Everyone wants a pay raise, but few of us know how to ask for one. I’ve designed pay policies at some of the world’s best-known companies, and I can tell you what you need to know before having that pay conversation.
All companies large enough to have an HR department use some version of these guides. Find the description and label that best fits your job. For example, the manager level may be described as “manages professional-level individual contributors” and labeled an “M3,” while the senior manager level “manages other managers,” and is labeled an “M4.” Your company likely assigns a custom “grade” to this labeling system.
Depersonalize pay. When you ask for a raise, you trigger a host of administrative alarms, and often your manager has no unilateral authority to sign off on all the budgets, forms and approvals. You need a simple, data-driven story about why your pay should be increased that helps your manager advocate on your behalf. The best stories focus on internal processes that show how your company’s own practices are leaving your pay behind.
If your company doesn’t share any information about your pay range, you have a hard path ahead. Know that the data you collect from colleagues in similar job levels or through online searches will never be as rigorous as the data your compensation team has access to and that it is often wildly off base. Using several sources and closely tying your searches back to a job leveling guide is your best option.
If you do choose to leave for a minor pay increase, you will be wished well, but it will be understood that there was something else broken with your employment experience that pay alone couldn’t fix. If you’re in this group, ask about the career path into management to show you want to grow with the company. Internal promotion rates are the best indicator of potential pay growth; if you find that most of your managers were hired externally, consider this a sign to start looking elsewhere.
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