When tech professionals think of increasing their total compensation, they often focus on negotiating a higher salary or switching companies. Those are fabulous ways to increase your pay, but they shouldn’t be the only ways. You must also be strategic once you’re in the role if you want to maximize your earning potential. Otherwise, you’re leaving money on the table, often tens of thousands of dollars (or more!) if you work in the tech industry!
As a tech career coach, I regularly work with tech leaders to maximize their compensation. In this article, I share strategic ways to grow your total pay in tech without switching jobs every few years, which often seems like the only way to boost your earnings. I also answer common questions I hear about maximizing your tech compensation.
7 Ways To Increase Your Total Compensation In Tech Without Switching Companies
1. Ace your performance review.
In many tech companies, compensation increases align with performance reviews, and a stellar performance review leads to a raise.
Depending on the company, you may receive a one-time bonus, equity, a salary increase, or a combination of the above.
Many tech professionals make the costly mistake of not getting clear on how performance reviews are conducted and what factors are most important when determining pay increases. If you’re unclear, request a prep conversation with your manager and HR business partner to clarify what goes into your review and which metrics carry the most weight.
Then, track your achievements quantitatively so you can clearly demonstrate your value during your review. This might look like the number of users impacted, revenue generated, or cost savings.
2. Increase your scope.
An increase in your oversight and responsibility, whether temporary or permanent, is one of the most natural ways to grow your pay in tech. It’s also one of the most common goals my coaching clients tackle.
Some companies will reward increased scope with additional pay, but at others you must advocate for your increase. If you don’t ask for more, many companies will continue paying your old rate despite your added workload.
Earlier this year, a client was asked to step in as the interim CIO after her boss’s unexpected departure. Her oversight grew from managing 1 department and 3 directors to leading 3 departments and 3 VPs. Until I coached her to ask for a pay increase, the company was compensating her at the VP-level salary.
3. Make an internal move.
Switching to another team or department can sometimes result in a pay increase, especially if your scope increases.
Whether you applied for the role or were recruited, don’t be afraid to ask for a compensation review in your new role.
For example, a client moved from the customer success team to product. Their team size shrank, but their business impact grew exponentially. After I coached them through a series of conversations with their manager and HR, their compensation grew nearly 20%.
Important: When considering internal moves, don’t seek out just any opportunity. Look for roles or teams where your impact or visibility will expand, you can own projects end-to-end, or you can solve a critical problem. You want to position your move as a win for the company so you can make the case for them adjusting your compensation to reflect your increased value.
4. Ask for a compensation increase.
It sounds obvious, but advocating for yourself can lead to additional pay.
Tech companies vary in how they approach salary reviews. Larger organizations usually involve considerable bureaucracy, while startups may allow more informal conversations.
Notably, compensation tends to be more standardized at the IC and management levels, especially in large tech firms, but flexibility increases at the director, VP, and C-suite levels.
Recently, a client at a Fortune 100 tech company asked their manager to advocate for a compensation review after they were performing beyond the typical expectations of someone at their level. Their request went to the compensation department, which reviews requests biannually, and they received a significant adjustment.
The key is to familiarize yourself with your company’s pay philosophy and processes and then advocate for yourself. Frame your ask around measurable outcomes, revenue or cost impact, and contributions beyond the typical expectations of your current role.
5. Fully leverage your benefits.
Reviewing your employer-sponsored benefits can be another way to maximize your tech pay. Many tech professionals underutilize benefits, leaving money on the table.
For instance, a leader recently realized they had thousands of dollars in professional development funds that were about to expire. Instead of letting the money go to waste, they hired me as their executive coach and gained access to resources they’d have paid for out of pocket.
Take a moment to review your employer benefits and ensure you’re fully leveraging your PD funds, Employer Assistance Program (EAP), education reimbursement, wellness stipends, and other perks.
Also, consider equity and stock-related benefits. Are you maximizing your company match by participating in employee stock purchase programs? Do you understand your vesting schedule and potential gains from equity refreshers? If you’re an executive, understanding deferred compensation and long-term incentives can significantly boost your total pay. In short, speak to your financial advisor!
Tech companies tend to offer robust benefits, but you must utilize them in order to realize their full value.
6. Pursue consulting or fractional work.
Tech executives are increasingly pursuing consulting or fractional roles. These opportunities let you serve in a part-time capacity while still keeping your full-time role, typically being paid hourly or on a retainer basis.
Of course, you want to check your employment contract for restrictions before pursuing external work.
A client recently became a fractional CTO for startups. They bolstered their income while the startups gained an experienced leader without hiring one full-time.
Beyond consulting, consider any side projects or advisory roles you could take on to leverage your domain expertise. Writing content, giving paid talks, or mentoring emerging tech leaders can all provide additional income while simultaneously positioning you as a thought leader.
This additional paid work can really be a win-win.
7. Switch companies.
I realize this article is about avoiding job-hopping. Still, I’d be remiss to mention that switching companies is often a fast way to increase your total compensation.
Many of my clients who feel “stuck” internally find that switching companies is the most effective way to grow their pay. This can look like taking a higher role at another company, proving yourself there, and then potentially returning to your previous company later.
As Cardi B likes to say, you have to make money moves.
How Do I Know Whether I’m Being Paid Fairly In Tech?
Data is your best friend. Salary databases can help you calculate the market rate for your role, company, and experience. Levels.fyi is the top salary comparison tool for the tech industry.
Users in online communities like Blind and Reddit often share their salaries anonymously.
If you’re a senior tech executive at a publicly traded company, you can find salary data in the company’s annual proxy statement.
Is Getting A Promotion The Only Way To Increase Your Compensation In Tech?
No. To summarize, while landing a promotion is one strategy for securing more pay, it’s far from the only one. Doing well on your performance review, securing a new internal role, and even asking for a compensation increase can all lead to additional compensation. Also, consider asking for a raise if you feel underpaid. Additionally, ensure you’re fully realizing the value of your employer-sponsored benefits. You can also switch companies, since making a lateral move often results in additional pay.
I Didn’t Negotiate My Salary. Is it Too Late To Advocate For More?
Nope. Increasing your scope and responsibility, landing a larger role, switching teams or departments, or simply asking for a compensation increase can all lead to additional pay. The key is to advocate for yourself and the salary you want.
How Often Should I Ask For A Raise?
It depends. Asking for more money doesn’t necessarily need to wait for performance review season. Instead, focus on requesting a pay increase when you’ve increased your scope, responsibility, or business impact. You want your manager to be able to easily justify that your current compensation is far less than the value you deliver to the company.
Final Thoughts On Increasing Your Pay In Tech
Increasing your total tech pay doesn’t always require negotiating upfront or switching companies. You can be strategic, advocate for yourself, and leverage opportunities once you’re in the role in order to maximize your pay. Be intentional during your performance reviews, look for opportunities to expand your scope, and consider internal moves. Also, make the most of your company-sponsored benefits, and maybe even consider consulting or fractional work. You’ve got this!
