Analyst - what’s a reasonable ask for a salary increase
I’m coming up on a year as an analyst at a medium sized firm within a secondary/tertiary market in the Sunbelt. When it comes to the work I do, I really enjoy it and see my self growing with the company. Only complaint I have is the salary feels low - $59,000 with a 10% bonus depending on how the year goes. I didn’t negotiate when I took the job since out of undergrad it took me a bit to find my current spot.
When it comes time for my end of year evaluation, what is a reasonable ask from a pay increase perspective - $65k-$70k (too high or low)? I mentioned how I really like the company and what I do, I don’t want to ask too much and it come off wrong. But at the same time, it would make my cost of living a little less tight with a pay increase.
Based on the most helpful WSO content, your current salary of $59,000 with a 10% bonus aligns with the lower end of analyst compensation in secondary/tertiary markets. A reasonable ask for a salary increase would depend on your performance, the firm's financial health, and market benchmarks.
Market Benchmarks: First-year analysts in lower-cost-of-living (COL) cities typically earn $55k-$60k, with some exceptional cases reaching $70k. For a second-year analyst, $65k-$70k is a reasonable range, especially if your performance has been strong.
Performance Justification: If you've demonstrated value to the firm, such as taking on additional responsibilities, improving processes, or contributing to successful projects, you can confidently ask for a bump to $65k-$70k. Highlight specific achievements during your evaluation.
Negotiation Strategy: Frame your request as a reflection of your contributions and market alignment. For example, "I’ve really enjoyed my role and see myself growing with the company. Based on my contributions and market benchmarks, I’d like to discuss adjusting my salary to $65k-$70k to better reflect my performance and the value I bring to the team."
Timing: Since you're approaching your one-year mark, this is an appropriate time to discuss a raise. However, if the firm has a structured review process, ensure your request aligns with that timeline.
By positioning your ask within the $65k-$70k range and tying it to your performance and market data, you strike a balance between ambition and reasonableness.
Sources: Life in General Will Cost More Than You Think, Reflections from year 4 as an equity analyst, 1st year analyst - how to prepare for 1st year end review this year?, Minimum Time Before Lateralling?, Interview with Simple As...Hedge Fund Analyst
https://www.wallstreetoasis.com/forum/real-estate/comp-database-repostupdate
Check this to get an idea of market, but the ballpark you have seems reasonable to me, I do think you're a touch below market unless you're SUPER tertiary/very LCOL. When you go into the review, have a list of your main accomplishments, KPIs, etc; and know the market salary for your position. As long as you avoid any direct threat to leave (ie "I can't stay for this salary") then the conversation should go smoothly.
Thank you for this!
You’re so below market that I think you should change jobs. Unless you’re in the boonies and don’t care for an early career advancement. You’ll never get paid enough if they comped you that low to begin with
I haven't paid a residential property manager less than $110k-120k in a decade and they're mostly morons only able to function due to their regional managers. I don't think I've paid a head maintenance man under $70k.
My mom is a social worker. One of the most underpaid, "do it for the love of the game," zero respect, it's a calling-type jobs out there. All this woman's life, she has never made her worth. She makes more money than you.
You did the right thing taking a job to build your resume, but you are getting paid 2007 wages. You need to start looking for a new one yesterday.
Hmmm I generally think you’re right but if they are working in Salt Lake City or somewhere like that$59k is more like $80ish in a major metro, which is actually a reasonable entry level salary. I think they should push for more and maybe ask for a 10% raise regardless tho.
Now if this was LA/SF/ or god forbid NY then yes this is poverty wages.
Agreed. to OP, I did a cost of living conversion purely out of curiosity. I just graduated and expect to make ~$200K all in NYC Y1. I don't know where you are based but this is the comparison. Seems like you are very below market
Lol these COL calculators are nonsense. Not an accurate representation of COL equivalency. You’re making no where near $200K NYC level wages.
OP referred to his employer as a 'medium sized firm' in a secondary / tertiary market in the sunbelt. So if he's a first year analyst at a regional investment sales shop in Jacksonville, FL, with $59,000/year + 10% target bonus, I think responses here are a huge overreaction (and he's really not that underpaid).
It's a first job out of college, so they hired him when he could barely wipe his own rear-end, no offense.
The market for entry-level real estate jobs is extremely weak (and if he has/wants to be in Jacksonville or Birmingham or Chattanooga), this is in-line. Now, if he's willing to move to Atlanta, and able to secure an offer, I'm sure it'd be a big premium to his current comp. But that's a big IF. And he enjoys the work / the firm, so presumably this is a position / experience that leads to better things when the market turns.
To OP: don't let responses here disrupt your job satisfaction. You're in a good spot. Obviously ask for the raise, provide evidence of your value and what the market for your services is, but be respectful, and be happy with your role. Many would love to be in your seat.
I actually agree. I make roughly 85k all in 1st year in a HCOL city, which is basically in line with OP when adjusted for COL. Actively looking for new roles, but right now a job is better than nothing.
Agreed I wouldn’t push too hard in this market. It’s not as bad as people are making it out to be so long as you’re getting deal reps and proper experience. Stay to course and you’ll be much more marketable in 1-3 years and then can get brought up to market as an Associate where the increase could be $50-75K+ depending on the shop.
I think you should do some lateral interviews so you have backup plans around or above the 60-70K range. If you’re really in a mid to LCOL area you should be pretty comfortable at that level. Then ask your boss for $72K or something. Make sure you can back it up with good performance and clear value-add to the team. If your boss says no, just take the lateral offer if you got something higher than $59. Honestly think the best move is to leave if your boss says no. It’s hard to move forward from there.
“Can I get a raise?”
“No”
continues working for the guy for two years
Personally that dynamic wouldn’t sit right with me
I would put it in a COL calculator and adjust it based on ATL/Charlotte (MCOL type cities). I think both cities underpay a bit but have a good real estate scene so you atleast have a few datapoint to go off.
I would also ask for bump to a min of 75k and pull data for jobs that list salaries. Many places such as California/Denver/NY etc have salary disclosure laws so should be a bit easier.
You’re just a first year, so the only way to get a really good bump is to go to a competitor.
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