Monday, September 20, 1999
Want a hefty raise? Show boss you've earned it
Pay for good performance is growing trend
If you're counting on a hefty raise just because a new year is around the bend, don't.
Work real hard, though, and show how your performance helped your company meet its business goals, and you might get the big bucks.
The average salary increase next year is not huge, according to the folks at Hewitt Associates, a management consulting firm that asked some 1,100 employers what they had planned.
Their survey found that salaried exempt employees can expect a 4.2 percent average salary increase, salaried nonexempt can look for 4.1 percent, nonunion hourly workers can expect 3.9 percent and executives should plan on a 4.4 percent average increase.
Surprised that pay-for-performance rules?
You haven't been paying attention — or more likely, didn't want to accept it. It's been the growing trend for years. In fact, 70 percent of the employers surveyed said they offer at least one variable pay plan (where you earn your increase by your better-than-average performance). That's up from just 47 percent in 1990.
It's great for the company since it eliminates fixed costs through salary increases. The variable pay plans pay out awards as business goals are met. It's good for you, because you get to share in your company's success.
Having said that, if you're in a field that's so hot companies can't find enough of the likes of you (such as information technology), it's another story. With demand high and supply low, these employees can expect to be wooed and kept with significant salary increases and bonuses.
According to Hewitt, other areas in which employers are having diffi culty attracting and retaining employees include engineering, finance, sales and marketing.
If you're the average Joe, consider the advice I offered back in 1996, in my book, Interview Strategies That Will Get You the Job You Want. Negotiate a better arrangement — even if your company doesn't offer it:
• Talk to your employer about incentive pay. You can make an extra 10 to 30 percent of your salary if you perform big, and it maximizes your value in your field.
What projects are key to your company? Find out what your department and business goals are and ex plore a pay-for-performance arrangement tied to those.
• Consider a bonus tied to your company performance. See if you can develop a plan that ties your bonus to profit or to the performance of your division or of the entire company.
• Look for other ways to increase your value. Do you have unusual skills? Can you do the job of two? This makes you worth more money.
You really have the opportunity to negotiate this when you're interviewing for a new position — even if a prospective employer doesn't offer such plans.
In a poll conducted by Society for Human Resource Management and careers.wsj.com, 82 percent of human resource professionals said they expect to receive counteroffers for salary and benefits.
Of that group, 92 percent think salaries are negotiable.
Dear Andrea:
I have a B.S. in accounting, but for the last three years have been a Mr. Mom. I would like to start a career in the auditing part of accounting, but have no experience. Can you give me advice on getting back into the job market? — K.P. in Ohio
Dear K.P.:
You say you have no experience, but want to get back into the job market, which implies you have some experience. So, even if it was three years ago, don't negate it.
You've got the one thing most public accounting and business firms require — a bachelor's degree in this or a related field. They'll expect you to be familiar with computers and their applications in accounting and internal auditing. If you're not, get training.
According to The Big Book of Jobs, expertise in specialized areas such as international business, specific industries or current legislation can be helpful in landing certain auditing jobs. Consider getting initial experience working for the government.
As the economy and international competition grows, more accountants and auditors will be needed to set up new businesses' books, prepare taxes and give management advice. As businesses grow, requirements and legislation will get more complex. Your work will change too, probably taking on a bigger advisory role. Management will need internal auditors to develop new ways to discover and eliminate waste and fraud.
So think about the path you want to create for yourself.
Check with the Institute of Internal Auditors and Information Systems Audit and Control Association, which gives certifications. It's something to work toward that can make you more valuable and keep you updated in your field.
Career consultant Andrea Kay's radio show is broadcast 2-3 p.m. Sundays on WKRC-AM (550 kHz). Send questions to her at Box 6834, Cincinnati 45206; fax (606) 781-2228. E-mail: askandrea@fuse.net.
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Want a hefty raise? Show boss you've earned it
