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Hi All,

BLUF: Is a 5% increase in compensation standard for adding six DR and more global travel?

Good news! I have been offered a promotion that has a global scope, more impact, six more DRs, and championing needed change in the company. However, the increase in base salary is disappointing considering the increase in responsibility and travel.

What is a good rule of thumb for a salary increase when offering (and accepting) a promotion? I had thought 10-15%, but that may be outdated and a touch greedy in this environment. In MT parlance, I am going from manager to director.

I have a meeting scheduled with my VP tomorrow to discuss and want to be sure that I am not being unreasonable. Any coaching about how to approach this topic with him would also be appreciated.

Thanks everyone. I look forward to your advice.

All the best.

jhack's picture

These things vary a lot. There is no rule of thumb. Where I work, there is no specific pay raise associated with promotions - you just move into a new range and can grow higher as you perform. There was an interesting discussion about whether it's OK for a direct to be paid more than the boss:

http://www.manager-tools.com/forums/viewtopic.php?t=1771

Not an answer to your question, but perhaps a new way of looking at compensation issues. Many would consider the travel to be a perk.

Putting aside your expectations, do you like the role and can you pay the bills? If so, great.

And....Congratulations on the promotion!

John

mikehansen's picture

Congrats on the promotion!

5% is a standard bump where I work.

I would not make waves about it now. Kick butt in your new opportunity for a year or so and approach it from a position of proven strength. I would not take the chance of tainting your new gig with a push for more coin now.

It does not matter what you make in the next 12 months, it matters what you will be able to contribute and thus earn in 5+ years. If you are a rising star, you will be underpaid for quite some time. Have faith that these things will catch up with you in time.

Hope that helps!
-Mike

ramiska's picture

Congrats.

I agree that you should consider long-term gains more than short-term gains. It's the marketplace at work. Is it enough for you to take the job? If so, the price is right.

BJ_Marshall's picture

Congrats!

It sounds like you're excited about the opportunity, so that's key in my book. If you really need to know whether 5% is standard fare, perhaps you can talk to someone you trust in HR and find out whether your compensation is on par with others with similar responsibilities.

Cheers,
BJ