Performance review season is upon us. For many, that either means last-minute preparation or outright dread. But what if we’ve been misunderstanding this meeting all along?
I’ve spent my career in executive compensation, helping leaders decide what and how to pay their executives. I did this in consulting and at two global retailers, most recently leading the global equity and executive compensation teams at Lululemon. Now, at The Thoughtful Co., I help women negotiate their pay. Across all these roles, I’ve seen one pattern again and again: people don’t dedicate nearly enough time, energy, or strategy to performance reviews.
When else do you have scheduled time to discuss your career and your compensation? This is your moment to advocate for yourself. Whether you’re early in your career or in the C-suite, utilize it.
Do Your Research
Before your review, spend the time to research your compensation. Unfortunately, reliable market data can be hard to find. Platforms like Glassdoor and Indeed often rely on incomplete or inaccurate submissions, and since they’re funded by employers, there’s a built-in conflict of interest.
More recently, people are turning to tools powered by large language models (LLMs) like ChatGPT. But these tools draw from biased and aggregated data sources, which skew results. New research shows that LLMs are recommending lower salaries for women than men, even when their qualifications are identical. In one example, when asked what salary a woman should request, the model suggested $280K. When the exact same prompt was used for a man, the recommendation jumped to $400K. That’s a $120K difference, driven by gender alone.
So…what to do? The Thoughtful Co. has created a tool to close this gap. Enter: EquiPay. A compensation market data platform designed exclusively for individuals, vetted by compensation experts.
We built EquiPay to provide a comprehensive market evaluation of pay for all genders, including insights on bonus structures, stock options, severance, parental leave, vacation, and much more. It enables folks to negotiate with confidence, armed with the full picture. It also shifts the power back to employees. For too long, compensation data has been controlled by employers. Why can’t we be on an equal playing field?
Prepare Your Ask
Once you’ve done your research, use it to build your ask. A lot of us think about salary, but what other components are important to you? EquiPay provides a market evaluation against 60 items. These include salary, bonus structure, one-time awards, stock options, parental leave, severance, professional development, vacation, and moving allowances.
Think holistically about what matters most to you and be specific. Know your numbers, titles, percentages, and timelines in detail. If you don’t know them, the person on the other side of the table won’t know them either.
When it comes time to make your case, start with you and the value that you add. What measurable impact have you had this year? What would the team lose if you left? Pick three concise, compelling points rooted in performance. For example:
- “In the past year, I’ve brought in three new clients,which has enabled us to grow our revenue by X%.”
- “I implemented a new process that saves our team X% of its time, allowing us to take on two new projects for the firm.”
- “I’ve built a transparent and supportive team culture where people feel valued, resulting in full staff retention over the past three years.”
Have market data to use as needed to inform where you got the numbers from (if you get asked), but don’t base your whole ask on it.
Invest in Yourself
Once you’ve built your case, practice! We work so hard for our companies but don’t spend the same time on ourselves. Consider your body language, your tone, and how you’ll respond under pressure. Rehearse different scenarios and practice negotiation techniques (hint: use silence and don’t agree to any offer real time).
Negotiation is a skill like any other, and it improves with practice. Starting now makes future conversations easier, and even small wins compound over time. Research shows that a $1,000 difference in your starting salary can add up to more than $500,000 over a career. I know a lot of us are not at our starting salaries anymore, but the principle still holds true.
As performance review season approaches, take it seriously. This isn’t just another meeting. It’s one of the most valuable opportunities you’ll get to advocate for your career and your future wealth.
Jillian Climie is the Co-CEO & Co-Founder of The Thoughtful Co.
