Q & A Table of Contents
I Survived A Division Closing, But It May Reduce My Income
From: Elinor, Folsom, California
Question: My company is closing down one of our sales divisions and is transferring me over to another sales division. My commission opportunities at the new sales division will be much lower than at my current division.
I have been with the company for 7 months and they have promised a raise several times, first at the 6 month review and then at my 1 year anniversary. (none so far)
The change will be effective as of tomorrow. How do I put across the fact to them that I should receive a higher salary now, before my one year anniversary, due to the lower commission rates?
How do I ensure that there will be a raise in addition to that at my 1 year anniversary?
I have expressed my gratitude to the COO for not simply letting my whole team go but rather transferring us within the organization. At the same time I'd like a higher compensation, without stepping on their toes and coming across as ungrateful. Any advice?
Response: I hate to answer a question with a question -- but -- how come you did not get a raise at the end of your first six months? And there's another question: If your income depends on commissions, is the raise you are concerned about a draw against commissions or is it a base salary which can be augmented by commission if your sales exceed a certain amount?
Your answers to those questions could be the beginning of the development of your approach to the company's management as you attempt to increase your pay.
First: if they made you a promise of an increase after six months, and if you relied on that promise, you have every reason to indicate your disappointment and concern. If they broke the six-month promise, how can they convince you that the one-year raise will really happen?
You are not stepping on toes when you ask about the dependability of delivery on promises; it is a question of whether you can depend on the word of the decision-makers.
Second: is the new division one that pays a lower percentage commission? is the average sale of a smaller size than in your prior division? does the average sales person make a smaller number of sales because of the nature of the product or industry in the new division?
Once you have addressed these issues, you can do the arithmetic to calculate the likely financial impact of your transfer on your income. You should also do a quick survey of alternative jobs with other companies in your area: look at comparable pay, whether there is a demand for folks with your skills, etc. That will give you an idea of how badly your company needs you and, conversely, how badly you need your job. Having a sense of your relative power will help you make common sense decisions about your negotiation strategy.
If the job market is weakening in your area or your particular industry, perhaps just making sure that your company will keep its promises is the best you can hope for. If the market situation is strong, then you are bargaining with more power.
Your company should not feel that you are stepping on toes or being obnoxious; you have legitimate interests in the rewards they offer for your efforts in their behalf. If you don't speak up on the issues of initial importance, then when it comes to the big things, they could use a bulldozer on you.
Good luck with this process.
Steve
| 
