A seasoned HR director reveals how to enhance your career, negotiate effectively, and maximize your earnings potential.

We hear your requests! Many have asked for more discussions on career progression and salary negotiations. This episode features Tracy Keogh, who shares her expertise on these topics.

As the Chief Human Resources Officer at HP, Tracy oversees global HR strategies, employee communication, and social responsibility. Her previous experience includes serving as Senior VP at Aon Hewitt, where she empowered women executives to negotiate effectively. In today's episode, she offers valuable insights, including crafting a term sheet, requesting off-cycle salary reviews for quicker raises, and avoiding self-negotiation pitfalls.

Tracy addresses common misconceptions, such as the belief that asking for higher pay is impolite. She emphasizes that the saying, "you don't get what you don't ask for," has never rung truer regarding salary discussions.

Before entering any negotiation, it's essential to conduct thorough research. Understand industry standards by consulting online resources, headhunters, friends, and reliable contacts.

Next, create a term sheet detailing all aspects of your compensation: current salary, expected future salary, desired title, bonuses, vacation days, retirement plans, and what it would take for you to consider switching jobs.

Crafting this term sheet, referred to by Tracy as an "exhaustive list," provides clarity on your total compensation package. "Documenting everything helps illustrate your current value," she notes.

Tracy warns against negotiating against yourself. Be cautious not to disclose your salary expectations first, and remember that many states prohibit employers from asking about your previous salary. Companies often leave room for negotiation in their initial offers; if you feel undervalued, consider whether that organization aligns with your worth.

She also highlights the importance of negotiating from the start. Subtle hints about your financial responsibilities can influence your initial offer. For example, stating that you are the primary earner for your family can lead to higher salary considerations.

Additionally, she advises getting all agreements in writing to safeguard against future changes in management that may not honor verbal agreements.

In the Mailbag segment, we address listener inquiries about investment returns, credit card limits, and engaging partners in financial discussions. We also stress the need for regular breaks at work, even if it means taking a moment in the restroom.

Transcript

Jean Chatzky: This episode is sponsored by Fidelity Investments. Our goal is to help you feel confident in your investments and make your money work as hard as you do. Gain knowledge without the jargon at fidelity.com/demandmore. Welcome to our show! I often hear that episodes focused on career advancement resonate most with you, including topics like negotiating raises and benefits. I'm thrilled to welcome Tracy Keogh, who leads HR at HP.

Tracy Keogh: Thank you, Jean! I'm excited to be here.

Jean Chatzky: You have an impressive career path. Can you share how you got to where you are?

Tracy Keogh: I began as a hospital administrator, then pursued an MBA at Harvard. I transitioned into management consulting, then shifted to HR, where I discovered my passion lies in people management.

Jean Chatzky: You're a skilled negotiator. Many women shy away from it. Studies show that negotiating can lead to salaries that are 7-8% higher.

Tracy Keogh: Absolutely. Over time, this can significantly impact retirement and quality of life. I was fortunate to learn negotiation tactics in business school and applied them in every job. This knowledge should be accessible to all women.

Tracy Keogh: I've coached several senior women in tech negotiations, which led to substantial pay increases. Realizing that even top professionals struggle with negotiation highlights the need for broader education on this topic.

Jean Chatzky: Let's cover some key points. What exactly is a term sheet?

Tracy Keogh: A term sheet should outline your current and expected salary, titles, bonuses, vacation days, retirement plans, and additional benefits. This comprehensive document helps you understand your worth.

Jean Chatzky: It's clear that detailing your compensation is vital. How does this apply across industries?

Tracy Keogh: While specifics may vary, fundamental aspects like salary, bonuses, and equity remain consistent. Research your industry standards and consult trusted sources.

Tracy Keogh: If you miss an annual review cycle, request an off-cycle review in six months to discuss salary adjustments. Always strive for clarity and fairness in negotiations.

Jean Chatzky: What should one do if they feel low-balled during negotiations?

Tracy Keogh: If an offer feels inadequate, it's a sign to reconsider the company. Initial offers typically allow for negotiation, so approach them thoughtfully.

Jean Chatzky: Let's explore ongoing negotiations after securing a job. What's your advice?

Tracy Keogh: Always have your agreements reviewed by a lawyer, especially in senior roles. Protect yourself and ensure all terms are documented to avoid future misunderstandings.

Jean Chatzky: This advice applies to all employees, regardless of their position. Regularly review benefits and retirement plans to maximize your compensation.

Tracy Keogh: Companies value longevity, which can translate into financial benefits over time. Always negotiate for raises, especially during promotion cycles.

Tracy Keogh: Seek sponsors within your organization who can advocate for you during promotion discussions. This support can significantly impact your career trajectory.

Tracy Keogh: Don't hesitate to express your ambition. Letting others know your career goals opens doors for opportunities you may not have considered.

Jean Chatzky: Discussing salary can feel uncomfortable. How can we change that narrative?

Tracy Keogh: The conversation around salary is evolving. Sharing experiences with colleagues can demystify compensation discussions and empower individuals to advocate for themselves.

Jean Chatzky: Thank you, Tracy, for these invaluable insights.

Tracy Keogh: Thank you, Jean. Best of luck to everyone.

Jean Chatzky: We'll be back soon with more valuable discussions. Thank you for listening!