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Post Info TOPIC: Salary Negotiations - I'm miffed!


Marc Jacobs

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Salary Negotiations - I'm miffed!
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Last August, I started my current job and in salary negotiations, the CEO and I had agreed to a bit of a raise from my current salary (4%), followed by another small raise (4%) based upon a performance review 6 months into my job.

It has now been 6 months.  I asked my boss (the CEO) about how we were going to do the review.  He said "There's good news and there's bad news."  Basically he went on to say that he didn't need to review my performance, and that I was an excellent asset to the company, he really sees me going places, etc etc, basically gave me lots of compliments.  Bad news was that "due to the economy" he just cant spare any money and since sales are down it wouldn't make sense to give me more money "right now".  I asked him "when" and he said he'd give me an answer at the end of the month.  I reminded him that the economy wouldn't quite improve by the end of the month.  He said he had to "figure things out".

I feel really miffed because this is not a raise I am asking for, but a compensation package that was agreed upon and signed prior to my taking this position.  When I left my last job, they offered me a 20% raise on the spot, which I declined for this job.  I am now making less, and even with the small raise, would still be making less.  Also the economy was going down in August and I wonder if he made the agreement just to get me on board, knowing that he would make up some excuse not to go through with it.

I am happy with my current job, wouldn't think of leaving.  However, it makes me wonder about my future with the company.. if I know he won't even pony up to written agreements about compensation, my hopes for raises basically go down the tubes.  It makes me question my respect and integrity for him as well.

I know that in these times I should be thankful for being employed but I feel as though I held up my end of the bargain, he should do the same. 

I was just wondering if you guys had similar experiences... or advice to give me? 

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Chanel

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If it's a written and signed agreement, how can he back out of it? I'm not a law expert and I'm sure some other people could answer this much better than me, but doesn't that make it a little more binding than a verbal agreement?

I'm sorry this happened to you and I hope you can get it worked out.

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Marc Jacobs

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I'm sorry this happens - it happens a lot, if it makes you feel better. You're probably right that the CEO would have looked for an excuse to get out of it, even if it's not in writing. My boyfriend's friend did it to me. (Long story, but he broke both a written contract and a verbal one - it turns out it's common practice in some consulting companies because some things are hard to sue over). So I know how disorienting and crazy-making it is to be deceived like this. 

But honestly, I also know that he's going to freak if you continue to call him on his poor behavior. And if he freaks, he's going to take it out on you. People who are screwing you over hate it when you point it out. He knows what he did. He knows you know what he did (and that is embarrassing to him). What he doesn't know is how big of a pain you're going to be about it. He needs to be reassured, or you'll pay for this in big and small ways until you leave the company. (Please don't everyone get on here and talk about what's reasonable and how the company should act and how I'm being cynical. People who lie aren't reasonable. Pretending they are, or could be, is a recipe for trouble. Period).

Given the economy, your boss is holding all the cards. You're right to be upset, but you're going to need to play along, while getting what you can from the situation, and preventing anything worse from happening. You're not a passenger in your career, you're the driver. Act like it.

I would flip it on him. In an email, if that's not too awkward, tell him that you're happy to defer speaking about the promised compensation while the company is in this position. Reaffirm your devotion to the company, and the team, and give him many compliments. If possible (and I know this sounds silly, but it works) pretend that you had a conversation with him where you were both on the same side and you really appreciated his efforts on your behalf. Discuss this make believe world with fervor, and credibility. "I know how hard you're working to save the company in this troubling time and I'm happy to be part of it...."

It may sound silly, but people are silly. He lied to you. He's going to get away with it because he correctly read the situation and he got lucky with the economy. The best thing you can do right now is get what you can out of the situation.

A job offers three things: 1) Money 2) Experience that leads to a better job 3) Contacts. You're not going to get number 1, so figure out how your boss can give you 2 and 3, and stay on his good side until you get it. You don't have to be his best friend. You don't even have to like him. But you do have to be useful to him, or he'll drop you like a hot potato. This is not the economy to risk it. Play nice and get what you want.

He doesn't know it, but if you knuckle under and take this the right way, he's given you a lot of power. You are the person who put the company first. You are the new employee who came on board and gave it your all! You have a chance to create a narrative here, and I'd use it.

PS - At every opportunity, reference the compliments he paid you, and keep doing this in writing whenever possible. He's not going to disagree with himself, and you want him to think, "I've mentored this promising employee..." Also,  protects you from further sabotage. Especially if it's in writing. 

PS 2 - If you fight him on this, he's going to be more and more entrenched in the position he's already taken - that the company can't spare your promised raise. Letting it go and playing the hero is not just a good tactic for right now - it's also probably the only way that he'd ever reconsider. If you're a super-valuable team player when the economy takes an upturn, he'll have a hard time saying no. Whereas if you're that pain in the butt who crossed him, he's going to drag his feet and keep finding more reasons to reaffirm his initial decision. He's already taken a position: no raise. You're not going to argue him out of it, you have to get him into a position where he's on your side. Does that make sense? 


-- Edited by Dizzy at 18:06, 2009-01-22

-- Edited by Dizzy at 18:11, 2009-01-22

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Marc Jacobs

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An update -

This Friday my boss laid off about half of our NY office and migrated those jobs to others within the company. Considering the layoffs, he explained to me that it just wouldn't "be fair" to give me a raise. I reminded him of the 20% offer that I turned down, he thanked me for making that decision.

He said he wants to reposition me into a role "that will definitely get a raise" - I saw an outline of it, basically he has me as his right-hand-man instead of the VP of Sales. I have a hunch that this is another carrot he's dragging in terms of the raise but given the morale at my job, I cannot complain. I want to take this opportunity to gain the title and the skills to up my value by much more when I move on to the next position.

Thanks for the insight - Dizzy, I can always count on some frank and honest advice :)

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Chanel

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Interesting development, and yeah, it's a carrot.

If you have a signed agreement specifying a 4% raise by X date, I wonder if it would be prudent to go to him to "extend the terms" - you can say "In light of the economy and the layoffs, it would protect you and the company to change the terms of this agreement. Let's put a new date of (three months from now)" or something along those lines.

This would tell him that you know he's breaking your agreement and make it harder for him to keep getting away with it - but you look like the good guy because you're trying to spare the company the nastiness of a broken contract.

Certainly the economy is a convenient excuse but I don't know if it's fair to say that back in August, businesses were able to predict the extent to which they'd be struggling now. So I'm inclined to accept some of his arguments at face value, at least in the short-term.

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