Options available to satisfy exceptional top-of-range employees

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Dear Joan:

In a nutshell, I do an exceptional job, and am very reliable, have an excellent reputation for resolving issues, coming up with ideas, being supportive and a positive team player, etc. This may sound overly conceited, but actually, even though I am these things, I do not promote myself at all and do not point out to colleagues, my manager or others that I came up with the idea or solved the problem. People come to me for advice and I give it freely and gladly. A lot of my ideas, solutions, and trouble shooting are implemented without further thought and I really don’t want to point out the fact that it was my doing. Sometimes the ideas or concerns I raised are quoted by others to make a point or implement a change and these are successfully implemented.

The issue is that recently my manager is hinting that since I am reaching the salary maximum for my position, there may not be any future increase outside the usual yearly incremental. There is no argument that I do an outstanding job and there are no issues with my performance. My manager advises that moving the salary grid is not do-able without a major review of the salary grids for all the departments in the organization. He says that it is a complicated process and therefore, even though my manager agrees that I am an exceptional employee, exceptional service is the ‘normal’ here.

I am not sure how to handle this situation. I think my experience and contribution has grown every year and that really my contribution is above and beyond my job responsibilities.  But I manage to do more on my job with no problem and I guess it is taken for granted and not really recognized for compensation purposes. I think my only option is to go elsewhere, though I love my job, colleagues and company, overall. Any suggestions?

Answer:

Ask your manager if your company grants a special end-of-year “bonus” for exceptional top-of-range employees. This payment is not added to the individual’s base pay, so must be earned each year. Many companies have adopted this policy because of people like you. These top-of-range monetary awards have become very common because long-term employees with a lot of company history and experience were either becoming disgruntled, or leaving their organizations. And it’s no wonder…why stay in a place where longevity is punished?

While your ideas and excellent reputation for solving problems is something you deserve to be very proud of (and hopefully your manager and others appreciate), it will not qualify you for a bump into a new salary grid. Your manager is correct when he says it’s a big deal to re-calibrate a salary range.

Let’s look at this from the company’s perspective. Every job is worth a certain amount on the open market. Companies survey their peer companies, in similar industries in their location and nation-wide, to come up with job ranges—minimum for newer employees and maximum for experienced employees. If they allowed the employee to keep getting raises beyond that range they would have a mess on their hands. Payroll costs would soar out of control. There would be no consistency in the marketplace. One accountant with twenty years of experience could be making more than the Vice President of Accounting who is new to the company.

Typically, there are four ways to make more money on a job:

1. Yearly, cost of living increases. (Most companies have abandoned this method for a pay-for-performance system. However, it sounds as if your company still uses a form of this.)

2. Pay-for-performance, or “merit” pay, based on how well you performed your job against the job description and annual goals. This is typically where good ideas and extra initiative are rewarded.

3. A move up in the salary range, which occurs when your job responsibilities increase in scope and authority by approximately 20 percent, or more.

4. Bonuses, which are sometimes granted for a special project, an excellent top-of-range performance, or a spot bonus for something done above and beyond expectations.

If your company doesn’t grant a bonus for long-term employees at the top of their range, and you want to make more money, the only options are for you to move to a job in your company that falls in a higher salary bracket, or leave the company. However, it would be a shame to leave a company that is such a great fit for you.

While the money is always nice to have, I suspect you are more interested in the recognition and appreciation a pay increase signifies. Hopefully, your colleagues recognize you for your years of experience—and it certainly sounds as if they seek out your wise advice, based on years of experience. Hopefully, your company will take some of your good advice and install an end-of-year bonus, so people like you get justly rewarded.

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