Q & A Table of Contents
Is This Good News or Bad News?
From: Nick, New South Wales, Australia
Question: I have been offered a move from award-based employment to a
contract and a $5000 payrise.
The contract is supposed to keep pace with the award and if it varies make
up for that variation within the payrise.
My sums (I now have to look after health insurance and other benefits..)
show these costs amount to about $2000 and counting so my actual payrise is
now only $3000 and declining. My new position also calls on new computer
skills (I'm a journalist/PC tech). How do I best show the erosion of the
payrise and the worth of my new skills?...Thank you
Response: From your description it sounds as if your company is trying to
reduce its costs but adding the sugar-coating of a short-term pay increase.
They are offering you more cash, but increasing your financial obligations
for healthcare, vacations, etc.
You have done a good initial job of figuring out the sums, how much you gain
and how much the gain will cost you. Now the question is, what do you do
with that information?
The first thing to ask yourself is: what incentive(s) can the company offer
that will make the proposed change in your compensation package attractive?
For example, can the company buy better health insurance for less money? Is
the company trying to 'unload' its health insurance responsibility because
there are employees who are expensive to insure? In other words, you may
want to investigate the real reasons behind the proposed changes.
Asking good questions, and listening carefully to the answers may provide
you with ideas for your next steps. It would make sense to make a series of
assumptions: if they answer question A with answer A, I'll respond one way.
If they give answer B, my response will be something else. . . In other
words, don't lock yourself in by assuming that certain things are true and
basing your responses on those assumptions. Use the assumption process to
outline a series of flexible responses to the variety of information they
may reveal in answer to your questions.
On the whole, the important thing is to focus on how much freedom you have:
could you find a better job someplace else? Do they need you enough to be
open to significant modifications in the changed compensation and
responsibility package they are offering you? If they want you to learn new
skills, how are they going to compensate you for your time, for the lost
business opportunities that may result from having to spend time away from
your primary work? If they are offering you '$5000' with your existing
skill set, does that mean they'll offer you, say '$10,000' once your skills
have been improved? Will you get a better parking space, more choice
regarding holiday time, more flexible work hours?
What do you want? Why do you want it? And how can the company package your
new compensation situation to respond to those objectives?
The company has made a proposal to you. That must mean that one or more
human beings have communicated with you -- and presumably are awaiting your
response. Show them on paper the sums you have done. Ask them how the
changes will be beneficial to you? You have to sell yourself -- but they
have to sell the changed situation.
I wish you good luck.
Steve
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