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What's the best time to ask for a raise?

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Senior Software Engineer at Series C Startup7 months ago

Hey folks,

I'm currently facing a tough decision - whether to ask for a raise at my current company. I am unsure if it's the right time to do so or not. Here's a little context to help you understand my situation

My timeline in the company:

  • In 2023
    • I joined the company as a Sr SWE II (L4)
    • I joined the company nine months ago on August 23'
    • I made it to the second review cycle of the year (mid-October), and I got a "Consistently meeting expectations." My manager then said that he was very impressed that I managed to get so much done in that short time and that he could see strong signs of a Staff Engineer (L5) in me.
    • I shipped the most important project in Q4, 2023, on time. I even ended up as the technical lead of that project (the Staff engineer in that project got pip-ed, but that's another story)
  • In 2024:
    • I mentored a Sr SWE I (L3) on her first project as a lead.
    • I'm the lead of the web working group
    • I'm interviewing candidates almost on a weekly basis
    • I'm one of the owners of the Design System initiative
    • I just got a "Consistently exceeding expectations" in our current review cycle. I've been praised for how easy it is to work with me, my technical quality, my communication skills, and my thoughtful PR reviews. And that I should keep working on my influence across the organization.

How things are right now:

  • My previous manager quit to join another startup, and I got an interim manager (we're hiring another manager for my team)
  • I ended up talking about salary adjustments with my previous manager the other day (there, I didn't ask for a raise; it was just a casual conversation). He told me that the company does a compensation review every January and that I wasn't considered for the one that happened in January 2024 because I didn't join earlier than July 2023.
  • The next performance review will happen in mid-Oct 2024.
  • I will be leading a new tiger team (6 engs) until the end of Q2.

Questions I have right now:

  • Is this the right time to ask for a raise?
  • I've never asked for a raise.
  • I know for a fact that an L3 has a pretty similar (<5%) salary to me, and I know that another L4 has a >5% salary than me.
  • Should I wait until I finish this new project, the next performance review, or my first anniversary?
  • We're in the hockey stick growth stage.
  • I also really like working here, and the market has been bad lately.

Thanks!

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Discussion

(4 comments)
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    Senior Software Engineer [OP]
    Series C startup
    7 months ago

    Thanks Rahul and Alex,

    Relative to other companies in a similar stage (similar amount of money raised, revenue, or headcount), do you have data to suggest you're being underpaid?

    I don't think so. My salary is solid compared with other companies in the region (Latam) and just okay compared with other international remote-first companies (Buffer, Zapier, etc.).

    One thing to note: the L3 engineer I mentioned in the OP makes almost the same as I do, and I'm at the upper level of the L4 band in terms of scope, responsibilities, and impact. This is what bothers me the most tbh.

    Do you know others at the company who were able to get an off-cycle salary increase?

    I don't have an answer for this.

    I would suggest having the conversation about compensation focused on the next (October) cycle. The purpose is to show that you do care about comp and the manager should keep it in mind if they want to retain you.

    Just to make sure I understand correctly, you're suggesting I raise this issue during the next compensation cycle in October, not before. Is that right?


    I'll watch the videos you suggested and come back with an update. TY!

  • 0
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    Tech Lead/Manager at Meta, Pinterest, Kosei
    7 months ago

    Two additional pieces of data that would help here:

    • Relative to other companies in a similar stage (similar amount of money raised, revenue, or headcount), do you have data to suggest you're being underpaid?
    • Do you know others at the company who were able to get an off-cycle salary increase? If you know others who asked and received, it's more likely to happen.

    Most Big Tech cos are regimented about when they give out pay increases, so I'm doubtful that this kind of technique would work. But depending on how big your Series C company is, they may be more flexible.

    WIthout knowing the answer to the above questions, I would suggest having the conversation about compensation focused on the next (October) cycle. The purpose is to show that you do care about comp and the manager should keep it in mind if they want to retain you.

    If the interim manager feels lax/open about it, then you can potentially ask "I wonder what the process is to request a compensation adjustment before the October cycle?" I definitely would not lead with that, since you like working at the company, and you don't want to jeopardize that in any way.

    I talk about this a bit in the negotiation course: Negotiating Your Current Salary.

    • 0
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      Tech Lead/Manager at Meta, Pinterest, Kosei
      7 months ago

      Another thought is to understand various options for a "raise". I assume you meant a salary increase, but there are other possibilities of compensation that the company may have more flexibility around:

      • More equity
      • One-time bonus to tide you over until October
      • More PTO/flex-time

      I'd talk to other folks to figure out the possibilities and also evaluate what's important to you.

  • 0
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    Tech Lead @ Robinhood, Meta, Course Hero
    7 months ago

    Asking for a raise ad-hoc is tricky and given that your company is Series C (quite mature for a startup), I imagine they have a formal performance review and compensation adjustment system. You also mentioned that the other person at your level has a similar salary, so you're probably in a good part of your pay band already.

    Anyways, when it comes to asking for a raise, I recommend this: How To Negotiate A Raise At Your Current Job

    When it comes to timing, it looks like you're crushing it, so you can probably just bring it up in your next manager 1 on 1.

    I think the best path though is to work with your manager about getting promoted (or at least getting a very strong rating) and getting more money that way: [Course] Nail Your Promotion As A Software Engineer