Like so many who work in high growth environments, we don’t stop. There is always work to be done, and there are always new goals to tackle. We shun the notion of a boring job and instead pursue a career that stimulates us both financially and emotionally. In many cases, our paycheck is just the icing on the cake if we have found work and a team that we are passionate about.
But money ultimately does matter, right? If it didn’t, we’d be doing volunteer work. In a perfect world, the goal would be to understand what you are worth, have your company in alignment with that assessment, and be paid as such. If you can accomplish that, the notion of compensation should fall to the bottom of your thoughts, so you can focus on delivering high impact work.
But how do you quantify your worth? It’s a little more complicated than just going onto an online payment calculator and inputting your job title. While criteria such as experience, market dynamics, size and funding of company play a role, it’s also about the value your company perceives you are adding. The challenge is, when we are working so hard, sometime our view on our self-value gets a little skewed. We often confuse effort with impact and can inflate our worth in the process. If you are attempting to determine what you are worth in the market, and whether or not your company is in alignment, here’s a strategy to do so.
STOP WORRYING ABOUT WHAT EVERYONE MAKES & FOCUS ON YOUR VALUE
We have all been part of conversations concerning colleagues who we perceive to be marginal at best, and yet they make way more than we do. Sure, sometimes things get out of whack, and sub-par performers can outshine us in the money department, but that dynamic typically doesn’t last for long. No savvy company wants to pay for lackluster performance; they want to invest in their best people.
Start by focusing on your own “compensation marathon,” rather than the race someone else is running. Picture this: everyone leaves the starting line, and quickly different paces set in for each runner. Some people get off to a rocket start; others pace themselves for the long race. Still, others stumble, and pull back, or leave the race altogether. In work, it’s fairly similar. When we enter the workforce, very few of us have any notable skills. We find the best job we can, and we work hard to pay our dues. Like the marathon, some people dig in - hard. They are focused, they learn, grow, develop, and add value. Others realize work is actually “work,” and becomes the means to a lifestyle, rather than having real passion and excitement about what they are doing. Obviously, there are plenty of people in between.
Whether you are a new grad, or well into your career, focus on your own race. Someone will always be in front of you. And there will be plenty of people behind you. It doesn’t matter; if you stop worrying about their place and focus on where YOU stand, you’ll erase the distractions. Instead, focus on ensuring you are pacing yourself well, working towards the opportunities you are after, and seeing the increases in your financial value as part of the acknowledgment that you are adding value.
ASK YOURSELF - AND OTHERS - THE TOUGH QUESTIONS
Do you know where you stand in the eyes of your peers? Your manager? Your customers? Often, we live in blissful ignorance that we are absolutely crushing it because we don’t ask the hard questions. To ask those whose opinions matter, “Hey, give me some feedback on my impact” is an uncomfortable question to ask sometimes. And yet it’s so important to get on the same page. If you are all aligned, amazing. If you aren’t, ask for help in closing that gap. And of course, always be asking yourself (and your boss) “What can I be doing to ensure I’m adding value today?”
Also, rather than going online and looking for a compensation calculator to tell you what you are worth, consult an expert who might actually be able to help you. If your company has a compensation professional, ask them for guidance and insight into market data and where you stand. If your company doesn’t have this person, ask the leader of your team. The goal shouldn’t be “pay me more.” Instead, you should seek to find out first what the market thinks you are worth...and then compare that to what your company thinks you are worth before suggesting you aren’t paid enough.
PUT IT ALL TOGETHER
Financially successful people aren’t fixated on their paycheck. They are consumed with adding value and impact. They realize if they achieve this, the money will follow. I’ve seen so many people part ways with a good company because another group offered them a fatter paycheck, and a perhaps a bigger title to join them. It might seem incredibly flattering at the time, but if it seems too good to be true, it likely is. It might feel good in the short term, but when that new company expects you to deliver to the value of that new, big salary, you are sunk if you aren’t up to the task. If you consider the big picture - supply of demand for people who do what you do, geography, the stability of the company, performance and value-added - and you match that with the market data, hopefully, you’ll find good alignment. If you don’t, it’s time to have a conversation with your manager or people strategist to correct this.
Companies want to pay their best people the best incentives. If you are one of those high-value people, you’re likely being paid as such. If you aren’t, don’t just quit or get angry because your neighbor is making more and you feel wronged. Gather the data, ask the important questions, and make your case. At best, you’ll ultimately end up creating alignment between your compensation expectations and your company’s ability to pay. At worst, they may say no - and you’ll learn why. Whether you chose to agree with that feedback or not, you’ll have answers to help you make strategize your next move. And you will no longer be wondering about where you stand.