How to discuss a raise in this market?
I'm an Asset Management associate at a small entrepreneurial REPE firm. I have 1 year under my belt at this shop and 2 years' experience in CRE (was in another industry prior, I'm 27).
A little bit about my situation: I currently make $100K total annual comp and live/work in a MCOL city. Hours are great at 40-45 hours/week, 55 when budget season arrives. AM team is small and I basically split and manage the portfolio with my MD 50/50. Overall I'm content with my position - not my dream job or firm and not sure how long I'll stay (planning at least another year) but grateful to be here. I do good work and am reliable, but so is pretty much everyone else in the company so I don't stand out (no one does). I'm not easily replaceable, but at the same time, the firm would do fine without me. I work hard but not long. I value and definitely take advantage of the WLB I'm given. That said, I could work longer hours and contribute more than just what I'm directly responsible for (ex. I want to eventually help and participate in their acquisitions, so I could be out looking for deals, underwriting them on my own time, then presenting to the CEO, but I don't).
I just want to know if I'm in a position to ask for a raise. I was thinking about asking for $120K total comp. Given my role, the work that I do, the comp I'm currently at, the state of the market, etc. etc., am I in a position to ask for a raise, let alone a 20% raise? What do you think I should do? Keep my head down and just keep working (maybe wait until they offer me a promotion/raise), or should I ask and see what I get?
bump
Not sure anyone can know your specific situation better than you. Your call, but I'd start with possibly assessing what your colleagues are earning and other similar positions in your market. There is some economic uncertainty now so firms may be reluctant to hear you out on this one. Sounds like pretty typical compensation given your experience and position to me though.
I would also take a step back and try to objectively reread your post. It seems like you are doing too fair of a job of assessing your situation and if I were your manager I might be using your exact points as the reasons why you don't deserve a 20% raise (unless your comp is truly 20% below market).
By all means, you should have the discussion with your manager, but I would make sure that I had more solid arguments lined up regarding what you bring to the firm and why you are worth a 20% raise in this market. At the end of the day, you should not be afraid to discuss compensation with management. Even if they can't give you the 20% you are looking for, it's a great way to find out where you stand and perhaps what they would like to see you improve on to get to that next level within the organization.
Yeah I have to agree here - you want to get more involved but you're currently sidelining yourself. If you're not adding value that justifies a 20% increase, it'll be a hard sell. If you have an interest in the buy side but you're not even asking to get worked into the process, do you expect them to just know you want to be a bigger player?
I tell my employees that they need to find a way to do what they want to do, and if they can do it at my firm and it adds value, i'll happily compensate them for it. If its something you want to get into and it'll add value, and you want to be comp'd for that value - thats a different tone than pay me X and I'll go do Y.
I mean, I'm not sure why you think you deserve a 20% raise if, but your own acknowledgement, you don't actually do much more than what is expected. Seems a little backwards for you to say "pay me more and then I'll do all the other things above and beyond my brief."
That being said, I think it's perfectly reasonable to ask for cost of living adjustments, which has got to be in the ballpark of 5-10% in basically any mid or major market this past year.
Stand next to him at the urinals and ask him there and then. Catch him off guard, look him in the eyes and calmly state your demands. Make him feel like the Beta and let him know you're the Alpha.
You'll have your raise before he's even finished washing his hands.
(Shake his hand before he washes for the ultimate power play)
Best way to ask for a raise is with another job offer at higher pay in hand
I don't fully agree with this. First, if your current employer says no, you need to be prepared to accept that other offer. If your current employer says yes and gives you the raise, a move like this may change their perception of you (you have one foot out the door, aren't worth investing in long-term). Statistically, people who do this don't stick around for very long after they get the raise.
I think better to make your first ask with a well-reasoned case for why you are worth more (specific comp data points for similar roles, additional responsibilities you've taken on that make your contributions more valuable). Also, this market sucks, don't make the ask if you can't support it. If that doesn't work, you can take the more aggressive approach by going out to get another offer. When was your most recent review/comp discussion?
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