Dave Ramsey says: Study up on compensation for promotion
May 12, 2020, 11:30 AM
I’ve always made good money at my job, but recently I was offered a promotion to a salaried manager’s position.
The hours and pay would be much better, and I already know the approximate pay range.
Do you have any tips for negotiating salary in a situation like this?
Congratulations on your move up! I’m sure you worked hard and deserve the promotion and recognition.
There are a couple of measuring sticks you can use when determining something like this.
One is a quick and simple approach associated with the revenue you bring in. It’s a nice, quantifiable reference point that appeals to a lot of supervisors and business owners.
The second thing you could do is research a few reputable career websites, and develop a short but detailed compensation study based on comparable positions in your area and those similar to your location.
Honestly though, if I had a valued and respected member of my team moving up from hourly to salaried, we’d have more of a give-and-take discussion and examination of the situation rather than a negotiation.
Yeah, in your position I’d create a few well-researched compensation studies.
Give them to your bosses, and talk with them.
I know I would be impressed by that, and depending on the size of the company, they may not have done a lot of work figuring it out.
In a way, it’s kind of like deciding what to ask for when you sell a car.
You try to appraise it for what it’s worth in the marketplace to other people. That leads to a discussion.
You’re not telling them what to do or presenting an ultimatum, you’re providing information and conducting a dialogue in a professional and respectful way.
Good luck, Natalie!