Dear Evil HR Lady,
About a year ago I finished my MBA. While working on my MBA, I had imagined that there would be plenty of opportunities when I graduated. Unfortunately even with an advanced degree, my two years in finance are not enough to qualify me for advanced positions. My current employer gave me a great retention bonus, yet no raise. Senior management told me that I do an outstanding job, and that they do not want to lose me. My current salary is only a couple of thousand dollars more than when I started with the company and is significantly less than what my current position was advertised for.
I get the bonus in December and am not sure that they are going to offer me the salary I have in mind. I am wondering if you can give me some tips for negotiating. Also should I be looking at other jobs so that I have firm counter offers to come back to them with? My student loans are all due and I cannot afford to pay those and pay all of my other monthly bills like my mortgage and car payment.
Sometimes companies have policies that shoot themselves in the foot. They like you–enough that they’ve said they don’t want to lose you. But, they aren’t paying you what they would pay an unknown replacement. Hmmm, perhaps they like you because you’re smart, dedicated, have a sense of loyalty to the company and are cheap.
Yeah, it’s true. Companies sometimes love their underpaid employees. They are banking on your guilt and sense of obligation to keep you from leaving. I swear, some people would rather divorce a faithful, wonderful spouse of 20 years over socks on the floor than quit a company that has underpaid and under-appreciated them for 3 years. If you’re not being treated right, you may have to leave for better treatment.
Did your company pay any part of your MBA? If so, how long do you have to work for them without having to repay the cost of tuition? How much money would you owe if you left? Don’t let yourself be held hostage at a salary $25,000 less per year than another company would pay you because of a $10,000 repayment required if you quit. If they did not pay part of your tuition, you don’t have to consider that in your decision calculus.
There are more reasons than salary to stay at a job. For one, in this economy, any job is a blessing and there are people who would love to take your place. Work-life balance is another huge one. Sure, you can make more money somewhere else, but are they going to let you work one day a week from home? Sometimes location really gets you–if you live in a less populated area, switching jobs can mean moving, and you don’t want to uproot everything for a strange new town.
You want to stay. You just want to be recognized for your new skills. Here are some things to think about.
1. What is it that you can do now that you couldn’t do before your MBA? Note that I said “do” not “know.” You may know a ton more, but does that translate into things that are helping your company? For instance, you may have studied complex international finance policies in school, but if your company deals with nothing more international than ordering Mexican food for lunch, it’s not helpful to them.
2. Why would they list a vacancy at a higher salary then you are making? What? Why am I asking you that. How in the heck should you know? Well, you need to know. Go ask. Ask straight out what it is that you are not doing that they expected someone in this position to do. Expect some sputtering. It may well be a case of stupid policy, such as not giving an existing employee more than a 10% increase.
3. Could you really make more money elsewhere? I’m sure you’re fabulous and all that, but could you really make more elsewhere? You said you only have 2 years of finance experience plus the MBA. The market is flooded now, so they may well be paying you precisely what you’re worth to them. I realize this is an unpleasant thought, and you have student loans and a mortgage and a Hostess Cupcake addiction (oh wait, that’s me) to pay for, but it’s not the job of a company to pay you what you need to live your chosen lifestyle. It’s their job to pay you in accordance with the amount you can help the business.
4. Have you asked directly for a raise? You say you got a fabulous retention bonus. Super. Your bosses may think, “Gee, weren’t we generous with that retention bonus?” and have no plans to give you a raise. They may not know that you think you deserve one. After all, they may feel like they’ve adequately compensated you for your increased skills. You need to spell it out for them.
5. Show that you are more valuable. Make a list of all the functions you do, along with a description of how you do them. If you have the chance to write a self-appraisal, now is the time to do so. Make it extremely obvious that you are underpaid. Make it extremely obvious that you are fabulous. This is not the time to be modest. Save that for dinner with the inlaws.
6. Be willing to move on. It’s a sad truth, but sometimes companies just won’t ever appreciate you until someone else wants you. Stupid, I know. But, if you’ve talked repeatedly about your undying devotion, or how you can never leave because you live across the street, they just won’t see any reason to increase your salary.
Now, on another MBA related note, as you’ve learned, 2 years experience + MBA does not equal financial goldmine. In my opinion, you need a bit more experience in order to truly take advantage of the MBA degree–and knowledge. You don’t even know what questions you should be asking at the beginning of your career. (And since you have the degree and two years of experience, I’m guessing that they were gained simultaneously, which meant you were fresh out of undergrad when you started the MBA.)
I think MBAs are great (although I admit i don’t have one), but without underlying experience, they aren’t worth nearly as much. The burden of proof that you are more valuable now than you would be without the degree lies firmly on you. Demonstrate and ask for a raise.
