1) Chads post is full of excellent advice! Especially the part about treating the negotiation like a business agreement.
2) There are some super useful things to keep in mind when it comes to talking business with your boss.
First: Be aware of information assymetry. Information asymmetry is when you and the other side of the negotiation table have different bits of information that are relevant to the agreement you are trying to make. Information asymmetry, in my experience, leads to resentment on either side. For instance, you may think that work X or Y that you're doing is more valuable to the business than the business thinks it is. Or perhaps your understanding of what level you are performing at is misaligned with your bosses. Even more likely, your boss may have visibility into what other people working at your level within the organization are earning and you, unfortunately, may not.
Second: Take the time to find out if there is anything in writing that details what you should be doing to move your formal title or level up within your organization and what kind of compensation you should expect at that level. If your boss doesn't have that written down, it's likely because they are overworked and the organization hasn't prioritized that part of the responsibilities of management. In that case, fall back on whisper networks. If you have someone in the org that you feel you have vaguely the same level of skills and abilities and experience; you can ask them what they earn. Legally, your company cannot retaliate for discussing wages. Illegally, however, they may do so; so weigh how much you trust your organization isn't actively attempting to suppress wages.
Third: Your boss is measured on their performance using particular metrics or goals. Know what those are before beginning any compensation conversation. Spend your time talking about how you've helped them achieve the goals that are important to them — everyone values someone who is the wind beneath their wings.
Fourth: Leverage! The best deals are where everyone gets something they want or need without giving up too much of something they value. Is there anything you can offer that your boss wants that isn't a huge cost for you? Try to navigate the conversation toward those opportunities where possible. Paint a picture for them of a better life. Then stick the landing — ask them for what you want. "If I were to take that on I think I'd need to see an increase in my role and compensation; as it increases my responsibilities significantly." Hopefully, this framing shifts your boss from the role of "Gatekeeper of the finance and ops" to "buyer of risen value."
Fifth: Avoid putting them on the defensive. Yes, you can threaten to find another job. Hell, it may be what's necessary to get the organization to move if you feel undervalued. But really, a defensive negotiator is not going to be as willing to give up the things you need. Being grumpy and unhappy is a natural result of feeling under-valued. Try to compartmentalize it; not because it's an invalid feeling; but because unless you're already incredibly highly valued by the organization, it's not going to shift them towards you getting what you want.
Negotiations are hard and fraught with stress. The fact that you're asking about how to approach it is a substantial first step on the path to advancing your career. Good luck!
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Hopping in to say:
1) Chads post is full of excellent advice! Especially the part about treating the negotiation like a business agreement.
2) There are some super useful things to keep in mind when it comes to talking business with your boss.
First: Be aware of information assymetry. Information asymmetry is when you and the other side of the negotiation table have different bits of information that are relevant to the agreement you are trying to make. Information asymmetry, in my experience, leads to resentment on either side. For instance, you may think that work X or Y that you're doing is more valuable to the business than the business thinks it is. Or perhaps your understanding of what level you are performing at is misaligned with your bosses. Even more likely, your boss may have visibility into what other people working at your level within the organization are earning and you, unfortunately, may not.
Second: Take the time to find out if there is anything in writing that details what you should be doing to move your formal title or level up within your organization and what kind of compensation you should expect at that level. If your boss doesn't have that written down, it's likely because they are overworked and the organization hasn't prioritized that part of the responsibilities of management. In that case, fall back on whisper networks. If you have someone in the org that you feel you have vaguely the same level of skills and abilities and experience; you can ask them what they earn. Legally, your company cannot retaliate for discussing wages. Illegally, however, they may do so; so weigh how much you trust your organization isn't actively attempting to suppress wages.
Third: Your boss is measured on their performance using particular metrics or goals. Know what those are before beginning any compensation conversation. Spend your time talking about how you've helped them achieve the goals that are important to them — everyone values someone who is the wind beneath their wings.
Fourth: Leverage! The best deals are where everyone gets something they want or need without giving up too much of something they value. Is there anything you can offer that your boss wants that isn't a huge cost for you? Try to navigate the conversation toward those opportunities where possible. Paint a picture for them of a better life. Then stick the landing — ask them for what you want. "If I were to take that on I think I'd need to see an increase in my role and compensation; as it increases my responsibilities significantly." Hopefully, this framing shifts your boss from the role of "Gatekeeper of the finance and ops" to "buyer of risen value."
Fifth: Avoid putting them on the defensive. Yes, you can threaten to find another job. Hell, it may be what's necessary to get the organization to move if you feel undervalued. But really, a defensive negotiator is not going to be as willing to give up the things you need. Being grumpy and unhappy is a natural result of feeling under-valued. Try to compartmentalize it; not because it's an invalid feeling; but because unless you're already incredibly highly valued by the organization, it's not going to shift them towards you getting what you want.
Negotiations are hard and fraught with stress. The fact that you're asking about how to approach it is a substantial first step on the path to advancing your career. Good luck!