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Tuesday, March 30. 2010
Should you be asking for a raise in a down market? That depends, but not on what you may think. The market itself has nothing to do with whether or not you are worthy of a raise. That is simply the answer we give to the 75% of the employees who are undeserving for other reasons – mostly the behavior we have seen from them in challenging times. Your value as an employee is not dependent upon the economic conditions of the time; it is dependent upon the value you bring to the organization, the market value of your services and the return on investment that you deliver both economically and emotionally, today and into the future. All of these factors are within your control, not the economy’s. Even in difficult years, we in HR have a predicted amount of money that we build into the budget for compensation and pay increases. Granted the amount of the budgeted increase may be less in tough times, but is there none the same. We separate out the macro – how we are handling compensation for the entire organization from the micro – how we will use our compensation dollars to turn top talent into top productivity. Individual decisions are made within our realm while organizational decisions are usually made with our consultation by the financial or strategy leadership team and are handed down as budget assumptions. You are attempting to impact the micro level, stay away from editorializing on the macro level or fighting on behalf of employees everywhere – not our realm, don’t need more whining on the topic. When we are deciding how to use our compensation dollars and which requests from your bosses to suggest we fulfill, we look at the following things: • Your current performance – Are we getting are money’s worth for what we are paying you today? If you are just an average performer or have a “what’s in it for me” attitude, probably not. • Your value as a resource on the open market which includes the current demand for you in your current locale and is based upon real data that we collect and update in salary surveys, not your own assessment. • Your potential for future returns for the company - which is your capability to grow and develop, to play a multitude of positions, to succeed the leaders, and willingness to share information and develop others, etc. • Your flight risk – how likely it is that we would lose you and how bad that would hurt the organization. Not because you hoarded knowledge and protected your position (we see that in our HR minds as short-term pain for long term gain) but what we truly couldn’t replace such as your technical skills combined with how great you were in relating to people • Your emotional expense to the organization –beyond your pay and the return on that expense which arises from your skill set – this is how many resources we have to put into your emotional maintenance. How you react to change, do you editorialize on decisions made, do you waste time and energy complaining, do we need to constantly manage your engagement, your buy-in? Bottom line if you are a resilient, personally accountable employee who freely gives their talent to all and is willing to support the organizational direction without drama, you are a great deal. So, when asking for a raise – build your case based on our thinking, not yours, as ultimately your boss will need to get the raise approved through us in HR or through leaders that think in business ROI terms like us. So when thinking about making the ask, remember: • Do not ask for more money to ease your pains during economic tough times and do not base your argument on increased living expenses – cost of living adjustments are so yesterday. Today we pay for return on investment for the value proposition you present to the organization’s income statement and bottom line along with your potential for future returns. You are a resource – albeit a human one. • When thinking of a raise, remember, it is not about the money, it is about the value you provide the organization today and in the future. By the time you are asking for money, your value statement is on the table from your past contributions and their prediction of your future contributions. In the same day with the same shortage of dollars, I have given one employee a 12% raise and denied another employee of any raise at all for both the near and longer term. So don’t even think about consuming the precious resources it will take to get you a raise if your work of building the base of the argument is not done. When making the ask, keep in mind: • It is not about the money and this is not negotiations, or emotional blackmail between two enemies. Take that stance and forget about a raise. No martyrdom approaches about the hard work you have done in the past – we already paid for that on the agreed upon price; no personalizing the conversation – that only proves to us how emotionally expensive you are; no threats to leave us high and dry – we believe that once you threaten no amount of money can truly buy your commitment back and that may just free up some compensation dollars for others more deserving and most importantly, no assigning of motive or character about why we aren’t willing to give you a raise – that just illustrates your lack of personal accountability and ownership of your own results. • Getting a raise is not an event and is not accomplished in a one-time meeting where you make the pitch and wait nervously for a couple of weeks for the answer. Nor is it where you flavor every interaction with your boss with the topic of a raise. Act as a partner, initiating a series of conversations, the first conversations need to be ones in which you are asking sincerely what can you do to add more value or what can you change in your style and approach to be more high impact and low maintenance employee. As you deliver, begin to state your goal of increasing your compensation package and ask how you can help make that possible. If that value proposition is already clearly stated by your performance and potential, then move on to the next set of conversations. • Using the terms compensation package when you ask for a raise leaves options for your employer to tap into multiple budgets with great flexibility, which may get you more disposable income without an actual raise. Examples may include tuition reimbursement, commute dollars, parking reimbursement, car lease, or other reimbursements that can come out of the expense portion of the balance sheet rather than the compensation budget. • If the organization is truly in trouble and dollars are non-existent, suggest some things of value to you that are of little cost to the organization such as more flexibility in your work schedule, the ability to work from home, access to a mentor, greater development opportunities such as attendance at key meetings for learning purposes, or preferred status in being chosen to attend conferences or trade shows on behalf of the company - some way their investment in you and your career. • Make your case compelling and matter of fact, without personalizing the situation. This is a business deal – create a business like plan. Lay out for us your value based upon your current performance and future potential and commitment to the organization. Get creative and help us help you – if you are afraid that the dollars don’t exist today, show them how we can afford it by giving us a menu of great ideas for cost savings, only a portion of which would go to cover your requested raise. Act as a partner by letting them know that you understand the pressures they are facing and are glad to make it easy for them to find the money and compelling for them to keep you happy. • If no money exists and your are in a “turn-around or close” situation, forgo the raise and ask for a signed contract that lays out the future payoff for you in return for your investment in this crucial time for the company. Ask for a percentage of the future growth or a pay-off when some key, measurable performance indicators are met. • Invest in yourself. Don’t wait for your employer to determine your future earning potential or the fate of your career wealth. Don’t ask for your employer to work harder than you are at getting your pay increased. Downtimes are perfect times to upgrade your skill set, volunteer for cross-training, widen your experience by accepting lateral moves within the company, and enhance your value by becoming a great utility player who knows the industry and the business itself. Develop yourself with outside experiences such as key volunteer work, board involvement, continuing education. Be willing to take on additional responsibility, especially when it builds your capabilities and ultimately your resume. When the answer comes down and it isn’t everything you hoped for and nothing at all, watch your attitude! Your ability to accept reality and continue to succeed will make the loudest statement of all regarding your professionalism and emotional cost and whether or not our decision was the correct one. With no raise, you have a choice to leave or stay although it is a choice that you should never bring up in negotiations. If you stay it is your choice and do it joyfully – or leave. It is not an option to stay and pout, whine, or be a sorry loser. The organization gave you an answer for now, it is up to you to maintain your value proposition by maintaining a great attitude up to the very minute you ask again or leave the organization for a better opportunity. Should you ask for that raise? That depends, not on the economy but on you and the value you provide. But if you have been a whiny, resistant, high maintenance, emotionally expensive, woe is me, report the news, not make the news kind of employee? Forget about it! Your employer isn’t even getting their money’s worth currently let alone going to be willing to pay more for the privilege.
Tuesday, March 30. 2010
For those of you just facing graduation from college - here are some tips to ensure that you are taking accountability for your future and positioning yourself to get a great job. Act as if you already have the perfect job – get dressed, out of the house, and hang where you will be in contact with those you wish to join. Don’t underestimate the power or proximity! Looking and feeling familiar gives you a huge advantage, as does the inside information you will pick up and the contacts you will make. Join the premier association that is affiliated with your chosen field – for instance, HR professionals need to join SHRM (Society for Human Resources) and then get incredibly active – serve on committees, volunteer to help with conferences and events, attend all their meetings and educational offerings. Most importantly, post your resume to the association’s web-site – great traffic looking for the inside track on fellow members in your very field. Don’t have the cash – join as a student now, usually at discounted fees prior to you graduation. Make yourself your own full time job – half time job hunting and half time working or volunteering in strategic ways. To volunteer strategically – find groups who have key contacts you would like to meet and impress on their boards or fund raising committees. Volunteer to help not just in mundane duties but with key events such as board meetings – help set up and take notes to recognition or key fundraising events – helping out will assure that you also get to attend. Place yourself in contact with those you would eventually like to work with and for – wait tables at a popular restaurant where executives in your chosen field will frequent or get a job at the health club or country club visited by key contacts. Print up business cards with your contact information on one side and key attributes from your resume on the other side – a mini resume so to speak. Hand out at least 20 a day – after you have struck up a conversation with someone and asked for their help or contact ideas. Get out of your house and the house or apartment of your friends. Get out and become part of the neighborhood you want to work in. Dress up and hang out in the local coffee shop – hand out those cards. When you become a familiar site – people are more comfortable helping you. Ask the coffee shop attendant to make some introductions as you get to know them better. Practice your “elevator speech” – the thirty second outline of who you are and what you are looking for. Don’t forget to ask for help – people like to help so ask for a name, suggestion, tip or some sort of advice. Ask everyone you connect with for advice on where to look, to whom to talk, and other ideas for how to get employment. Keep a journal in your knapsack or purse to quickly jot down contact information given by others. Follow up on the contacts given and send thank you cards or emails to those who helped. Almost every Chamber of Commerce has a “Young Professionals Group”. Seek out these groups, join and get majorly involved. Use this time to give back – check out Teach for America or Americorps VISTA for opportunities to grow while you give back. With the new administration in the White House, public service will abound with opportunities. Through assignments in the public service sector, you will fine tune your leadership and problem solving skills. To get the most from your experience – tell your story via a blog. Create an email list of the HR professionals in the companies of most interest to you, invite them to join your network and send them the updated blog of your experiences as a way to stay in touch. To get a real job in really tough times – get out there!
Tuesday, March 30. 2010
For those of you praying to keep your jobs and to survive the now rampant layoffs, here’s a tip: Work to make your contributions valuable. Job security comes from adding value in ways that are emotionally inexpensive to your employer. The open jobs that are left out there will go to candidates who can exhibit their ability to contribute great value in spite of challenging circumstances or “unfair” situations. Your ego affects this equation in two ways: It keeps you from adding value to your organization and your clients, and it makes you emotionally expensive to your employer. The ego’s job is to seek approval, accolades, appreciation and validation. It does this at a high cost, many times forgoing the potential for a great outcome in order to be “right.” This leads many bright and talented professionals to argue the worth of a client’s goal or to critique all decisions or even to withhold their expertise in order to prove their point. The ego consumes a great deal of energy colluding with others debating the merit of an idea – energy that could be used to add value and to make the idea work. For true job security: Depersonalize your work environment. You have definitely personalized your work when you are spending any time or energy getting others to believe that you are right, they were wrong or that you should be appreciated more than you are. When you can forgo the need for credit and focus solely on what you could do next that would add the most value, you will receive all that and more. Why? Because you are adding value by accomplishing organizational goals, not feeding the ever-starving ego. Rid yourself of defense. Defense is the first act of war…and defense is the specialty of the ego. Defense will always lead to a fall from employment grace. To move from defense to adding value, consciously agree with the goals of others, immediately and without reservation. Say “yes” and “I want that too.” Find out where you can agree, validate the goals of others and state it clearly. Join your boss or your client, jump in and improvise with them rather than working to stop the action or attempting to redirect the efforts in a self-serving way. Want to add value without the emotional drain? Say “yes” a whole lot more and use the word “and” often. Resist the urge to defend. Use great words such as, “oh,” “I see,” “good to know,” “wow,” “thanks” and “here’s how I can help” to keep from defending and to give yourself time to choose your next action wisely and with an eye toward value. Focus your energies not on what you are receiving, but on what you are able to give, provide and create. A contribution freely given, above and beyond the craziness of who’s right and wrong, whose job it is, who screwed it up, and even whether or not it is supposed to be like this…is one of amazing value without the drain and drama. Those who contribute freely are not only secure in their current jobs, but also extremely marketable to hiring organizations. Remember, you rock and Cy rocks! Lead on my friend.
Tuesday, March 30. 2010
Times are tough, the chips are down, your team’s morale is at an all time low and now this – another decision made on high and handed down for your team to implement. You want to be a positive leader and rally the troops, but the idea has obvious flaws and your team is circling the wagons of resistance. Now what? Resist the urge to storm the powers that be and to make demands for reconsideration. Turn instead to focus on your team. Harness their energy and move them from resistance to flawless execution. Here’s how… I call it “Negative Brainstorming.” First, listen closely to your team as you present new ideas and decisions to your team. Some resistance is to be expected and should not stop the action of moving forward. But if the resistance is large or if even your most positive players are sharing concerns about the idea – it is time to jump in and lead. Next introduce the “rules” of brainstorming in the negative. Each individual can introduce their concerns, one at a time, while you document them in front of the group. The rest of the group needs to refrain from discussion, critique or disagreement. All “issues” with the new decision or idea are put up in front of the group. Continue until the group has exhausted their list of concerns and all are documented. Entitle the list of concerns, “RISKS.” Point out that all concerns are simply risks and the power of the team, the true value they can add is in risk mitigation. For each Risk, use the knowledge of the team to honestly evaluate the probability of the concern actually manifesting itself. For each risk, identify a probability of High, Medium or Low. Finally, to complete your analysis, evaluate the impact of each risk and again label, High, Medium or Low. Time for the magic of Reality Based Leadership – take all the energy that the team was putting into their resistance of the decision and use that energy instead to create strategies to mitigate each Risk that is of Medium to High probability or Medium to High impact. You have led the team from resistance (value-depleting) to risk mitigation (value-adding). Work to build your team’s tolerance of less than perfect decisions made to capitalize on market opportunities or workplace threats by building their confidence in their amazing talent to risk mitigate, delivering great solutions and insulating the customers from any possible downside of the decision. Teams that can move from using their expertise to resist and editorialize and instead use those same talents and expertise to “make it work” are the teams that successfully position themselves as valuable assets and credible witnesses. As the team that consistently helps the powers that be pull off the near impossible, they are the ones who end up with the most credibility when providing feedback and ways to improve the idea, making it cheaper, quicker, easier, or smarter. Most importantly, teams that consistently implement with great results and little emotional expense to the organization are seen in a very positive light. Pretty good team positioning in a world in which leaders are searching high and low for their next team to cut that will impact the organization the least. So, wanna do all you can to help your team in these challenging times? Then jump in and get negative with your team, but only long enough to lead them forward to creating great results and succeeding in spite of challenging circumstances. Try it -use your negative powers for good not evil…oh yeah, now the results are trickling back in – nice save. And remember You rock and Cy rocks! Lead on my friend. Cy
Tuesday, March 30. 2010
Across the nation, in organizations everywhere, there seems to be a new mantra, “Stop all action!” Leaders and their teams are hunkering down and discontinuing all the basic actions necessary to move businesses forward – producing, implementing, innovating, spending money, traveling, hiring, training, rewarding, recognizing, and the rest - at least until we can be more sure, have more information, trust that we have enough resources. A perfect example of when “helping actually hurts” this new phenomenon is sure to make matters much worse rather than better. Lack of movement is stagnating everything from the market to our own businesses. Cutting back doesn’t mean holding back, it means focus. Downturns don’t mean don’t move, the mean move and listen more. Why the temptation to just stop as much as possible, hunker down, play it safe, and wait until the coast is clear? For one, it feels safe and feeds into our wide-spread illusion that we should wait for clarity and help before we can or should act. But survivors – those in airplane crashes or economic crashes credit their survival to the fact that they committed to surviving, made a plan in their minds and acted on that plan. Those that stayed back and waited do not generally survive. We also mistakenly attribute our past failures to quick action, bad ideas, poor judgment and/ or inadequate plans. When, in fact, our past failures were caused by lack of compelling vision, shaken employee confidence, placing personal motives over long-term organizational goals, and our lack of openness to the feedback from our employees, customers, and the market. The way forward is not to stop acting and wait for things to improve, the way forward is to create a clear and compelling vision about what we what to create, create a core of believers, act in focused ways, and to enter into an iterative process of feedback and adaption. It is easy to adopt a mindset of retreat to a smaller world and simpler times. Many organizations are reverting to past and exclusionary approaches, returning to the basics, to the easy stuff. Reality based leaders work instead to adopt a mindset that seeks to maintain the progress and innovation of recent years, the expanded footprint of the business, while conserving resources. Here is how to resist the urge to retreat and keep your teams moving forward. The clarity you and your team are seeking is not clarity of “What should we do?” but clarity about “What is it that we are trying to create?” To get your team staged for success, communicate a clear and compelling vision about what is possible and call people to greatness. Our past failures were in part due to the fact that the visions we laid out were not compelling as they called for short term financial success rather than calling the people to be part of something greater than themselves, creating a better place for all. If the vision only excites those who can personally benefit from its realization, than it isn’t a vision at all – it is an emotional bribe. Whether your team believes the vision possible or impossible, either way they will be right. In order to survive and thrive, team members need to be believers not only in the possibility but in the real probability of success, even in challenging times. Keep the vision alive and long-term so that individuals don’t revert to using their own motives as their guiding principles. Work on the building the confidence of your team in the future and most importantly in their ability to deliver that future. Know that clarity does not come to you through thought alone – it comes from action followed by reflection. Many are adopting a very dangerous and faulty belief – that action should follow clarity and inspiration, when in fact it is action itself that generates inspiration and leads to further clarity. Reality-based leaders first create believers and then they insist on action – not blind, go forward no matter what, action but action. Risks created by moving forward with a “good enough” plan rather than a “perfect” plan are mitigated by the talent on the team who are clear about what we are trying to create and are bought into the vision and are held accountable to ensure that the customers do not feel the effect of any plan imperfections. Many of the risks of the past could have been mitigated but were not due to team members who personally experienced the issues but did little to help. Move and listen, paying attention to the risks. Don’t stop movement with the risks appear, move to mitigate the risks and move again. To even become aware of the risks that need to be mitigated by the application of talent, the leaders and their teams need to eradicate the “I know” mindset and open themselves up to the feedback coming their way on a daily basis – not about how great their plan is but feedback indicating the need for adaption, potential issues, and unwanted effects. All plans need to included a process for iteration, not abandonment of the plan but real-time improvement of the plan. All leaders need to be on high alert for learning, very different from the usual actions of collecting evidence to prove ourselves correct. So I am calling all leaders to get moving. Be wary of those wanting to stop the action, falsely believing it to be a safe and a great survival strategy. Move forward, listening intently, believe the results when you see them, rely on the talent of team to mitigate risks and adapt your course. You will either get the results you sought or a great deal of learning – which is really just future results. And remember, Cy rocks and you rock! Lead on my friend.
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