You can deflect to your own “enough to make me need a significant raise to stay.” Make then give you a range/number first and negotiate from there. “How much of a raise can you give me?” And then make the case for being at the highest end of that range.
Obviously don’t be TOO much of a stickler over the offer amount. If they say HR needs evidence of a higher offer to increase your salary anymore or something like that then obviously provide it.
Just remember in the moment, you’re worth it and you deserve it!
Clint Nagel
Counselor
33
Answers
Cincinnati, Ohio
Updated
Clint’s Answer
I am perhaps not the best example or representative for answering this, BUT it is a question that opens up conversation about something I frequently process through. Remove as much emotional attachment and the comfort level of staying put for less than your value, and approach it with a strong understanding of your value currently in the marketplace as well the opportunities that may arise if you move on. Additionally, what opportunities are present if you stay?
Lastly; having a $$$ number to represent your current value as well as other perks/benefits supplies strong supporting evidence for who you are and your value. The new position offers no guarantee for longevity and I would then insert some emotion and positive memories to work towards receiving a strong counter offer.
These are my thoughts from a former Guidance Counselor and a professional in Business Development with an MBA.
Thanks!
Clint
Lastly; having a $$$ number to represent your current value as well as other perks/benefits supplies strong supporting evidence for who you are and your value. The new position offers no guarantee for longevity and I would then insert some emotion and positive memories to work towards receiving a strong counter offer.
These are my thoughts from a former Guidance Counselor and a professional in Business Development with an MBA.
Thanks!
Clint
Fred Rosenberger
Data Analyst
392
Answers
St. Louis, MO
Updated
Fred’s Answer
This is not an easy question, or an easy thing to do. There is no way to guarantee any particular outcome.
You have to be sure you are OK with whatever consequences happen. If you effectively say "give me a raise or I will leave for this other job" - no matter how kindly or carefully you phrase it - you have to be prepared for them to say "go ahead and leave". Then you have to decide if you actually will leave, or are willing to stay and have that empty threat attached to you.
Consider how valuable your current company thinks you are. Be honest. How easy would it be to replace you if you left? I don't know what your company is, where you work, or what the market is like there, but all these need to be considered.
If you have a contract with your current employer, did you sign a non-compete contract? Are you even allowed to go to a competitor?
I think the best you can do is approach your boss, and say something like "look, I have this other offer for X dollars more than what I make here. I really like it here, and want to stay, but I feel I'm worth more than your paying me". Have a list of accomplishments you've achieved there to back up your claim, on how you are actually worth more than your peers. With ten years of experience, you should have a decent list. This part, I feel, is more important that the other job offer.
Also, see if there are more senior positions you could apply for. Large companies often like to promote from within. Your institutional knowledge really is worth something. Can you apply for a lead position in your group?
Think hard about what you really want, and what you are willing to accept. If the increase in salary at the new job is not worth the commute time/hassle, maybe you are being paid the right amount. Remember to consider the FULL benefits package - vacation, holidays, perks, the work environment, etc. It's not just about the base salary.
You have to be sure you are OK with whatever consequences happen. If you effectively say "give me a raise or I will leave for this other job" - no matter how kindly or carefully you phrase it - you have to be prepared for them to say "go ahead and leave". Then you have to decide if you actually will leave, or are willing to stay and have that empty threat attached to you.
Consider how valuable your current company thinks you are. Be honest. How easy would it be to replace you if you left? I don't know what your company is, where you work, or what the market is like there, but all these need to be considered.
If you have a contract with your current employer, did you sign a non-compete contract? Are you even allowed to go to a competitor?
I think the best you can do is approach your boss, and say something like "look, I have this other offer for X dollars more than what I make here. I really like it here, and want to stay, but I feel I'm worth more than your paying me". Have a list of accomplishments you've achieved there to back up your claim, on how you are actually worth more than your peers. With ten years of experience, you should have a decent list. This part, I feel, is more important that the other job offer.
Also, see if there are more senior positions you could apply for. Large companies often like to promote from within. Your institutional knowledge really is worth something. Can you apply for a lead position in your group?
Think hard about what you really want, and what you are willing to accept. If the increase in salary at the new job is not worth the commute time/hassle, maybe you are being paid the right amount. Remember to consider the FULL benefits package - vacation, holidays, perks, the work environment, etc. It's not just about the base salary.
John Morris
Instructional Designer / Musician / eLearning Creator
27
Answers
Updated
John’s Answer
This is not an uncommon situation. Companies know that employees resigning and starting at another company is difficult and stressful. Because they know that, they know that they can give smaller raises to existing employees and larger ones to new employees coming from outside.
If you don't already have a job offer from another company, my advice would be to keep looking and to negotiate only after you have a job offer. You should not expect to negotiate only on the threat of leaving.
Do you already have an offer? This is what may happen when you tell your manager:
They might say: "Ok, good bye!" Be ready for that, it could happen. But you have an offer.
They might say: "Wow, we really don't want to lose you, what can we do to make you stay?" Tell them honestly what you want.
They might say: "Let me talk to HR and see what we can do." Wait patiently and see what they offer. But remember, if they delay too long, the other company may get impatient and rescind their offer.
You should be ready to go, if your current employer does not counter offer, delays, or appears to be treating you as if you are being disloyal, you should move on to the new job.
Changing jobs, especially after being in one for 10 years is difficult. But it can also be a great way to branch out, learn new skills, and meet new people.
If you don't already have a job offer from another company, my advice would be to keep looking and to negotiate only after you have a job offer. You should not expect to negotiate only on the threat of leaving.
Do you already have an offer? This is what may happen when you tell your manager:
They might say: "Ok, good bye!" Be ready for that, it could happen. But you have an offer.
They might say: "Wow, we really don't want to lose you, what can we do to make you stay?" Tell them honestly what you want.
They might say: "Let me talk to HR and see what we can do." Wait patiently and see what they offer. But remember, if they delay too long, the other company may get impatient and rescind their offer.
You should be ready to go, if your current employer does not counter offer, delays, or appears to be treating you as if you are being disloyal, you should move on to the new job.
Changing jobs, especially after being in one for 10 years is difficult. But it can also be a great way to branch out, learn new skills, and meet new people.