"When I graduated from college, the country was still reeling from the 2008 financial crisis. I had a degree in English from a small liberal arts school and a few internships under my belt. I was excited to snag one of the rare editorial assistant jobs out in the world. When the offer came, I said yes before the email even finished loading."
"Let's look at why. Raises are usually given as percentages of a salary. A "standard" 3 percent bump each year is called a merit increase, but most of the time it's just COLA, cost-of-living adjustment. Translation: your boss is helping you barely keep up with the pace of inflation. Say your starting salary is $30,000. Meanwhile, your colleague negotiates $35,000."
Starting salaries set the baseline for future raises and compound over time, so small early pay differences become large disparities. Employers often grant percentage-based increases that track inflation rather than true merit, so failing to negotiate initially reduces long-term earnings. Negotiations should emphasize results, evidence, and timing rather than emotion. Preparation, appropriate context, and choosing the right moment increase success. Economic conditions and perceptions of replaceability influence negotiation leverage. Even modest negotiated increases can meaningfully affect loan repayment and lifetime income, making initial compensation conversations financially important.
Read at Substack
Unable to calculate read time
Collection
[
|
...
]