feeling massively underpaid for my level of experience (Director level, 8 YOE doing development deals as a development professional)
- received 2 offers for what I would call “market” comp (significantly higher total package than my current situation) at 2 separate established, reputable developers.
I want to stay at current firm but it kills me to turn down multiple offers for significantly more $$.
What is the best way to approach this with current employer? Without eroding trust (the fact that I have outside offers), without it seeming like I’m demanding anything (walking a fine line between demanding and asking), and keeping an overall positive healthy relationship, given I want to stay.
To navigate this delicate situation effectively, here’s a strategy based on the most helpful WSO content:
Frame the Conversation Positively: Start by expressing your commitment to the company and your appreciation for the opportunities you’ve had. Highlight your desire to continue contributing to the firm’s success.
Present Your Value: Emphasize your contributions and the value you bring to the firm. For example, mention specific achievements, the deals you’ve closed, or the impact you’ve had on the company’s growth. This reinforces why you’re worth a competitive compensation package.
Avoid Directly Mentioning Offers: Instead of explicitly stating you have outside offers, you can frame it as having done market research. For instance, say something like, “I’ve been reflecting on my role and the market for professionals at my level, and I’ve noticed that compensation trends for similar positions are significantly higher.”
Propose a Collaborative Solution: Position the conversation as a partnership. For example, “I’d love to explore ways we can align my compensation with the market while continuing to grow and contribute here.”
Be Flexible in Compensation Structure: If the firm cannot match the full market comp immediately, suggest alternatives like performance-based bonuses, equity, or other benefits. This shows you’re open to creative solutions.
Maintain a Positive Tone: Avoid ultimatums or making it seem like you’re threatening to leave. Instead, focus on your enthusiasm for staying and growing with the company.
Prepare for Pushback: If they resist or say no initially, don’t get discouraged. As WSO threads suggest, a “no” today doesn’t mean “no” forever. Keep the conversation open and revisit it later if needed.
By approaching the discussion with professionalism, tact, and a focus on mutual benefit, you can advocate for a fairer compensation package while preserving trust and a positive relationship with your employer.
Sources: https://www.wallstreetoasis.com/forum/job-search/negotiating-offer-before-during-and-after-interview-follow-up?customgpt=1, Feeling Undervalued? Do This, Negotiate Anything
Start by asking your manager for a dedicated meeting to discuss compensation and your long term growth at the firm. You don't want to blindside them with the conversation--they may get defensive vs. planning a time to talk about it intentionally.
Finally, recognize that the market for employees sucks right now in the development space. A lot of firms are laying off folks, and equity is largely frozen in the market for new development deals. At tons of companies, development guys are being asked to maintain their current responsibilities and do additional asset management work. There are a lot of solid development guys circulating looking for jobs, so you want to keep the convo encouraging and positive.
Great post. Nothing to add here other than to tell the OP the right call may be just taking one of those two offers. It’s not impossible to get a current employer to match, but it’s a much harder road.
Thank you, this is extremely helpful. Thanks for the detailed post. Honestly plan to use this as a guide. Also I agree about the amount of talent relative to demand in the current market. One reason I’m hesitant to jump and also very careful about how to approach this internal convo.
Significantly higher comp in a brutal market like this?
You need to take one of the 2 offers - employers think they can “hire cheap” right now…I doubt they are going to match
Best you can do is leave in a good way and keep the door open to return (but if they’re screwing you so bad on comp…even a promo won’t get close to an external offer)
What’s the difference in dollars between the two offers?
I’m surprised you were able to land to jobs with significantly higher packages in this market - is this on salary and bonus or just a boost in bonus/carry?
Ask for a raise - if they tell you no are you ready to jump ship?
I’d really think hard about the solvency of the other too shops vs. your current shop. To me staying in the game is most important right now. Id venture to say no matter where you are dev guys are gonna make peanuts the next few years.
Delta between current role and the new offers is about $70k all-in (offers are similar, which gives credence to feeling underpaid compared to market). Currently only making $140k base plus a small incentive each time my team closes a construction loan. New roles would be about $230k all-in. $180k-$200k base plus bonus. Feel like I’m getting screwed for having 8 years dev experience and currently managing small team. Keep in mind I’m in LCOL city, but offers are still attractive relative to current situation.
How’s this turn out for you?
One is smaller / entrepreneurial and the other is a massive REIT with lots of free cash flow every year and a huge balance sheet. Leaning away from smaller one due to questions about their access to capital. The REIT is pretty interesting though. That said, current shop is well capitalized and doing lots of suburban MF deals at the moment. Reason for leaving would be pay and not feeling appreciated. But honestly, have jumped a few times in my career and would like to just stay. Hard to turn down offers for more pay though, at least when it’s that big of a gap.
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