I had a conversation with a friend very recently about how our company handles counter offers.
"They don't believe in counter offers."
"Don't... don't believe in them? What's there to believe in?"
"That's what they say."
"That's the dumbest thing I've ever heard!"
"I dunno, it kinda makes sense to me."
"What?!"
"Well, the reasoning is if you're only there for the money, then why would they want you?"
"It's a JOB! Of course I'm there for the money. Otherwise I'd be doing it for fucking free! What if the money is the only thing keeping me from fucking leaving?!"
"Hm... yeah, that's a good point."
I don't know when or how one's passion became some sort of counterpoint to their compensation. Just because I love what I do doesn't mean I don't deserve more money. It means I'm lucky enough to be driven far beyond most, and endowed with a greater amount of ability, and thus a rare and valuable member of the team.
Oh you can't do that? Right, so money IS important then..
Yet they expect nearly every one else shouldn't have any financial expectations at all.
And yet, when I've worked there for two years and learned a lot and did some good things there, and I still haven't gotten a raise, I don't feel appreciated. And when I don't feel appreciated, I look for something else.
1) Cost of Living - This can change bc of higher rent, getting married, having a kid or a million other things
2) I'm unhappy about something else - When I have another issue with my work, it often leads to what many people have said in other comments..."I'm not paid enough for this" which can take many different forms. Addressing this is much more important than whatever financial increase you do or do not get in asking for it.
3) Envy - If you find out all your peers at similar stage companies are paid more than you, or that your coworkers are, you'll probably want a raise.
In my experience, #2 is actually the most common that leads you leave and even if you get the raise, a manager needs to make sure they treat the condition (whatever is bothering you) not just the symptom (I want more compensation for my work).
If that kind of interaction makes you uncomfortable, I guess you probably should go find another job since you might not have a great relationship with your company.
I (personally) feel that there's an implicit understanding with my employer, wherein my above and beyond efforts will result in increased compensation. If I feel like I've been clearly outperforming my compensation level and that's not recognized, I'm more likely to search for a new job than to ask for a raise, because my current employer has already failed to meet their end of the bargain.
In a well-run shop, managers have a very good idea as to who is worth what, and how much the company stands to lose if they lose good people. Staying one step ahead of this curve is a fundamental part of their jobs as a managers.
Obviously, the rules are a bit different in an early-stage start-up where the founders are doing everything at once and hoping something connects. But once an operation has hit cruising altitude, you really shouldn't have to ask for a raise if you're actually worth what your asking.
Your expectations around compensation should be based on explicit not implicit understandings. Making assumptions about how your emploeyer is going to make decisions about your compensation is not only likely to lead to disappointment, it's a poor way to maximize your salary if that's what you're interested in.
Most startups will hire (or push for hiring) a "senior person" at the "maximum rate allowed by the board". This includes a mix of stock/yearly comp.
Depending on hiring circumstances you can potentially push this. If there is a need, the will find a way to make things work out.
Once hired, from the employees perspective, it becomes a game of maintaining expectations. Unfortunately for the employee, in the case of startups (especially early), the expectations are quite high and any extra effort is tied in to the initial offer/hiring agreement.
Early stage startups are a gamble. There are often unexpected twists and turns. If you agree to X and Y at time T, three months down the line, the expectations at time U may be much greater.
As a non founding employee, your initial contract starts when you join with the expectations around the company when you joined. Carrying those same expectations along the way if the company is not growing in the same manner as you expected is a detriment to yourself.
When you realize this, it is time to re-evaluate and decide what is right for your current situation.
Does if fit your initial agreement? Then maybe you continue. If it doesn't, you need to consider renegotiating or looking elsewhere...
And people say jumping from job to job looks bad. If it does, I sure as shit haven't seen that side of it.
Some companies are willing to keep up, because they don't want to replace employees, but for most, it's cheaper to hire someone underpaid for a year or so until they jump ship, then repeat.
Sometimes they are actually trying, if the problem is internal politics preventing paying staff properly, but more often they're hoping you'll either forget about it or leave instead.
a) They don't value the work I am doing.
b) I am not doing work that is valuable enough to be noticed.
Both options mean it is time to look elsewhere.
That sounds like the kind of job hunt that puts you into the exact same position of frustration.
Honest question: have you quantified your value to your current employer in dollar terms?
A lot of people I know say they're worth $x because that's what another company might pay them, but I can count on one hand the number of these people who actually did the math on how much revenue/profit their employer derived from their work.
I made 65,000 per year for four years. What do you think I should have made, money-wise?
At my current gig, same thing. Billions of dollars at stake, and I single-handedly design, build, deploy (one-click -- the power of scripting) and maintain systems used by over 1000 people, from executives to line workers. What is my true worth to the org? Do you think they would pay be $900,000 a year? Even at that rate, they would still make money off my work.
Start your own business and keep all the profits you earn.
This leads to why small businesses are hard: the owner has to do everything themselves, and at many things, they are bad.
At my current company, I give the car to the free valet in the garage, grab a cup of tea, walk to my desk and sit down and work, without worrying about all the infrastructure stuff.
True, but more importantly, before all of that, they made something people want to pay for and acquired enough customers to pay for that shit, and for lots of salaries too.
That's a good accomplishment, unless they're part of some government-supported cartel etc. There are plenty of those too.
The value to another company, whilst interesting to see if you're at the right place, doesn't necessarily help figure out your negotiation position if you'd prefer not to move.
Others reasons being: freedom to experiment, work culture, flexibility, and being respected as a person not just as an employee.
The minute you enter the realm of "counter offers" you have more than just business interests at play.
If they are too busy to make sure I'm not having to question my value, I would rather find another employer that may not have this issue.
Having said that, money is one of the last things that cause me to leave a job. If I enjoy what I'm doing and the people I work with, it usually doesn't matter (as much) what raises I receive.
I also recognize everyone is different. This is just my preference and what works for me.