Now that millions of employees have enjoyed the ability to work remotely and shape their schedules, workers are increasingly reticent to give up flexibility – and would consider making sacrifices to have accommodating jobs. Earlier in the pandemic, large swaths of workers reported willingness to take a pay cut if they secured the benefits they wanted. But in recent months, a shift has occurred: while flexibility is still high on the list, pay is moving centre stage as a priority for job-seekers.

Back To The Green Dough

Both knowledge- and blue-collar workers with particularly in-demand skillsets are enjoying sharp salary rises, as labour shortages impact some industries. These hikes are coming as workers of all stripes are facing rising living costs – and wondering if they, too, could find a better-paying role elsewhere.

Looking For Better Paying Roles

<ul><li>Flexibility and company values are still important factors for workers, but they're only the difference-maker when the salaries are comparable.</li><li>The companies "winning the race" for staff will be those who can offer both the work-life balance policies workers say they want and competitive pay.</li><li>With inflation causing workers' pay to drop in real terms, we'll see almost a re-evaluation of those top-five reasons why people move jobs.</li></ul>

Asking Both Work-Life Balance And Competitive Pay

<ul><li>More than half (56%) of executive managers in a recent survey said they were starting to be faced with pay compression, where existing staff end up on lower salaries than new recruits</li><li>Petrol prices are at an all-time high; transport fares have increased, and food and other essentials are on an upwards trajectory</li><li>Some companies are offering financial and other incentives to tempt unhappy commuters back</li></ul>

Talent Shortage Across All Sectors

<ul><li>Rising costs mean that workers who can do their jobs from home are understandably reluctant to head to the office unless they absolutely need to.</li><li>Some companies are cognisant of employees' concerns and are offering practical solutions aimed at alleviating costs related to office days.</li><li>For example, media company Bloomberg is offering its US staff a $75 daily commuting stipend, which they can spend however they want.</li></ul>

The Extra Perks And Subsidies

<ul><li>Graduates are being handed six-figure salaries as a recruitment tool amid the current labour market conditions.</li><li>In some cases, these workers may find themselves trapped in jobs they hate, especially if workers have built lifestyles around earning big pay-outs.</li><li>Such wages can also skew young employees' perception of pay, blocking them from pursuing more meaningful career paths.</li><li>Huge salaries can also weigh on young employees with a psychological burden.</li><li>Companies themselves may not necessarily get what they pay for.</li></ul>

Skewing The Career Perception For Youngsters

<ul><li>Six-figure starting salaries will probably continue to be the norm in certain high-paying industries like Big Tech and Big Pharma.</li><li>It's unlikely there'll be much of a trickle-down effect for entry-level workers in less elite sectors in other sectors.</li></ul>

Not For Labour Jobs In McD Or Amazon

Flexibility has long been touted as the ‘it’ perk. But as pay packets swell, workers are increasingly prioritising bigger salaries over other benefits.

Stashed ideas

Why workers are choosing big pay packets over flexibility

Interviewing for a new job can be exciting — every conversation is a chance to say exactly what you want in a new role or company, and to make the case for why you deserve it. But one thing that can trip up even the most enthusiastic candidate is figuring out how to discuss money in job interviews.It’s natural to want to be paid fairly for your work. And yet discussing pay plainly with someone you hope to have a long working relationship with, not to mention with a hiring manager who has way more inside information than you, can feel unnerving.

Discussing Money In A Job Interview

Experts say you should go into every first interview with your salary expectations in mind. You ca check industry salary reports, use online databases and tap your network to figure out where you stand in the market.As for timing, there are a few different schools of thought as to when to bring up salary in a job interview.More companies are beginning to state their pay upfront, in which case you might discuss salary in first or second rounds. If you’re confident in what you want your salary to be, you might bring it up on the early side to make the most of your time.

When To Bring Salary Discussion

Avoid stating your salary expectations first. State a number too low and you could shortchange yourself in the future. State one too high and HR might move on to another candidate expecting lower pay.Instead, you can respond to the question by kicking it back to HR. Be kind and curious: “I appreciate that compensation is an important aspect to the job, and it has to work for the both of us. Given you’re the hiring manager in this role, and the expert on what the company can offer, I’d like to hear what you have in mind for the salary range of this position.”

What To Do If The HR Asks For Salary Expectations

Be clear about your absolute minimum and put that number at the bottom of your range. Your target number should be on the lower end of your range, too. Identify a high enough ceiling to give yourself room to negotiate upward later on.How wide should your range be? That’ll depend on how much you want the job, how much the pay matters to you and how much leverage you have at that point in the hiring process.

What To Say If Pushed For A Salary Range

Here's how to discuss pay during the hiring process.

How to answer ‘What are your salary expectations?’ and other tips for talking pay in interviews

Pay gaps are a huge problem in companies around the world. On average, women earn less than their male counterparts. Women of colour may earn over $1 million less in lifetime earnings due to unequal pay. Some companies are starting to address this problem. However, organisations often only identify the symptoms and fail to correct them: low starting salaries for people from marginalised communities, discrimination during promotions and appraisals, and other factors.

Pay gaps

Many leaders still encourage secrecy related to compensation. Line managers can play an important role in changing this culture:<ul><li>As a line manager, you are between your direct reports and the leadership team. You know how compensation and appraisal decisions influence your team's motivation and performance. </li><li>A survey found that when employees understand how salary decisions are made and can freely discuss their pay, they feel valued and more likely to trust their organisation. As a manager, you can normalise these conversations by learning how to talk about them with your team.</li></ul>

Taboo pay conversations

<ul><li>Create clear salary ranges for different positions on your team. Work closely with leadership and your HR department on setting benchmarks. Make this information public so that your direct reports have clarity around where everyone stands.</li><li>Be transparent about salary while hiring. Include the salary range when you advertise for a role. Evaluate compensation based on skills, expectations, and responsibilities for the role.</li><li>Conduct quarterly or annual reviews with each team member. Discuss and review their compensation and ask if they feel they are fairly compensated for their tasks.</li></ul>

How to talk about equal pay with your team

Talking about fair compensation shouldn’t be a taboo.

Managers, Here’s How to Advocate for Pay Equity

When someone on your team asks for a raise (assuming they're deserving), but you don't have the budget to increase their pay, can you give someone a promotion to keep up their morale? Just saying "no" to a pay raise or lying to them and saying it could happen in a few months will likely not end well. Instead, redirect the conversation toward the real cause. If you can fix that, you will have a greater impact.

Feeling undercompensated

The best way to find out why someone wants a raise is to ask them. Questions that can help to uncover the issue.<ul><li>What's your least favourite part about your job?</li><li>What's one thing we could do to improve how our team works?</li><li>How do you experience your workload? Do you feel overworked or underworked?</li></ul> Ensure that you are actively listening. Rephrase the message to confirm you understand it.

Get to the root cause

You may be unable to increase their financial compensation, but you can instead focus on providing them with career growth. Studies show that growth is a significant perk people want at work, even more than money. <ul><li>Introduce them to a mentor further along in a similar career.</li><li>Buy them a book or course that will help to develop them.</li><li>Empower them to take on a project to solve an important problem.</li></ul>

Give them new projects to work on

If you are transparent about your company's financial situation, when raises are considered, and your limitations, your employee looking for a raise will be more willing to wait. Transparency creates a deeper level of trust between employers and employees. However, a lack of transparency could lead to a toxic culture that causes people to leave.

Be more transparent

How to deal with one of your team members feeling undercompensated but giving them a pay increase is not an option. 

Should you give someone a promotion without a raise? In the 9th edition of Ask LH, we discuss what to do when you can't give someone a pay increase.

Promotion without a Raise? What to Do When Money is an Issue

Every recruiter worth their salt will ask about your salary expectations when you first start interviewing. Do not give them a number. What to do instead: Ask for the range they’re budgeted for the role.How to say it: “Can you tell me the salary band for this level? Happy to let you know if it’s within my range, and we can discuss specific numbers later when I’ve met the team.”

Negotiation starts earlier than you think

Go into the interview ready not just to answer questions but to ask some of your own. You will use this to negotiate later. Here are a few examples of what you should ask:<ul><li>What’s the biggest priority for the team right now?</li><li>Why is this role open?</li><li>What’s the biggest challenge for someone stepping into this role?</li><li>How does the org structure on the teamwork?</li></ul>

Mine for intel during interviews

Once you’ve been offered the role, the recruiter’s job shifts from evaluating you to closing you. Most experienced recruiters will ask you again to put up a number for your salary. Clever recruiters may even tell you that they “will go to bat for you.”What recruiters say: “If you give me your number, I will make it happen for you.”What they mean: “I’ll get you something lower, but kinda close to what you asked for.”

Don’t give in to the pressure

At FAANG-size companies (i.e. over 5K employees), compensation is heavily formulaic. In fact, there is often a separate team — the “compensation committee” — who sets your salary. They take into account your background, interview performance, and level. They give the recruiter a number to go with. The recruiter then gives you the number, and every time you negotiate they have to go back to that committee to ask for a re-evaluation.

At FAANG, your recruiter may have no say at all

Your initial offer speaks volumes if you know how to interpret the data.

Read between the lines

You may be dealing with the founder directly. It’s very likely there is no range for the role, as smaller companies have much less access to salary data. The goal at the initial offer conversation is to understand three things:<ul><li>The current state of the company (financing, runway, profitability)</li><li>The plan for your role/function</li><li>The value of the equity, considering exit scenarios.</li></ul>

At a startup, the playbook is different 

It can be tempting to think you need to negotiate now that you have data. Nope, not yet. The next step, instead, is to upsell your worth before you come back with any kind of counteroffer. This is especially important if you’re going for a senior role.What to do next: Ask for follow-up meetings with decision-makers. If you’re a Director or higher, you can usually ask to meet with any VP and possibly C-level execs. VPs can often meet with the CEO and even board members. Take your time; this is important if you want your salary to reflect your value. If everyone wants you, you’ll be calling the shots later.

Your job is to win hearts and minds

Did you know that women make only 47 cents in equity for every dollar a man makes? A HUGE reason for that is that many women don’t fully evaluate their offer before negotiating. Ask yourself these questions: <ul><li>Is the offer competitive? </li><li>How does it work? (When do I vest; what is the stock worth?)</li><li>Is it all true? (Is the value of the equity over-inflated?)</li><li>Does it add up? (Consider taxes on bonuses and stock.)</li><li>If you have goaled comp, are the goals realistic?</li></ul>

OK, now get some good data

Getting paid more up-front doesn’t always mean you’ll make the most overall. Plan carefully.Not all offers are made equal — in fact, they are intentionally confusing. At Google, you may get a front-loaded vesting schedule on your stock; at Amazon, sizable cash bonuses the first two years. It seems obvious that you should look at the comp, but that’s not everything.

Comparing offers

It can be awkward to ask for more money, but trust me, everyone expects you to do it. On top of that, it doesn’t help that so much of the advice out there is conflicting.You absolutely do not need multiple offers. Just being able to say you’re speaking to other companies is sufficient — you can quote the expected salaries for other roles if needed.

Time to make an ask

Guest post by Niya Dragova, co-founder of Candor

Why workers are choosing big pay packets over flexibility

How to answer ‘What are your salary expectations?’ and other tips for talking pay in interviews

Managers, Here’s How to Advocate for Pay Equity

Promotion without a Raise? What to Do When Money is an Issue

The 10 commandments of salary negotiation

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