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THE QUESTION
During my annual review, I asked for a raise, based on my performance and some research I did on pay for comparable jobs. I was denied. I still enjoy my job and don’t want to move companies. I just want to be paid what I deserve. I’ve heard other people had success with presenting competing job offers to get raises at their original companies. Does this actually work? Should I try this strategy and interview with other companies, even if I don’t want a new job?
THE FIRST ANSWER
Laura M. Muir, chief human resources officer, Polaris Transportation Group, Mississauga
It is unfortunate that you feel frustrated with your current compensation, however, pay is a complex item for many organizations. There are several factors at play: the size of the organization, compensation structure and so forth. I don’t know what research you did, but if it didn’t consider all the factors, you may be comparing apples to oranges. For example, jobs as customer service representatives at different companies may have various skill requirements and job duties, and this might explain differences in compensation.
From my experience, it is a poor strategy to vie for another job only to gamble for a raise and will likely cause mistrust between you and your leader because this approach could be seen as hostile and may, in fact, backfire. You may end up at a new job that is not as fulfilling as your current position.
I recommend that you “manage up” and schedule a meeting with your manager. Ask them if there is a limit on the pay for your role. In other words, be transparent. If there is an opportunity, then they should prepare a trajectory that includes additional training and job shadowing to justify the increase.
If your compensation cannot be changed, your trajectory should be an open discussion about other positions you may be interested in at the company. Both discussions may require HR involvement.
I have seen great success with the retention and engagement of staff when trajectories are created and regular check-ins are completed. I sincerely wish you the best and remember that no organization is intentionally looking to part with a dedicated employee.
THE SECOND ANSWER
Jillian Climie, co-founder, The Thoughtful Co., Victoria
Using a competing offer to get a raise is nuanced. In very specific situations this can work. However, a lot of the time, leaders get defensive. It feels personal since you’re interviewing with other companies behind their backs.
To avoid this, first approach your leader for a candid conversation. Try this:
- Start with positivity. For example: “I love working here and can see myself growing with this team over the long term. Because of that, I want to be transparent about how I’m feeling about my pay.”
- Next, articulate two to three concise points that demonstrate your value to the company, referencing metrics that are important to your leader. For example: “I excel at creating efficiencies and driving sales. In the past year, I’ve implemented a new process that saves our team three hours a week. Additionally, I’ve increased sales from our biggest client by 15 per cent.”
- Lastly, follow up with a clear and concise ask. “Based on these things, I’m asking for X.”
If it’s still a “no,” make sure you understand why. Are there budget constraints? Budgets don’t last forever, so put in place a plan to reconnect before the next budget cycle. Is your performance not where it needs to be? Discuss what you can work on to get there. Are other elements of your compensation negotiable instead? Bonus, equity and benefits can have a significant financial impact.
Using external job offers is something to leverage as a last effort, especially given the extensive time required for recruiting, interviewing and securing an offer. By that point, do you still even want your current job?
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