Negotiating - High Pay May End Career
Did you negotiate a great pay scale when you got your last job?
Has faithfulness to a single career employer been rewarded with higher pay?
Is your pay higher than that of your counterparts?
Despite what many employees may way to believe, the USA Today reports that an individual's pay is apparently the chief motive in reducing payroll expense. Their research showed that those on the higher end of the pay scale are more vulnerable than those at the lower end as "pyramid" leaders fight to keep head-count more frequently than talent. It appears that management leaders tend to feel their leadership abilities can make up for the lost talent while retaining a high head count that can be used to hire new talent at a later date.
The thinking is highly flawed as leadership predominantly knows the how-to of the job and some strategic thinking of their discipline but come up short in fine-tuning the skills required to extract the talent on others. The economical condition that caused them to need the downsizing is the same economic condition that prevents them from gaining the skills they need to overcome the lost worker talent.
The displaced workers face difficulty in finding new employment unless they are willing to take a cut in their most recent pay. Marc Lewis, President of Morgan Howard Executive Search, says laid-off professionals who earned $75,000 to $125,000 may have little chance of duplicating their salaries.
The USA Today recommends some very bad advice. They recommend that workers who see signs of corporate expense reduction speak with their supervisor about their concerns for company and to confirm their loyalty. According to the USA Today "you may even want to express willingness to temporarily adjust your salary if need be."
This extremely poor advice assumes that pay is the only deciding factor in the lay-off decision. Although they are correct in identifying that salary levels are an early ranking method, when the final cuts are made executives tend to overlook the pay scale if they see certain qualities within the individual. Our research has shown that there are 8 aspects of an employee that can overcome any other consideration when the time comes to downsize. These include communication, attitude, and team-building among others.
Connie Podesta, author of "How to Be the Person Successful Companies Fight to Keep", says her research shows that for every employee their are 11 other people willing to do their job for less pay. In these times, do you want to take that risk?
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