What nobody tells you
- Raises track your band, not your effort. Moving bands usually requires a title change or a new employer.
- The person hired after you is often paid more than you for the same job. Budget for new hires is fresh; yours is a legacy line.
- 'We pay competitively' means 'we benchmark against a peer set we chose.' Ask which peer set.
The basics
- Total comp = base + bonus + equity + benefits + retirement match. Compare like with like.
- Most companies run internal bands with a minimum, midpoint, and maximum. Midpoint is 'fully competent in role.'
- Merit budgets are typically 3–4% annually. Market corrections and promotions are separate pots of money.
The framework
Three reference points
Triangulate before you conclude anything. One data source is an anecdote; three is a case.
- 01
Market: what the role pays elsewhere, in your city, at your level.
- 02
Internal: where you sit in your employer's band for your level.
- 03
Replacement: what it would cost to hire and ramp someone to do what you do.
The playbook
Words they use without explaining
- Compa-ratio
- Your salary divided by the band midpoint. Below 0.9 with strong performance is a real argument.
- Market adjustment
- An off-cycle correction when a band moves. Separate from merit and promotion.
- Total comp
- Everything, annualized: base, bonus, equity, match, benefits.
The conversation — what to actually say
Opening with your manager
“I'd like to talk about compensation. Based on the market for this level and what I've delivered this year, I believe I'm below band. Can you tell me where I sit in the range?”
They say 'that's not how we do it here'
“I understand there's a process. Help me understand the process, and what would need to be true by the next cycle for a market adjustment.”
They ask if you have another offer
“I'm not shopping. I'm asking to be paid in line with what this work is worth here.”
The mistakes — what people get wrong
- Leading with personal need. Rent going up isn't a compensation argument.
- Naming a number before you know the band — you'll anchor yourself low.
- Threatening to leave unless you'd actually leave. It works once and costs your standing.
- Comparing to one loud colleague instead of a range.
Ask yourself
- If I were hired today, what would they have to pay to get me?
- Am I underpaid, or mislevelled, or both?
- What would change if the answer is yes — and am I willing to do it?
Go deeper
- Book
Never Split the Difference — Chris Voss
Calibrated questions for the conversation above.
- Tool
Pay transparency postings
Search your title in states with mandatory band disclosure.
- Practice
One annual interview loop
The cheapest recurring market benchmark that exists.
General educational information, not legal, tax, medical, or financial advice. Rules vary by country and change over time — verify with a qualified professional before acting.