Welcome back to ‘Do You Have A Minute?’ If you’re new here or want more context about who I am, my philosophy, and what this is all about, check out the first edition.

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'I saw a job similar to mine posted with a compensation range that's higher than what I currently make. What should I do?'

If you have one takeaway from this today’s newsletter, let it be this: comp ranges are not created equally.

Compensation is both an art and a science. There are professionals who spend their entire careers helping companies craft comp strategies that reflect factors like target market percentile, regional differences, industry-specific nuances, etc. There is A LOT that goes into building a comp range.

That said, not every company utilizes a compensation expert. Some build and post arbitrary ranges, some post ranges that are nonsense and span from $25k to $500k, and some just don’t post a range at all - which, ahem, can be against the law including for many remote positions.

So, before you spiral about being underpaid, it’s important to have perspective about the range(s) that you’re looking at. Yes, you may be deserving of a raise, but you also may be fairly compensated based on your employer’s comp strategy.

With that caveat in mind, here’s how I recommend approaching these types of conversations:

1. Do Your Research: Is the higher range that you’re looking at for one job posting, or are you seeing higher ranges across several companies? Do the positions have any material differences from yours which may warrant higher compensation? Are the company stages different which may warrant a compensation strategy targeting a higher percentile in the market or a different breakdown between salary and other types of compensation like bonus, equity, and benefits? You don’t need to know the answers to all of these questions, but it’s smart to be informed before you broach a conversation with your manager.

2. Craft Your Story: Besides the external data that you’re seeing, why do you deserve more money? What’s your impact on the business or team? If you don’t have this, then your ask falls flat. And frankly, if you’re underperforming, then your comp is the last thing we should be talking about.

3. Approach Your Manager: Be practical, honest, and humble. Discuss your achievements and observations from the market - and share the impact that it has had on you. “I’ve recently seen higher compensation ranges in the market for jobs similar to mine and it’s been a bit demotivating. Over the past two years, I’ve contributed XYZ to ABC company and I really want to continue to make an impact here. Can we talk about my compensation because I’m looking to get to a salary of $XX within the next few months?”

While some may not agree with me, I think it’s important to have an ask when you approach your manager. It clearly lays out your expectations. That said, please be reasonable. If it’s a material jump from where you are (think 15% or more), consider reframing your conversation to be about why there is such a large discrepancy between the market and your comp. Be inquisitive, not accusatory, because the reality is that many managers actually don’t have control over their employees’ comp. They get a small budget to allocate once a year or sometimes their manager (or manager’s manager) makes the decisions and they are simply the messenger.

Managers - If someone on your team approaches you about their comp, be supportive and engaged; this is a highly emotional topic for people. You don’t need to have the answers in your first meeting. Hear them out and tell them you will speak with your manager and/or HR and circle back. Use that time to prepare any feedback you have and/or to advocate for them. When you follow up with them - which is an absolute must, you need to close the loop - be clear about the rationale for their current comp plus the timeline, process, and any requirements for a bump in the future.

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What I’ll Answer Next Time:

I interviewed for a role and haven’t heard back. When should I follow up?

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Disclaimer: This newsletter is purely opinion-based and nothing included should be interpreted or construed as legal or professional advice. If you want professional advice, I’d love to work with you. Please reach out.