Hints for researching salary information are provided in this article, and various types of alternatives to raises, better known as options and perks, are described.
Job relevancy is important, but personal achievement is better.
1. Your Worth on the Open Market
Before negotiating for a salary increase, it is important to learn what your skills and abilities as a manager are worth in the open market, as well as to your company. One of the best ways to obtain this information is by exchanging salary information with others in similar positions, within and outside the company. Sometimes these peers may not be willing to reveal their own salaries but may volunteer information about the salaries of others. Personnel recruitment agencies are also a good source for determining salary levels as equated to years of experience. Also, many trade periodicals run surveys of salaries. The Bureau of Labor Statistics and even want ads are other good sources of information.
A survey conducted by Compensation and Benefits Review among 35 personnel managers and 234 middle managers from the same industry resulted in different opinions about salary raises. Responses from the personnel managers indicated the use of criteria based on factors other than performance. Middle man-agers, however, preferred pay raises based on performance and were dissatisfied with salary inequities. As a result of the survey, it was concluded that a rewards system for middle managers should be more equitable and incentives given to improve and recognize performance. Another conclusion was that improved managerial performance may help to improve a company's position in relation to the competition.
Now let's look specifically at your market value. A little research on your part will be helpful as a beginning. Your local library may have one or more of the following publications available:
- The Occupational Outlook Handbook, published by the United States Government Printing Office, describes tomorrow's jobs and comments on each with respect to the type of work, location of employment, training requirements, qualifications, advancement, current and future opportunities, and earnings.
- American Almanac of Jobs and Salaries.
- National Survey of Professional, Administrative, Technical, and Clerical Pay, published by the Bureau of Labor Statistics.
- The Encyclopedia of Associations, issued by Gale Research, lists 18,000 professional organizations.
- Trade journals or magazines. (A letter or phone call to a publication may produce pertinent information.)
2. Your Worth to the Company as a Manager
A manager's worth may be considered in terms of performance, peer acceptance, company politics, presentation of self, ability to resolve administrative problems, and skill at handling the pressures of the job. Level of performance may be indicated by how well critical problems are analyzed and solved, whether the manager does more than the job requires, and whether he or she is cooperative, accepts criticism well, and displays motivation. Let's look into some relevant factors.
Accepting responsibility: Failure cannot always be blamed on someone else or attributed to bad luck. When resources and personnel are provided to perform certain functions for a company, a manager must accept responsibility for both good and bad happenings. Mistakes do occur, but a manager should be able to analyze the causes and know how to institute corrective action for present and future problems.
Motivation: A manager may have knowledge, abilities, and skills but lack the motivation to produce. A department with an unmotivated manager is likely to show minimal results.
Self-knowledge: A manager must know his or her strengths and weaknesses. It is important to avoid trying to be what one is not. At the same time a manager must be willing to investigate and apply methods for improving traits and skills that are important for effective performance on the job.
Self-acceptance and acceptance of others: Self-acceptance should not lead to complacency; rather, it means recognizing one's limitations in making improvements. In regard to others, a manager should be sensitive to the needs of fellow managers, subordinates, and superiors. A manager should know how to criticize constructively and should also be able to accept criticism without animosity.
3. How Can I Improve Myself and My Net Worth?
First, let's start thinking about becoming successful and avoiding failure. Minimize your mistakes by keeping a journal of work input versus work output with appropriate dates (i.e., log in receiving dates, due dates, and dates completed). Schedule your workload, allowing enough time for meetings. Include the name of your staff member who has been assigned the work, but make certain the action required is clearly understood.
Second, set up team meetings for interfacing work assignments and for airing gripes. Encourage openness. Listen and share the concerns of your staff. Remember, how well your staff and you personally perform is a reflection of your capability.
Third, make allies, not adversaries, of your colleagues, by improving the exchange of information. However, avoid too much camaraderie; after all, these associates may also be competing for that more-than-average raise.
Fourth, avoid complacency in your workplace. Work to improve your self-confidence, self-worth, and self-esteem. Feeling secure on your job is your responsibility. Thus, never cease educating yourself and keeping your skills up-to-date. Specialization was desirable in the past, but, as a manager, broadening your skills makes you even more desirable. Spend time with those who are one step up from you and your peers.
Make yourself a better leader by assuming more risks, but make sure you can handle them. Rely on your staff to provide experience, additional skills, and brainpower, and learn from them so that your deficiencies will be minimized. Reward your staff with raises-provided, of course, they are well deserved. Show compassion and understanding of their personal problems. Keep your staff informed of the quality of their job performance by using adequate feedback.
4. The Question of Fringe Benefits
When negotiating a raise, a good time to discuss fringe benefits or perks is after you have obtained the highest possible salary increase. Then focus your negotiating skills on getting an improved package of fringe benefits. Remember that benefits come in two primary categories: fixed benefits that usually apply to all employees (e.g., health and pension plans), and flexible benefits that depend on job classification and may include tangibles such as a larger office with better furniture (and that prestigious carpeting!), free medical examinations, extra insurance coverage, relocation expenses, low-interest loans, flexible hours, a company car (for business and sometimes also for personal use), stock options (e.g., the right to purchase company stock at reduced market values), free legal and financial counseling, membership dues for professional associations and consumer price clubs, extra vacation or free time, a savings plan whereby the company may match part of the employee's savings, and a personal computer that may be kept at home or used while traveling.
Even at a junior level, a company benefit plan can add between 20 to 30 percent to one's salary. When considering total salary, you must include benefits such as paid vacations, health, disability and life insurance, stock options, profit sharing, and retirement programs. Interestingly enough, the cost of benefits to a corporation has increased more significantly than basic salaries. If you are advised that raises are limited, some benefits, as described below, may be considered when negotiating a raise:
- a bonus, or a larger one
- additional vacation days or special days off, such as for your birthday or extra holidays
- attendance at workshops, conferences, exhibitions, and seminars that are germane to your field
- company-paid professional dues and subscriptions to trade magazines/newsletters.
Medical insurance costs have become a burden for only one side to handle. Therefore it has become common for both the employee and employer to share the premiums. The choice of health care providers is left to the employee; many select an HMO to keep the cost of premiums more reasonable. A number of companies offer life and disability insurances without cost to the employee but only up to a certain value; above that the employee picks up the additional tab. Retirement plans may consist of two parts: the company-sponsored part wherein only the company contributes, and a 401 (k) plan that allows the employee to contribute funds that are tax deferrable until the individual draws a pension after retirement. The first part of the plan requires an employee to endure a waiting period before being vested and entitled to the funds contributed by the company.
Upon reaching the level of middle management, additional benefits and perks may be either offered or negotiated. These are briefly described in the following list:
- Interest-free loans, which may cover the purchase of a house.
- Bonuses for accepting positions at higher levels of the company.
- Spousal-assistance benefits for company transferees, whereby a company finds a spouse a job in the new location or provides retraining.
- Health-club membership, as a corporate member or under a company-paid sponsorship.
- Financial planning assistance.
- A "golden parachute" in the event of future layoff.
