Dear Annie:
I've
been working at an investment firm for over 10 years now. I came in at
a very low level, just to get a foot in the door, but eventually moved
up to a portfolio-manager position and am now director of marketing. My
problem is, even though my salary has doubled over the past decade, I
started out so cheap that my pay is still way below what people with my
job are earning elsewhere. It's also much less than I'm actually worth
to the firm, based on my performance. The CEO makes all the pay
decisions here, and I know that if I ask for a raise, he'll point to
how much my compensation has already increased. Another hurdle is that
he comes from a sales background and is very skilled at talking people
into (or out of) things. Would I be crazy to ask for more money? He has
fired people in the past just for asking.
-- Because I'm Worth It
Dear BIWI:
He's fired
people just for asking? Wow. Well, he's no doubt counting on that to
discourage others, such as yourself, from approaching him on the
subject. But it obviously bugs you that you're not making what you're
worth, so talk to him anyway. You need to go armed with a proposal
based on hard facts. Write up a brief memo that succinctly spells out
1) the data you've collected on what your peers at other firms earn and
any other supporting facts you can muster, such as salary ranges
mentioned in ads for jobs similar to yours; 2) any and all evidence of
how your performance contributes to your firm's sales and profits.
The
more facts you have at your fingertips, the harder it will be for your
CEO to "sales talk" you. Then, state a specific request: What kind of
raise would satisfy you? A 5% raise or a 10% one? Another point: Is
there anything -- stock options, extra paid vacation, a company car -- you
would be willing to accept instead of a salary hike, or along with a
smaller raise than you're seeking? If so, that would give both you and
your CEO a bit of room to negotiate.
One question: Have you
given much thought to what you'll do if he fires you? Given his track
record, it might be smart to figure that out now. But don't be
intimidated out of asking. If this company really will not pay you what
you're worth, you may be better off elsewhere.
Dear Annie:
Now that the job market is finally starting to pick up a little, I've
had a couple of offers from companies where I had interviewed two or
three years ago. But what I'd really like is to stay at the company
where I work now and go after a higher-level finance-manager position
that has opened up. I happen to know that several outside candidates
are also competing for the job. Is there an "insider advantage"? What
are my chances?
-- The Insider
Dear TI:
Interestingly, it seems
there is more of an "insider advantage" than there was five years ago.
A new study by Development Dimensions International (DDI) (http://www.ddiworld.com)
says that 40% of U.S. managers are planning to increase hiring this
year. In 2004, more than half -- 53% -- of management positions were filled
from within, up from 44% in 1999. Scott Erker, a DDI vice president,
expects that trend to continue or even accelerate. "Last year's
increase represents a realization that there is untapped talent in
organizations," he says. "Companies also see providing opportunities
(for current employees) as a retention strategy, which has the added
benefit of placing someone who's already familiar with the
organization."
So, assuming your qualifications are roughly
equal to the outsiders', your chances are probably pretty good. One
tip: When applying for the job, there's no need to mention the offers
you've received from other companies. You want to be promoted because
you're the best person for the job, not because you threatened to quit
if you didn't get it.
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