How to Leverage Offer at Competitor Fund to Get a Raise (MMPE)
Hello, incoming 2nd year analyst at MM PE fund in Europe. My firm base salary is below market and I got head hunted for a similar position at another fund that directly compete with mine. The process moved really fast and they're offering me a job.
No one knows that I went through a recruitment process at my current firm and I don't know who to talk to/how to approach that I would like a raise ( I want to stay at my current fund but other fund pays more).
I think it's too soon for me to move and I'm happy with everything at work, except that I know that my salary is below market (by quite a lot).
- How can I tell my manager that I went through multiple rounds of interview with direct competitor while working from home and that I want a raise? It's very important for me to keep a good relationship with him, he always treated me great.
- How to tell the other firm that I won't take the offer without making them feel that I wasted their time?
Many thanks for the help!
UP
Is the competing firm you received an offer from larger? You're so early in your career that I'm worried you're going to run into this issue again soon. Most firms have no idea what to pay at the analyst level and it could just be naivety, so I would try to find out what the associates / VPs are getting paid. If there's still a large gap to market, I would honestly consider taking the offer with the other firm.
What level is your manager? If you have a good relationship and they are senior enough make comp decisions, I think you're ok bringing up that you received another offer but be prepared to leave. They'll either bring up your pay, incentive you with "it gets better as you move up", or say "sorry that's just what we pay junior roles". If you're fine with the answer and still want to stay, great. But your career is a long journey, and you don't want to start on the wrong foot by being drastically underpaid early on. I can guarantee you the older managers at your firm understand that, but if they don't then it's probably not the best place to build your career anyways.
Thanks a lot for your reply.
Competiting firm is about the same AuM (maybe 1-2bn lower) but different location.
My manager is basically head of investment team and partner, he's in charge of allocating bonuses/salaries and not HR.
I would prefer to stay in the current firm even if they are willing to fill only part of the salary gap as changing location/companies is a pain in the a**.
Do you think the best way would be to set up a meeting with my manager and straight up tell him what's up? How to make sure he's not upset that I went through multiple rounds of interview during working hours? Have you ever been in this type of situation?
Assuming the relationship is decent, I would bring it up to him directly - strike the opening by saying something along the lines of the experience has been great and you want to continue to develop...then bring in the pay raise as a step in that process.
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