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Business question? with a small explanation first

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Business question? with a small explanation first

Old 02-04-2018, 06:58 PM
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Default Business question? with a small explanation first

I recently received, out of nowhere a large promotion. In doing so several longtime, high ranking people were displaced.

The company, re-organized to combine two parts, that while in the end did the same thing, operated in two different manners. My position, overnight became that leader of a blended portion. I managed 6.5 million with 10 employees, now it's 25.5 million with 22 employees. To say it was a step up in responsibility is an understatement.

Here's my thinking. I know just by the two people I displaced they'll collectively save somewhere in the neighborhood of 200K + in year end bonuses. Pay about the same.

Now, while I make good money, I feel I'm getting the shorter end of the stick for the 19.5% pay raise I got. They're re-structuring our bonus system too. SO that's a huge question too.

After digesting all of this. AM I being ungrateful, by putting the facts in front of my new boss, and asking for a 6 month evaluation of my performance. Then asking for my raise to be re-evaluated at the end ?

Or should I be grateful I got any raise and keep pushing forward ?
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Old 02-04-2018, 07:09 PM
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Time for recon. Wait and watch. Be mindful you’re now that top guy. Will you potentially have to answer for your predecessor? Keep an open mind and eyes.
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Old 02-04-2018, 07:23 PM
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The business decision isn't necessarily based on pay scale alone. Sometimes the organizational improvement is worth it at even money. Regardless, you can always ask for more money......but consider how you proceed once they answer that (yes or no).
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Old 02-04-2018, 07:45 PM
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Play the long game. Wait and watch. You are making some assumptions regarding their savings, but you may not have the full picture. Once you know exactly how much you are worth to the company you can ask for another raise.
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Old 02-04-2018, 08:08 PM
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Originally Posted by G8RDave View Post
Play the long game. Wait and watch. You are making some assumptions regarding their savings, but you may not have the full picture. Once you know exactly how much you are worth to the company you can ask for another raise.
This and - what are the alternatives? If you weren’t looking and this came out of nowhere as stated, why not enjoy the extra challenge, money and perks that go with it instead of focusing on a negative. Isn’t this win-win (you and your employer)?
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Old 02-04-2018, 08:53 PM
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I would not!
Your bosses just trimmed some fat ,running in now demanding more $ may trigger some more trimming.
Hold out ,work hard and show them you deserve more.
Of course I am self employed so what do I know.
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Old 02-04-2018, 09:28 PM
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Unless you have the total financial picture, don't ask for more based on the job change. Sure, you can ask for more based on performance, etc.

The businesses could of been losing their asses and after restructuring they are hoping to do better...who knows.
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Old 02-04-2018, 09:35 PM
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Make sure you can do the job and exceed expectations before you start asking for more money.
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Old 02-04-2018, 09:49 PM
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First of all congratulation!

Always be grateful you have a good job, that keeps your head on straight. Nothing is more irritating that someone who takes their employer for granted...

I know in my previous corporate position as a policy we didn't give anybody more than a 20% increase per year so that may be a policy decision. If so outperform and ask for the same increase next year...

What was the salary of the person holding the position previously or a similar position or competitors? Or is this a completely new role?

Is the position "just" an increase in scope or also new responsibility such as personal liabilities et cetera?
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Old 02-05-2018, 04:35 AM
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Every post prior to this post is spot on.
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Old 02-05-2018, 05:44 AM
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If the OP expects that his company will pay him the same money as what the two people he replaced were collectively paid, he must be a millennial; because that isn't how it ever works in the real world.
Generally speaking, as a person's role in management increases, the work load doesn't go up in proportion to either the number of people who report to you or the dollar value of the operation.
Without knowing what kind of business it is, unless it is a consulting business with no product costs, $6.5 million in revenue from 10 employees or $25 million from 22 employees isn't very large nor likely extremely profitable.
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Old 02-05-2018, 05:45 AM
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Is this position salery and if so will it require more of your time? Break it down to dollar an hour and don't forget to include bonus. Compare last year with this year and see if it's worth it.
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Old 02-05-2018, 06:04 AM
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Let's see they just got rid of two high paid employees, probably as a cost saving restructuring, and you want to demand more money...
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Old 02-05-2018, 06:53 AM
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Thank you all for the feed back.

I was leaning more towards the not asking, and your feedback gave me the clarity of that. Someone I hold in high regard placed a bug in my ear, and I was just testing the waters with this.


LI32- I was not asking to be paid equal to two people. I was asking if another bump in pay would be too much. To think they would pay me equal to two people would be asinine. I get that work load and people don’t equate to pay scale. I was merely giving more insight into the situation. I, along with every employee know this was a cost savings initiative.


Again, thank you all for your feedback.
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Old 02-05-2018, 07:54 AM
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Originally Posted by 1 McKee View Post
Thank you all for the feed back.

I was leaning more towards the not asking, and your feedback gave me the clarity of that. Someone I hold in high regard placed a bug in my ear, and I was just testing the waters with this.


LI32- I was not asking to be paid equal to two people. I was asking if another bump in pay would be too much. To think they would pay me equal to two people would be asinine. I get that work load and people don’t equate to pay scale. I was merely giving more insight into the situation. I, along with every employee know this was a cost savings initiative.


Again, thank you all for your feedback.
Several things.

How did the person that put the bug in your ear learn the details of your new pay and compensation? If that person learned the details from you, shame on you. People in leadership (such as you) should not discuss their compensation with anyone. The employee's they manage will soon come aware of these things and this presents a large number of possible problems their manager.

Ignore advice placed in your ear by people. How much you make is your employer's and your business. Not the business of other employee's.

I'd be very grateful for the raise and increase in responsibility and show it to the bosses by doing whatever you can to increase performance and productivity. They are not dummies and will be observing how you do. They have the ability to reduce your compensation or seek a different person to your position anytime.
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Old 02-05-2018, 08:50 AM
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[QUOTE=dssmith;11091410]Several things.

How did the person that put the bug in your ear learn the details of your new pay and compensation? If that person learned the details from you, shame on you. People in leadership (such as you) should not discuss their compensation with anyone. The employee's they manage will soon come aware of these things and this presents a large number of possible problems their manager.

Ignore advice placed in your ear by people. How much you make is your employer's and your business. Not the business of other employee's.


The person I speak of, is not an employee, or associated with my business, or any businesses I deal with. This was a person, who has many years in VP roles, and running large businesses. I did not disclose any dollar figures, merely just what I did here.

I don't discuss details of compensation with anyone.
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Old 02-05-2018, 02:44 PM
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Up, up in the organization ... salary & bonus goes up ... then they re-organize and you, as the now top earner is let go and replaced ... what just happened to you and the 2 let go ....will happen again, this time you will be the one replaced .....

25million ... nice margin business... even a keystone business.... could easily make 20% pre tax bottom line .... clear 5million pre tax ....... several of mine do.
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Old 02-06-2018, 04:54 AM
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Originally Posted by LongIslandFisherman View Post
Up, up in the organization ... salary & bonus goes up ... then they re-organize and you, as the now top earner is let go and replaced ... what just happened to you and the 2 let go ....will happen again, this time you will be the one replaced .....

25million ... nice margin business... even a keystone business.... could easily make 20% pre tax bottom line .... clear 5million pre tax ....... several of mine do.
How do you even know what business he’s in? Doubtful it’s retail with those numbers and so few employees.

20% - that’s hilarious. The largest industries in the country don’t come close to that number.

‘Keystone’ - if you’re getting returns like that on several of your businesses, you’re the best kept secret in the retail world. The rest of it is falling to pieces around you.
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Old 02-06-2018, 05:25 AM
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20% used to be the rule of thumb in my industry for promotions or hiring in someone. You got that, so good.

You really should not look at what was, but rather what is. What is the market value of the job your in. What does the competition pay for a newbie in your role. You are a newbie even though you have been in a subordinate role there. Once you prove yourself capable of doing the job, you have assimilated the intangibles, and learned the market value then you can decide if you want to have the discussion.

In this case the intangibles include watching how any other successful VP’s handle the interpersonal and political issues that happen at the senior level. In many cases this is as important if not more so than job specific knowledge. Move slowly and watchfully.
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