Answering the Number One Question from IT Professionals About Getting a Raise

Everyone wants to maximize their earnings potential, especially as a professional in the IT industry – one of the hottest employment segments of the economy. So much has been written lately on “the war for talent” and how strong the market is for tech professionals, making it natural to wonder if you’re earning your own market value.

One of the most common questions I receive is “Am I going to have to quit my job and go to work for another company in order to get the raise I deserve?”  

This question typically comes from employees who work for organizations that provide modest annual increases, which many times cover a cost of living increase and not much more. Many organizations do their homework to understand compensation and market trends and adjust accordingly to maintain competitive compensation levels in order to retain their key employees. 

However, there are other organizations that are limited by constraining corporate guidelines and don’t allow much flexibility when it comes to salary increases. This could put them at risk for losing the employees they can’t afford to lose. Employees at these organizations come to the conclusion that if they can’t get their full market value at their current company, becoming a free agent will lead them to a role at higher compensation levels.

With that said, those employees miss that their value is typically higher at their current employer for the following reasons:

• Knowledge and understanding of the company’s objectives.
• Familiarity with the business model.
• Inherent credibility from the work you have done over a period of time.

Because of this, they can get things done more effectively and efficiently. a professional that makes the leap to a new role is unproven at a new organization and the higher salary they have negotiated could certainly make them the center of attention as employers look for a quick return on their investment.

That said, here is my advice to you:

• Always do your homework. Do research to ensure you have a good set of data, which unquestionably demonstrates that your compensation is below market value. Your research should not be limited to finding one article with a single instance of a candidate with a substantially larger salary. Instead, conduct your research by looking at multiple sources that are reputable and credible.

• Use your research to have an open two-way discussion with your current employer. Always give your current employer a chance to address your concerns before you throw yourself out into the marketplace. There may be options that can address, from an increase in base salary to a performance bonus or a profit sharing/stock program. If they cannot address your concerns, you have at least made them aware and attempted to work out an equitable solution. You have also put them on alert that this has your attention and could lead you to entertaining other offers that may be more in-line with market-based compensation rates.

• The grass isn’t always greener. This philosophy is alive and well when it comes to looking for new career opportunities. That great salary increase can quickly lose its luster if you’re frustrated with your new manager, find yourself battling unanticipated office politics, or discover you’re working for an organization that does not reflect your values or isn’t a cultural fit.

All these things should be taken into full consideration as you evaluate the value of a new role and the tradeoffs that might come with it. 

While there is no right or wrong answer, I have guided many clients through these decisions over the years. I welcome your comments or insights on this topic.