I Need a Raise

Happy Friday,

One of your rock-solid consultants taps on your door frame. “You have a sec?” They enter and close the door. Not a good sign…

“I need to talk to you about getting a ($10/hour) raise,” and goes on to explain why.

Your first thought is to explain and defend the salary formula, but how does that usually work out?

Every situation is different, but this might be a better way to handle it:

YOU: “You’re really valued and appreciated by everyone here, and I want you to feel good about what you make. So here’s the deal. Most consultants think the company is always trying to pay them as little as possible. Actually, the opposite is true. The higher your salary, the higher your billing rate. The higher your billing rate, the more revenue you generate and the greater the profit. Assuming most of your time still gets sold. So the company hopes to pay you more, not less.

Our billing rate multiplier is 3X salary. You get paid $50/hour now, so your billing rate is $150. At $150, you've been able to get billable work consistently. How do you feel about your rate going up to $180? Will you be able to get as much work?

Here's the risk: If PMs and clients resist including you on their projects at $180/hour, we’d both lose, but you’d lose more. You know what I mean?"

Silence while processing the implications of this new paradigm in real-time.

YOU: "Maybe your current rate is a bit conservative, but we tend to err slightly on the safe side rather than push the limits when people's livelihoods are at stake. It's up to you. You want to think about it and get back to me?”

HE/HER: “No, no…no, let’s go ahead. I’ll make it work.”

YOU: “Ok, you sure?

HE/HER: Yeah, I'm sure, yeah...

YOU: "Okay, done.”

Their risk, their choice.

I’ve had this conversation a half-dozen times and was justly concerned about all of them. But all made it work because they realized getting a raise isn't just talking 'the company' into it. Most importantly, they need to convince the ultimate buyers of their time.

And how do you do that? Build trust through character and competence. Show you care. Always over-deliver. Re-read the recent GNF's about building trust.

That's it. Have a reeeeeally great weekend!

Dave

Feedback and blowback are always welcome here: dave@goodnewsfriday.com

Access the 54 past topics @ goodnewsfriday.com

Written by me, not ChatGPT: speed assist and blunder avoidance by Grammarly.