Q & A Table of Contents
They're Keeping Me On, But Offering No Incentives
From: Todd, San Francisco
Question: I am an account executive at a weekly newspaper in San Francisco. Recently, the man who hired me left the company, as have a slew of other employees. It feels like the wheels are falling off. At the same time, they've offered me a promotion which is more or less a lowball offer. Wondering if you can shed some light on some of my concerns:
Currently, I make 8% commission with an opportunity to get to 10% upon meeting certain sales criteria. There has been no discussion as far as increasing this percentage and yet other Senior Account Executives often make 10-12%. Because I handle the music business at the paper and stepped into an established desk, my commission rate is lower. This I understood coming in, but I have grown the desk significantly. While not thrilled with the deal I signed a year ago, this is my opportunity to renegotiate after proving myself.
They have offered me a raise in base pay (which I earn when not exceeding this amount in commissions) of $5,000. This is a slap in the face. Furthermore, they have assigned a LARGE account to my assistant and I and will not pay commission on it, only bonuses. Some of this account is a trade account - for concert tickets, and this is understood. However, I believe that the rate with this company can be renegotiated to allow for commissions.
As I write this - I realize what a silly situation I'm in. I had a good year last year, but considering recent events at the paper and the departure of my boss (who brought me in - and was also the last link to the music business after me), I am increasingly frustrated.
This is a company who doesn't know how to take care of their employees as evidenced by high turnover. I would like to stay in terms of the marketplace and the specificity of what I do - it's of great interest to me.
What is a good raise amount percentage-wise when advancing from an account executive position to a Senior Account Executive? Furthermore, my duties now include a second sister paper, and I have grown this business considerably as well, for a smaller commission percentage. Basically, they need to compensate me better in every phase, but how do I explain this to them without negotiations getting nasty?
Response: Raises for promotions vary considerably by the type of business, company size, location, seniority, and many other factors. You should research what other folks in similar positions get paid to get a sense of what would be fair in your situation.
As you describe your situation, it sounds as if your current employer really needs you. The question is whether they need you more than you need them. You should explore alternative employment -- not necessarily committing yourself to quitting your present job or present profession -- but to do some comparison shopping. You may discover that your experience selling advertising space may make you an ideal employee for an advertising agency looking for a media buyer.
What you have to do is develop a clearer understanding of your BATNA -- your Best Alternative To a Negotiated Agreement. BATNA is a measure of the balance of power in a negotiation. Figure out how to strengthen your BATNA (find alternative employment, threaten to quit and take accounts with you, demonstrate your value with facts and figures) as well as how to weaken the BATNA of your employer (find out how much they think they need you, etc.). This will help you walk into the negotiation better prepared.
You indicate that you are offended by the offer that is on the table and that you have not been terribly happy with the employment agreement under which you have been working thus far. There is nothing wrong in letting your negotiation partner (the boss in this case) know how you feel. For example if you feel insulted by a lowball offer, if you don't say something explicit it makes no sense to assume that other parties will know how you feel. If they wanted to make a lowball offer and you tell them it is insulting it is far more effective than going off into a corner and sucking your thumb.
Negotiation is supposed to be a process by which people exchange things of value in a civilized manner. Don't anticipate nastiness -- and if it occurs don't let your emotions control you. Control your emotions, take the high road, and be honest about your feelings and your worth. If you accept something that is fundamentally unacceptable your resultant grumpiness will hurt you more than it will hurt anyone else.
Steve
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