Payrise - been asked to come up with a figure

[sasparilla1]

I work for a small business - I've been here for over 25 years and now run it on a day to day basis. It's in a very niche industry, and I'm pretty well known and associated with my company.

I currently earn £40k, but have been waiting for a pay rise for some time - probably 2 years! My boss (who rarely comes into the office or does much from home) has been trying to sell the company and has always said he can't do anything due to various agreements he's signed with interested party's.

The most recent sale has just fallen through AGAIN, so now I'm intent on nailing him down, and he says I need to come up with a figure - but I'm not sure where to start. Whatever I come up with needs to be over what I actually want as he will without doubt try to batter it down!

I've tried looking for similar roles online, but I just can't find anything.
My main tasks are:
Quotes and admin
Overseeing accounts and payroll
Organising orders
Running the factory
Purchasing
HR
IT
Keeping the ISO up to date and arranging and taking part in the audit
and anything else you think of!

Two things jumped out at me

1. Niche industry - would they be able to find someone to replace you? If not, you have a LOT of pricing power..hiring for the role you described would be a nightmare.

1. Owner wants to sell. Tell him you'll stay with new owners as part of transition/sales process

If I was you - look at the total profitability of the business. If raising your salary 20k is less than a 5% impact on profitability of the enterprise, then the owner will sign off in a nanosecond.

You are quite literally the cog keeping the machine going. They know that.

Nonsense about sales agreements impacting salaries, unless it is already almost sold /signed on. Imagine if you left before sale...

The owner is just relying on your good nature and loyalty

Same as previous poster. I assume you have a lot of insight into the financials of the company. I’d start by seeing how much he can afford to pay you.
You are massively underpaid and could use all those skills in an operations role elsewhere.
If it were me I’d want £100k plus. Don’t forget you’ve been underpaid for years by the sound of it.
Can he sell the business without you running it?

I think context is everything. What is the size of the company. Are you managing 5, 50 or 500 people?

How many people? Sounds like a COO role?? Dependent on company size, around £80k seems fair.

Just to point out a lady I know JUST does the last bit (ISO admin / audits) for a small manufacturer in Warwick and gets paid £120k. Another lady I know is a company secretary for a tiny manufacturer in the East Midlands and gets paid £100k.

I know office managers on £50-£60k and they aren’t running a factory or doing half the others things you are!

Thank you both!

There isn't a massive amount of profitability at the moment, but there is a lot of potential. And he doesn't have the contacts - I do.

My loyalty is being sorely tested at the moment, he doesn't seem very loyal to me or to the other workers here. He can be very manipulative. Unfortunately most people here are seeing him for what he is!!

In theory, he could sell the business to someone outside of the industry who thinks it's a bit flash and exciting (manufacturing side of the entertainment industry) but anyone within in the industry would want me. I currently have someone who's been trying to buy it for over 2 years now because they want me, but didn't want to bankrupt a company. And my MD is just being a nightmare. He's generally a difficult person to deal with, I just know how to do it.

What I don't want to do is randomly say "oh,10%" - because that's an insult tbh.

Where are you in the country?

Sorry, lots more replies in between phone calls and pressing the button!

It is a small company - I manage 8 plus lots of sub-contractors.

I'm in Hampshire.

It sounds like a large % increase is going to be unpalatable to him. What would you do if you asked for a significant increase and he refuses? Would you leave? How much do you value this job? How easy do you think would find to secure an equivalent but better paid job elsewhere?

@Sprig1

It sounds like a large % increase is going to be unpalatable to him. What would you do if you asked for a significant increase and he refuses? Would you leave? How much do you value this job? How easy do you think would find to secure an equivalent but better paid job elsewhere?

I have an open ended job offer from a company that has been trying to buy the one I work for. Much of that would be remotely as they're based in Luton, which isn't the greatest of drives from me. Although most visits and meetings would be in London, which is an hour by train.

The main reason I have stayed here so long is because it's suited me with the children, it's 5 minutes from home! It's also very flexible, so if there is an issue I can go and sort it easily.

I think I could secure something with better pay quite easily. I have chatted with a friend who is a recruitment consultant and she said I could easily find something, so I'm not too worried about that.

The biggest guilt point is the people I'm managing to be honest!!!

What is the other company offering you? Have you got as far as discussing salary with them? I would use that as a benchmark.

Have you considered buying the company?

@TibetanTerrah

Have you considered buying the company?

I was thinking that!

@TibetanTerrah

Have you considered buying the company?

Yes, twice!!

Once on my own, and then with a guy who owns two other businesses within industry.

But my MD and his business partner have it drastically over-valued, and I know how he's fiddling things around in the accounts to make it look better! I'm literally the worse person to sell it it.....

My other option is to walk away and set up either on my own or with a business partner, but my dh and I are just ploughing our savings into buying a bigger a house.

Ask your friend what the going rate for a similar role is in your area and pitch higher than that.

Sadly a job that offers a short commute with family commitments is sometimes too comfortable for career and salary increase prospects. Employers see you comfortable and offer peanuts. Happened to me - I walked. You need to decide what you want, what fits your family at this point in time and where you want to be in 5-10 years. The answers may be in direct conflict with each other.

Off the wall suggestions.....
You could offer more value to him - offer to line up 3 potential buyers from your contacts - will cost him a finding fee of 10% of company valuation.

Ask for £30k, accept nothing less than £15k

Offer to buy in 50% and 100% after 3 years

Check out your contract to make sure you don't have a clause that prevents you setting up you own company with a certain distance / distance.

Sounds like an office manager type of role.

Question is - realistically would you ever leave? you either a) list a figure way above what you want and they might meet you half way - present salary surveys/speak to recruiters.

b) play it save and just us for a reasonable jump.

If bothering I'd just go for option A. realistically though, as I said... would you actually quit? If not then prepare for option B.

Sorry, I meant 'safe'

I thought I'd come back and update with what happened!

I asked for a just under 29% pay rise and I put together a proposal of why I'd come up with that amount and the extra value he/ the company would get from me.

And today he agreed to it without even attempting to knock me down at bit! So I'm a little bit shocked, but also very pleased.