Whether you are responsible for salary decisions or just give input to someone else, it is important to understand the overt and subtle considerations around determining appropriate pay raises for your team. How you handle salary is a critical part of performance management and retention. This talk gives some practical advice and things to keep in mind when you are considering what type of pay raise to make. I’ll also provide some points to make the salary discussions in your performance reviews easier.

1. Raising the subject of raises
Kevin Goldsmith, CTO
LeadDev Together

2. 2
Doing compensation fairly is one of
the most important things you can
do as a people manager.

3. 3
Making salary recommendations

4. 4
! The person’s performance relative to their role/level
Some things to consider

5. 4
! The person’s performance relative to their role/level
! Their place in the salary band
Some things to consider

6. 4
! The person’s performance relative to their role/level
! Their place in the salary band
! Their previous raises
Some things to consider

7. 4
! The person’s performance relative to their role/level
! Their place in the salary band
! Their previous raises
! Their velocity
Some things to consider

8. 4
! The person’s performance relative to their role/level
! Their place in the salary band
! Their previous raises
! Their velocity
! Are you promoting them?
Some things to consider

9. 4
! The person’s performance relative to their role/level
! Their place in the salary band
! Their previous raises
! Their velocity
! Are you promoting them?
! Your total salary budget
Some things to consider

10. 5
The Budget

11. 5
! What are the expectations around the budget? Can you go over?
The Budget

12. 5
! What are the expectations around the budget? Can you go over?
! The larger your team is, the closer you should be to hitting your budget
exactly.
The Budget

13. 6
Common mistakes

14. 6
! Everyone has “over-performed” relative to expectations.
Common mistakes

15. 6
! Everyone has “over-performed” relative to expectations.
! Over-performing after a promotion.
Common mistakes

16. 6
! Everyone has “over-performed” relative to expectations.
! Over-performing after a promotion.
! Tiny (<2%) raises
Common mistakes

17. 7
Tips

18. 7
! A small deduction in the raise of someone making a lot can be a big raise to
someone making little.
Tips

19. 7
! A small deduction in the raise of someone making a lot can be a big raise to
someone making little.
! Rounding down to an even $/€ amount for someone, can be a big percentage
increase for someone else.
Tips

20. 8
Making sure that salaries are fair

21. 9
It is critical that salaries and raises
are done in a consistent way across
the organization

22. Confidential and Proprietary. © 2021 Anaconda
Ensuring fairness
10
Directors
Team Leads
VP

23. Confidential and Proprietary. © 2021 Anaconda
Ensuring fairness
11
Directors
Team Leads
VP

24. Confidential and Proprietary. © 2021 Anaconda
Ensuring fairness
12
Directors
Team Leads
VP

25. 13
If your manager isn’t doing this, you
and your peers can do it yourselves!

26. 14
The review conversation

27. 15
Some things to consider

28. 15
! The salary review conversation is not a negotiation (in most companies and
cultures).
Some things to consider

29. 15
! The salary review conversation is not a negotiation (in most companies and
cultures).
! You are representing the company, be prepared to defend the numbers (even if
you disagree).
Some things to consider

30. 15
! The salary review conversation is not a negotiation (in most companies and
cultures).
! You are representing the company, be prepared to defend the numbers (even if
you disagree).
! Your message should be consistent with your performance guidance through
the year.
Some things to consider

31. 15
! The salary review conversation is not a negotiation (in most companies and
cultures).
! You are representing the company, be prepared to defend the numbers (even if
you disagree).
! Your message should be consistent with your performance guidance through
the year.
! Do not make a promise you can’t keep (“if you do <X> this next period I will get
you that raise”).
Some things to consider

32. 16
Final thought

33. We can fix a lot of the
mistakes we make as
managers, but a mistake
in compensation can have
lifelong consequences.
17

34. Make the effort to do
it right.
18

35. Thank You!
Kevin Goldsmith
@kevingoldsmith
https://kevingoldsmith.com