Friday July 10, 2009
This article appeared in the Evening Standard 7 July 2009
While many firms are freezing salaries, some City firms are back paying out record bonuses. So how should managers tackle the tricky subject of pay?
Now may not be the best time to discuss a pay rise. However, with executive pay rising at its slowest rate for five years, according to the National Management Salary Survey from the Chartered Management Institute, there will be pressure to increase remuneration packages as the economy recovers.
The City is already showing the first Signs of this improvement in remuneration, with Goldman sachs staff in line for a record £430,000 in pay and bonuses per employee and Morgan Stanley employees likely to come close to their average paid out in pre-recession 2007.
So how should executives tackle this Difficult subject?" In the current climate it could make you vulnerable," says David Bryson, director of Negotiation Workshop. "It may be better to wait until autumn in terms of there being better news for the economy, And maybe think about your organisation and wait until they have good news."
Knowing the demand for your role in the market and the level of remuneration is critical he says. Do background research by using salary surveys compiled by professional institutions or recruitment companies for example, the online Robert Walters salary survey (http://www.robertwalters.com).
Jane Sunley, managing director of Learnpurple, suggests: "Speak to recruiters - they will give you a realistic picture and advise whether your bid for an improved package is reasonable.
Glassdoor.com holds more than 5,500 UK salary reports and company reviews posted by employees from companies including UBS. Barclays Capital. PWC and RBS. To access them you just need to post your salary details on the site.
"You need to understand what your colleagues are paid and also what sort of response they got to a request for better pay. If it is negative you might want to reconsider," suggests Bryson. and the amount of hard work you put in. MY reaction was always based on how valuable and useful and effective the person was."
Then you must understand the person you are going to approach. Their character is key and you need to know which buttons to press and which to avoid. Bryson says: "Some people will react favourably to a strong and polite request backed up with facts and a clear rationale. Others would be more responsive to a humble approach based around asking how the situation is.