In last week’s edition of the Ask The Headhunter Newsletter, a reader complained about getting a promotion but only a meager raise. Her VP admitted that if an external candidate had been hired, the offer would have been higher!
Readers lambasted the cold-hearted employer. Could this be handled better? Absolutely, says I.T. industry guru Bob Lewis. “I’ve been on both sides of this situation, and what’s particularly pathetic about the company’s response is that it had a better one that wouldn’t have cost a dime. Here’s what HR and the VP could have said…”
How to Say It: “You’re right that if we hired someone from the outside with the right credentials we’d have had to pay more. That’s one of the reasons we’re promoting you instead of hiring from the outside. Your proven ability is, of course, another important factor.
“With the economy and profit picture as it is, we’re scraping every dime from the expense line we can. We’ve laid people off, frozen salaries, and cut bonuses. So right now isn’t the time we can give you a raise that would take you to the compensation mid-point for your new title.
“What will happen is that you’ll be in a position with a new compensation range and a higher ceiling. For the same level of performance on your annual reviews you’ll receive a higher raise than you’d receive in your current position. So while you won’t see one big raise that gives you the emotionally satisfying bump you’d like (and that we’d like to give you), you’ll definitely do much better financially over the span of a few years than you’d do in your old position.
“I wish we could do better. As things stand, though, we can’t.”
Of course, an approach like that by the employer requires integrity and follow-through. Those raises had better deliver an overall “bump!” But Bob’s point is much bigger. Companies need to pay attention in times like these. Employees expect more than, “That’s the policy!” when news ain’t too good… They expect and deserve an honest effort by their employer to do the right thing.
(Thanks to Bob Lewis for his suggestion! And in a shout-out to Bob, I’d like to remind readers of this blog that Bob is the author of a book that will make you a better employee: Bare Bones Project Management — the project management guide “for the rest of us” who need to keep our work on a leash so it doesn’t eat us up. It ain’t just for project managers…)