CareerProgression #SalaryNegotiation #IndustryStandards
Introduction: Navigating Promotions and Pay Raises
Grinded my ass off this last year, handling almost all of the dev work for my team. I led team calls, improved processes, and regularly gave presentations. Today, I got promoted from Lead to Principal with a 5% raise. It’s non-negotiable due to company policy. Am I getting an industry-standard deal or a lowball offer? Let’s dig in. 👇
Standard Raise for a Promotion from Lead to Principal 🤔
When it comes to promotions, a 5% raise might seem a bit underwhelming. However, it’s vital to understand:
- Industry Norms: Generally, promotions can range from 5% to 20%.
- Company Policy: Each company has different benchmarks and policies for promotions and raises.
- Role and Responsibility: Moving from Lead to Principal is a significant jump in responsibility. A higher percentage raise is often justified in such cases.
Industry Insights: What Others are Getting 💼
Comparing salaries and raises in the tech industry:
- Tech Industry Averages: A typical raise for a significant promotion like Lead to Principal is often around 10-20%.
- Market Conditions: The state of the market can influence raises. Current trends might show more conservative increases due to economic factors.
- Your Numbers: Starting at $145,000 in 2021 and now at $175,000 plus $30,000 in bonuses, your total compensation is competitive but could be more generous given your contributions.
Evaluating Your Promotion and Raise 💭
To determine if you’re being lowballed:
- Total Compensation: Factor in bonuses. Your compensation is $205,000 per year, which is competitive in many markets.
- Cost of Living: An average cost of living city might mean your compensation is quite reasonable.
- Job Market Data: Verify salary reports from reliable sources like Glassdoor, PayScale, or industry-specific surveys to see if your compensation aligns with similar positions.
Recruiters and Salary Expectations 🍒
When a recruiter says your expected salary is $50,000 higher:
- Context is Key: Recruiters might focus on different market segments or have outdated data.
- Confirm with Multiple Sources: One opinion isn’t a definitive answer. Cross-check with multiple recruiters and industry reports.
- Know Your Worth: Your experience and the value you bring should be the guide for your salary expectation.
Making the Decision: Content or Lowballed? 💸
Balancing it all:
- Promotion Celebration: 🎉 Celebrate the promotion! It’s recognition of your hard work.
- Re-evaluate: If you feel undervalued, when market conditions are better, renegotiate or explore other opportunities.
- Stay Informed: Regularly update your knowledge about industry trends and salary standards.
Conclusion: Your Career, Your Call 🌟
Overall, while your raise might appear modest, your total compensation package is competitive. However, always keep an eye on market trends and advocate for what you’re worth. Promotions can be a mix of pay raise and career growth, so balance both factors before making a decision.
It’s relative , how much others get in your org. Also if your level up, probably bonus is up as well.
Congrats on the promotion, but it’s also probably title inflation. 175k+30k bonus seems about right for a “team” lead (which sounds like what you are) without any other amplifying information.
I think faang puts principles close to 700k-1M according to levels.fyi. But I think those principles do more than lead team calls and put together presentations
It strongly depends on what type of company it is.
It is possible that you were capped at the your lower bracket, and with the new title you have more headroom for future raises.
And yes, the recruiter is worthless. Don’t talk to recruiters that try to undersell you. Talk to recruiters that get you more money.
There is average industry standard, and faang industry standard. Depends on which one you are asking here.
You can not always use the pay raise with a promption as the guide. Some times you already are making that much already at your last title so no raise.
Your TC is with in range of what a normal principal would make at your location.
Title means nothing
Regarding the promotion and the 5% raise, it really depends on where you’re at within the salary band for that position within the company. You might have been at the top of the band for that title, and 5% put you at the lower end for the next title.
It’s nice when companies are transparent with these compensation ranges as your expectations are better aligned and reasonable.
Regarding what the going rate is, it really depends on too many factors and the only way to know is to research positions you’d be great at and see how your compensation compares against those.
Most recruiters will sway the numbers depending on their clients. So I wouldn’t go based off their word.
That reminds me of Microsoft’s max 5% promotion raises. When I learned that’s the max for promotion it really motivated me to study and try to leave. I don’t see a career here, only a stepping stone to my next job.
Is this a telecom company by chance?
Location? Because 200k is an intermediate dev salary in some locations.
I wouldn’t say you should be happy, but that kind of raise cap is not uncommon.
First, bear in mind nothing is “non-negotiable”, it’s just a matter of how high they have to go to get an exception signed off. Unless the company is having financial problems they likely could’ve gotten you more, but it would’ve involved convincing someone at the C-Suite level and they didn’t think that was worth the trouble.
Take your experience and new title and go get a better offer (that recruiter was full of shit, yea). They might match it, they might beat it, maybe you’ll just take it and bail. More money either way.
If you are in Canada, that sounds about right. I can’t speak to US companies, but in a non-FAANG in an average cost of living area, it could be fine.
Just got promoted from mid to senior with a 7% raise so yea sadly seems to be within the modern norm. 2 years ago got a 12.5% raise was what I got no promotion needed
Low Cost Of Living?
The title doesn’t matter if your employer is not a Tier 1.
Is that compensation amount your total compensation or just your salary
Do you own an area of the business, determining the direction of what you own? Are you executing your vision, or someone else’s?
If the answer is no, your comp is fair.
>I get my promotion today and it’s a 5% raise, non-negotiable per company policy.
Get another job that pays higher salary. Stop the lame complain.
In some cases title promotion is seen itself as the reward, and therefore the corresponding pay raise is small. Depends on the company/policy. It’s definitely more common than one might expect
What better way to find out than to interview in other places?
That way you can see if youa re really a principal, based on the interview material, and you can see if youa re being lowballed, based on the offers you get.
How many YOE do you have?
no stonks? equity is what you should be showered with.
at 175k now and 30k bonus in average cost of living city – in this market, i’d focus getting my dev team to dev while you start managing the project when you code it should be to chip in and help or cause you want to.
Change the job to work better for you in your new role. If the culture is anything above a 7/10 keep that damn thing, either you’ve done too much comparison and looking at ‘greener grass’ or the culture is that good.
you can always go back and talk about salary when the employment market is better.