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HELP! Have to write a 'business case' for dh's pay rise (we really need it)...

21 replies

bloss · 29/11/2009 08:27

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Lonicera · 29/11/2009 08:34

He should look for another job. When he gets one he can either use it as a bargaining tool to negotiate better terms or take it.

ABetaDad · 29/11/2009 08:58

Definitley threaten to leave. Its the only way. Your DH is being a soft touch and forget the whole writing a business case letter. That is just a ruse. There is no business case. He either gets a pay rise of he leaves. That is the only business case they will listen to. They need a resource and they have to pay. DH will be worse of if he needs to buy a car.

In my view, simply tell DH to write a letter saying he was hired at £10k less than advertised plus he expected a car. He has proved himself and now expects to be paid the same as others plus a car. If he doe snot get that he will have no choice but to seek employment elsewhere.

He does not have to resign but just tell them he is activley looking because he is simply not be paid enough. Then get your DH to polish up his CV and start applying for jobs. If his boss calls him in then he can say he is applying for jobs and be absolutely truthful about that. It will bolster DHs confidence if he gets called for a few interviews too.

bloss · 29/11/2009 10:59

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Earlybird · 29/11/2009 11:06

Need more info:

Would your dh be difficult for the company to replace?
Are there many qualified people around who might be suitable for his job?
Is there anyone else in the company with the same position/responsibilities, and if so, what is their pay package?
Any idea why your dh was hired if his qualifications 'weren't quite right'? What was it about him that made the company willing to overlook that fact?

bloss · 29/11/2009 13:03

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Earlybird · 29/11/2009 14:35

Sorry to keep asking questions, but it may help you/dh think things through a bit more....

who has said 'make a business case' for the payrise? is it the same tough negotiator that hired your dh? Is that man the person your dh reports to?

Do you/dh really think the 'business case' reason will get proper consideration, or is it possibly a cynical delaying tactic?

Any chance your dh could be promoted, and thus get a payrise to the appropriate salary level? Tell them that the job he is doing (over the past few months) is completely different to the job he was hired to do. Can he compare current responsibilites to the job description of the role he was hired for?

Is there an HR department? Could they advise on policy for job performance evaluations and payrises?

Is it possible the 'Reed HR site' is mainly based on London salaries that aren't the 'going rate' where your dh is based?

Finally (for now ), would it be fairly easy for your dh to move jobs to another company? If so, he can probably 'push' harder...

Disenchanted3 · 29/11/2009 14:37

If hes worth another 13k shouldn't he be able to figure this out alone

flowerybeanbag · 29/11/2009 15:07

Not sure how requesting a business case for a payrise during a pay freeze would be a 'ruse'. A ruse to achieve what?

He should construct a business case outlining why the company need (Note the word 'need' not 'should'. 'Should' isn't enough really particularly in this climate) to pay him more containing the following information:

-Any relevant salary survey information he can gather.

-Details of similar jobs currently available in the same or very similar sectors, in comparable organisations. Ideally these jobs should not require the qualifications he has not got. These will demonstrate that he has a realistic chance of getting the higher salary he is requesting elsewhere and therefore could easily leave if he chose to.

-Details of how well he has performed over the last 15 months, meeting/exceeding all his objectives, the significant achievements he has made and details of the positive impact he has had on the team.

With regard to the issue of his qualifications, there are arguments on both sides. If he has been performing well in the job since he arrived he can easily make the argument that those qualifications are not necessary anyway. However just because qualifications are not strictly necessary doesn't mean the market rate for people who have those qualifications shouldn't be higher than those without. So ideally examples of other jobs should not require them.

I'm not a fan of 'threatening to leave'. It is unlikely to endear him to anyone helpful. It runs the risk of coming across as childish petulance, and showing an inflated sense of his own importance (nobody is irreplaceable), and will sound like an empty threat lacking credibility in this climate where employers may think recruiting isn't going to be too problematic and there is no need to pay high salaries to attract candidates.

Anyone coming to me threatening to leave unless they get more money is likely to be met with this face followed by a polite request to go away and provide decent evidence as to why the requested salary is appropriate, at which point it will seriously be considered. Once they've left my office I would probably be rolling my eyes .

Foot-stamping is unlikely to get relevant people on-side and even if it were to achieve the desired result in the short-term, is unlikely to do him any favours in the long-term.

It may well be the case that the prospect of losing your DH might result in a higher salary being offered, but unless the threat to leave comes accompanied by a resignation letter and details of a job offer at a higher salary, it's unlikely to be taken seriously ime.

I would suggest he goes ahead and produces a credible business case and at the same time starts looking elsewhere. If the business case doesn't do the trick, he will be on the way to being in a position to resign with a job offer which should be his next step.

ABetaDad · 29/11/2009 16:03

Credible threats are the only thing that work. It is a zero sum game. There is a finite pot of money in a departmental budget. It is a straight fight over who get it. Get a job offer from elsewhere and slap it on the table in front of the boss.

The thing to watch out for is that other members of a team are stamping their feet and demanding money and if the DH in this case does not join in he will get a pay cut or no bonus just to keep the departmental budget in line while the other people in the team get what they want.

There is no rational business case. There never is over pay. Businesses pay what they can get away with in order to keep the employees they want.

ABetaDad · 29/11/2009 16:13

Slightly off topic but what I have just written is the reason women get underpaid.

Seen it happen a lot in the City where the pay gap between men and women is largest. Women beleive there is a rational basis to pay negotiation. If I do well I get paid more etc etc. That is not how it works.

Managers pay what they can get away with and pay more to people they personlly like or have to retain in the face of threats to resign.

Earlybird · 29/11/2009 16:30

Flowery (congratulations on new baby, btw!) - i suggested it could be a ruse because the company is actually treating bloss' dh quite badly:

*they know the job should be paying quite a bit more as it was originally advertised as such.

*the fact that the job was supposed to come with a car that has somehow never materialised

*I worked in a 'desirable' industry, and have witnessed situations where people were told to 'make their case' for bigger title/more pay as a way of the company 'buying time'. The employee was given the impression that something more was possible - when in fact, it was highly unlikely, so the person was 'strung along'. It is the attitude of a company that exploits/replaces its' workers rather than valuing their knowledge and experience as intangible assets.

*the fact that the job has expanded so dramatically due to new management, and he now travels/does overtime, etc. with no extra compensation.

It is a crummy way of treating people, but it does happen - especially when so many people are out of work, so new employees are rather 'easy' to come by.

flowerybeanbag · 29/11/2009 16:32

Exactly why I used the word 'need' instead of should. If bloss's DH can demonstrate that they need to pay him more because there are lots of other jobs paying more that he can leave for, that's more likely to work, and the only credible threat would be one backed up by another job offer and a resignation letter.

Earlybird · 29/11/2009 17:02

yes, he shouldn't threaten to leave without a firm offer from elsewhere just in case they call his bluff.

Some companies respond well to another job offer and only then fully appreciate/'take care of' the employee they stand to lose. Other companies don't respond well to ultimatums.

bloss · 29/11/2009 18:27

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LadyBee · 29/11/2009 19:28

That's great Bloss and I really hope that your DH does get a firm offer from one of these, this would put him in an extremely strong position.
I still think it's worth putting together a case for his raise. Perhaps it would be easier to think of it as 'making it easy for the manager to say yes' - no matter what level he is at, a request for a raise is always going to have to go up a couple of levels for being signed off. Even if his manager is sympathetic and feels that he deserves it, s/he is going to have to make the same case to his/her supervisor, so you need to make that easy for him.
I think the best case is one that points out the significant risks to the success of current projects/important business goals IF he were to leave.

  • What particular knowledge would be lost if he were to go?
  • What impact would that have on the projects?
  • If it meant delay, would there be a cost implication to that?
  • If he were to go, and they needed to replace with someone at £40, find out what the average cost of recruiting (eg. advertising, cost of interviewing time) - by NOT going he's saving the company this amount of money.
  • you mention that he's got good people skills and that this is rare - this becomes a premium skill in his area then, provide some concrete examples showing how this has benefited the company (e.g avoiding loss of experienced staff? increasing productivity?)

You need to try to back this up with figures - the bottom line is what most managers need to be able to report upwards to get sign off.

I know it's faff, but doing it will also help your DH if he decides to go for interviews as he'll have answers to questions about his positive qualities right there. If he jumps through this hoop, and THEN follows up with a "we need to talk, I'm meeting with another company about a position with them and I need to know where I stand with this company and my compensation package" - that's a really easy message for his manager to push for a 'yes' to.

ABetaDad · 29/11/2009 20:07

bloss - sounds like a company owned by a private equity group being made ready for sale ASAP so costs are being cut to the bone to make profits look good witout a care for the future and management in line for a nice fat payout when it is sold.

Your DH definitley needs to look for another job. It sounds dreadful. Good luck with the job applications. TBH I think he should even bother to negotiate. He should just leave if he gets either job.

bigstripeytiger · 29/11/2009 20:17

I think that your DH is right to apply for another job. Not just because he might get one of them , but also because this is the easiest way of demonstrating to his current employer that thay need to pay him more to keep him.

flowerybeanbag · 30/11/2009 14:32

Thanks Earlybird. Um, I thought it was ABetaDad that suggested the business case was a ruse...I wasn't sure what he felt the 'ruse' was designed to achieve, especially as he said there is never a business case over pay. A delaying tactic is a possibility though I agree, if they are concerned Bloss's DH might leave.

Bloss I would caution against assuming the request for a business case demonstrating the need for a rise is a delaying tactic and therefore not producing it. The bottom line is they may indeed have no intention of giving him a raise, but they certainly won't give him one without the business case as they have requested it. It would be unlikely for a company to give a pay rise outside of their normal pay review process without some concrete information as to why the amount suggested is appropriate anyway, but it would be even more astonishing for a company with a universal pay freeze to make an exception to that without some pretty robust evidence both to convince the relevant people who will recommend the rise and to back up their decision in the context of a pay freeze across the business.

There may well be no intention of granting the rise, and I would agree your DH should certainly continue to look for something else, with a view to either accepting another job offer and/or using it to try to get what he wants from his current employer. But he should produce the business case in the meantime.

ConstantlyWritingThankYouCards · 30/11/2009 23:17

I agree with LadyBee.

Also - in my experience (at a company that has similar tactics) it's a must to provide a business case for everyone's current salary and payrises. Therefore I'd look at the revenue streams he's protecting and list them out with £ value as well as potential rev streams he's intrinsic to growing. Any new business ideas can form part of this. Then there are some hard targets (£) and soft ones (people skills and all the other bits LadyBee talked about)

I woulnd't advise threatening to leave - at my place they'd say okay then.

Good luck! x

bloss · 05/12/2009 17:41

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ABetaDad · 06/12/2009 19:44

Now THAT is what I call a result!

Well done Mr Bloss and let that be a lesson to them.

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