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First time manager paid less than direct reports | Fairygodboss
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M Elizabeth Ingram
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514
HR, administration, & benefits at work; mom of 2
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Depending on what your direct reports do (such as sales mentioned above) and how long they've been with the company, this isn't uncommon. When I was promoted internally 3 years ago, I had a long time employee that I supervised who made more than I did. However, over the past 3 years, I've earned more. I still make less than some of my peers because they're in sales positions. Be sure to look at how much income/savings, you're creating for the company to justify your value if you ask for a raise. Doing a good job is important, but what's your impact on the company bottom line?
Jackie Ghedine
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4.4k
Coach for Gen X Women | Jack Russell of Humans
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You're a bargain! It is extremely common practice to make less when you are promoted internally than moving from organization to organization and unfortunately, there are some types of jobs where managers make less (sales for example). Regardless, you know your worth, what you've accomplished and how you've impacted the bottom line. I would get all your statistics together, salary range for your job, what you've accomplished, the pay of your direct reports and make a case for how YOU contribute to the organization and why you deserve to be compensated accordingly. Good luck!
Jennifer A
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895
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THIS but I would not add your direct reports pay into the equation. This isn't about your direct reports. This is about your value to the company AND what you are providing as a value add. If you do need to mention it be very, very tactful. Consider that you are not threating them in any way but rather making an observation that there is an inequality and that you believe they didn't know about it. In this way they can fix it.
Anonymous
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Thanks For your advice!
Stephanie Burns
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15
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Good question. It doesn’t have to be an ultimatum. It’s simply you discussing what you think you’re worth based on the market, your accomplishments, etc. And remember they may say no - or offer less - but you have a better chance to negotiate for a gradual raise over time - e.g., another bump in 6 months - if they understand your target range. And even if you only get some of what you request, it may still be more than they would’ve offered. As an alternative, you could wait to see what they offer and then counter with your own figure. It’s likely to be a negotiation no matter what. But yes, I think it’s wise to have a figure prepared.
Stephanie Burns
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I agree with the person above - build your case for why you've earned a raise, and present a number you think is fair. You're more likely to succeed if you can demonstrate you've put considerable thought into what you deserve and why you deserve it. Make a list of everything you've accomplished since you were promoted and be prepared discuss in detail. You can also reference the fact that your initial offer was lower-than-average and your current compensation is lower than a couple of your direct reports. It should be clear your objective is to bring your salary to a fair and appropriate level. Remember - there may have been other ('more qualified') candidates, but they chose you - this is your chance to prove they chose right! (There are some other resources out there, like Know Your Value by Mika Brzezinski, that might help you prepare for the conversation.) Good luck!
Anonymous
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Thanks for your thorough advice! Do you think presenting a specific number is appropriate? I have negotiated for a “title promotion” (I.e. to senior engineer) before and the salary bump came with it but have never negotiated for increased salary directly unless I was going to a new company. How would you avoid it being perceived as an ultimatum or “threat” that your contribution would decrease if they did not give it to you?
Anonymous
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I would say to definitely ask for a raise based on your accomplishments and progress as said above. I also would not bring up, nor worry about, the contract worker. Often contract workers are paid more because they're not getting benefits of any kind and have lots of risk and insurance that they have to carry and pay for themselves. But the two other employees who are paid more is certainly a reason to ask for more!
Anonymous
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I agree and thought the same regarding the contract worker. Thanks for your advice!
Anonymous
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Does your bonus and stock option, in fact, make up for the salary difference? I was in this situation before and I asked for a raise after I was doing the role for several months. It's quite a gut punch to know that someone who performs poorly makes more than you do. I would make the case for a raise, highlighting your accomplishments and the progress your team has made.
Anonymous
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Thanks for your reply. I like your advice and like that you made your case out of cycle rather than waiting a whole year! The bonus and stock is higher than my previous position and honestly much higher than I expected. However, comparing total compensation, I am still earning less than the other two employees (although the gap shrinks quite a bit). My total compensation is 10% less than my highest paid direct report (whereas just comparing base salary, I am earning 25% less!).
User edited comment on 11/19/20 at 10PM UTC