Q & A Table of Contents
When Times Were Tough They Made Big Promises; Business Is Good, But Their Promises Aren't
From: Sidarth, Delhi, India
Question: I am struck in negotiating on my salary and incentive in recent performance appraisal.
Earlier when business was not good I was offered lucrative incentives -- but as business has grown to a very high extent, management is indicating it plans to reduce the incentive part of our original agreement.
I didn't negotiate hard on the initial salary because the incentives were good. Can you suggest how to break this deadlock?
Response: If your employment agreement is on paper, clearly that gives you more bargaining strength than if the agreement was oral. Does the situation you describe also apply to other employees in similar jobs or with similar experience in your company? Is there an issue of unfair treatment between you and others or is the company withholding incentives from everyone?
You need to consider your options: If your cannot reach an acceptable agreement with your current employer, can you find a better job situation someplace else? Are there things other than financial rewards that would satisfy you (better office, more clerical help, increased vacation time, flexible hours, new equipment, improved commuting situation -- employer-paid transportation, free parking space)?
While all of these may be worth considering, it sounds as if the incentives as originally offered were what determined your decision. It could make sense to ask the employer how they would feel in your situation, how they would feel if their policies became known outside the office, how they would feel if you quit. Try to get them to put themselves into your shoes, to see things from your perspective. Do this by asking questions rather than simply telling them your perception and asking whether they agree or disagree.
If the company is holding back on incentives to improve its balance sheet, and if you feel this is indeed likely to enhance profitability and the company's future, perhaps you can accept your incentives in shares of stock in the company rather than an immediate salary increase. Or perhaps you can reorganize the incentive plan as follows: for each increment by which the company's profit increases, they should agree to pay you a specified amount. While this does not solve your short-term problem, it may offer a face-saving way for the company to reward your contributions to its success.
Good luck,
Steve
| 
