Want to increase your executive compensation? Arm yourself with facts and confidence.
For many, salaries haven’t kept up with inflation. The economy continues to recover, but employers are still judicious with their executive salary increases. When you are ready to ask for one, be sure you’re in a position of power. You can do this by leveraging your accomplishments, personal and professional network, industry expertise and knowledge, and anything else that will define your value. Having a firm grasp on all of this will help you negotiate.
Region: This has a lot to do with compensation. The highest salaries are coastal. You can easily do a little research with salary.com or similar sites to confirm this. Then ask: Am I in the best region of the country to negotiate my worth in my industry performing my function. Would I be willing to move to a new area? What would my personal life look like if I moved? If you’re in a prime region for your industry, you have a much better chance to leverage your request.
Industry: Check out the Bureau of Labor Statistics to help find data and workplace trends to make your case stronger. What does the unemployment rate look like in your industry? If it is low, the law of supply vs demand comes into play for you as there is a smaller pool to choose from. Are you in an industry where the demand is strong looking ahead 2 – 5 years from now? Is the popularity of your industry going to be just as strong or better than what it is now? If your industry is thriving, the more leverage you will have.
Network: It’s not only important to have lots connections and relationships. But how well do they “know” you and how much of an “advocate” would they be if your manager were to contact them? If they are able to confirm your skill set and describe on your behalf just how desirable you are in your industry, that will help you negotiate. Social media can help you with quickly and on a large scale.
Position of strength: Where does your power lie? People can sense confidence. It’s even easier for people to identify poor communication skills that are easily misinterpreted as weakness. How strong are your social and communication skills? If you can state your value to the organization and do so effectively to your manager, this will help you negotiate.
Arm yourself with confidence and facts…good luck!