Maximising your career earnings - roberttearle.com · Maximising your career lifecycle earnings potential should not just be about negotiation but also factors like your performance

Maximising your career earnings

Robert TearleCONSULT ING

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White paper: Maximisingyour career earnings


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Copyright 2016 Robert Tearle | roberttearle.com

Maximising your career earnings: you’re missing out on ££££’s

Could you be missing out on income?

Here’s what happens if you’re paid just 5% more than you are now…

Earnings 1 Year 5 Years 10 years 15 years

200k 10k 50k 100k 150k

150k 7.5k 37.5k 75k 112k

100k 5k 25k 50k 75k

75k 3.75k 18.75k 37.5k 56.25k

50k 2.5k 10k 25k 35k

Every 5% less you earn could mean thousands of pounds overall - so grab that 5% with both hands!

It is a common phenomenon for salary levels to vary by 5% either way, so the table above is much more realistic than you might imagine. Sometimes the variation in salaries can be far greater – as much as 15-20% or more!

For sake of simplicity, we’ve not built into the table any salary increases to represent inflation, nor any likely promotion. This is a flatline interpretation of what your lost income could be!

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Copyright 2016 Robert Tearle | roberttearle.com

Finders and keepers: maximising and maintaining your marketability.

Nobody will give you something for nothing. You have to make an effort to find the right job and then keep up the momentum to succeed within it.

First thing’s first: make certain you’re in the right place at the right time. Your prospects are likely to be limited if you live in an isolated region away from the best jobs / best employers for your particular expertise.

Make sure you’re keeping up with, or staying ahead of, changes in the marketplace, industry, technology and culture, that you’re moving with the times.

The big paradigms shaping business and your career success, and the path you take are likely to change over time. What’s of value today, may not be of value in the future. Once awesome companies such as Blackberry, Nokia and Yahoo are no more!

Don’t let yourself get trapped on a sinking ship when it’s time to jump. And don’t just wait for the axe to fall. Who wants to work for Nokia now?

You have to make your moves at the right time and carefully evaluate what’s on offer – high fixed basic but lower earnings overall? Or the other way round? How realistic are the earnings, and how significant is the upside in terms of commissions and stock awards? It’s essential to sit down and do the Maths!

Because it’s not just about the fixed salary, it’s the other benefits too. There are staggering variations between such things as car allowances and pension contributions for people doing the same kind of work in different companies. As much as 100% for cars and 400 % for pensions.

The best ways to maximise your salary are:

• Career progression/seniority

• Leveraging your highest point of value

• Negotiating to be paid top dollar

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Career progression/seniority: working your way to becoming top dog.

The implications of seniority on career lifetime earnings cannot be overstated.

Here’s an example of just how much you have to gain through vertical career progression - moving up the ladder through management and then on to leadership.

• Multiple routes to the top - be strategic! Large, diverse companies will create multiple pathways upwards. Because they are stable and in for the long haul, so long as you put in the time, you are likely to have opportunities to progress.

• Pick the right company in which to invest your time - don’t waste it! If you’re planning on a long-term career working your way up through the ranks you have to pick the right kind of company. A company which is not growing or indeed with declining revenues is unlikely to be expanding and will therefore present little or no scope for promotion. Additionally you should give proper consideration to smaller companies which might be bought out in which case you will have wasted your investment.

• Acceleration through levels of seniority - seize the day!If you’re aiming for the ‘C’ suite you need to get on with it. You need to be well on the way by the time you’re 30-35. Much older than that and you’ve missed the boat. However, it’s important not to overvalue your attributes and try to climb too fast. It’s best to spend two or three years proving yourself at each stage. As they say: there’s no point in getting promoted to the level of your own incompetence!

5 years 10 years 15 years 20 years 25 years

$120k / £80k

$200k / £133k

$350k / £200k

$450k / £300k

$1M / £667k

AN

NU

AL E

AR

NIN

GS

YEARS INTO YOUR CAREER

Individualcontributor

Manager

Senior Manager

CXO

CEO

NED

E $3M / £2M

D $4.3M / £2.1M

C $7M / £4.7M

B $13M / £8.7M

A $16.5M / £11M

Lifetimeearnings



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Copyright 2016 Robert Tearle | roberttearle.com 05

• Put yourself in a strong position to get to the top - have ambition but also be realistic!CEOs usually come from a finance/accounting, sales or operational background. By operational we mean the core activity of the business – for example a banker in an investment bank, an operations manager in a car manufacturer…. If you’re from HR or IT you won’t stand a chance. So be nimble and think about how you might put yourself in a better position.

• If your background is in a non core functional area think about aiming for a company which specialises in your area – an HR consulting or outsourcing company if you’re in HR, or an IT company if your background is in IT. You want your background to carry additional value.

• Overall, you need to align yourself properly in an environment in which your background and culture are particularly well equipped to secure the top job.



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Become the cream of the crop: Leverage your highest point of value.

If you’re not interested in climbing the ladder in so far as seniority is concerned, and therefore you see yourself progressing your career as an individual contributor – then you’re effectively pursuing a horizontal career path. In this case it’s essential you leverage your highest point of value. Failure to do so could lead to your salary flat lining.

Performance drives bonuses – it also determines hierarchical promotion, grades and pay rises. To maximise your bonus, you need to maximise your performance.

You need to ensure you’re on the right grade. Otherwise you’re leaving money on the table.

And you should be cognizant of the advantages of being at the top of the value chain. This is important for people working in individual contributor roles whose salaries might otherwise reach a plateau.

For example: a computer engineer looking after a network of PCs may earn 50K. If he’s looking after a data centre he could be on 100K plus. And in a similar way, a project accountant may earn 100k plus whereas a ledger clerk only 40k.

The more sophisticated the nature of your work, the greater your value. So move yourself into a sophisticated sphere where you will be valued more for your specific skills set!

To be the best you can be, and to operate at the top of the value chain you may need to gain additional qualifications, accreditations or certifications. With them you can be a catalyst, without them just a blocker. Who wants to be operated on by an unqualified surgeon? Not me.

The merits of qualifications should not necessarily be limited to formative years of your career. To maintain your value

or progress your career, it may be necessary to acquire additional knowledge and qualifications beyond those

easily brought to you in your environment.



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Start as you mean to go on: negotiating to be paid top dollar.

How to negotiate a salary increase - because if you don’t ask you don’t get!

The absolute best time to ensure you are properly compensated is when you join a company, because once you have started in a position it’s difficult to get major salary increases beyond inflation, except when you receive a promotion.

This is especially true in medium to large organisations which invariably award pay rises against a performance review. Such companies have a structure and policy which determine rises and prevent ad hoc subjective increases.

In these companies managers are often given a pool of money to distribute as they see fit, so it’s particularly important that you excel at your job, so your manager can justify awarding you more than the next person. Otherwise, he or she can find themselves in a position of having to rob Peter to pay Paul – which psychologically can prevent the manager from doing so.

Furthermore, many corporate organisations require a chain of sign-offs. So it’s important to understand that in-house policies will determine whether your approach for a rise is realistic or not! Salary packages, in particular what you are paid overall, including stock awards, exceptional bonus payments etc, are related to your value and the contribution you make to the company.

Maximising your career lifecycle earnings potential should not just be about negotiation but also factors like your performance and pursuing role types or environments in which you can fully leverage your earnings potential.

All employers have salary bands.

In large firms these will be formally set in stone.

In smaller operations managers and business owners will, consciouslyor unconsciously, pay people in comparison to others.

Your ideal must be to be paid top of band.

Bottom of band

Top of band



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However, if you believe you genuinely deserve to negotiate for a higher salary you should:

As with everything in life it’s all about timing!

Timing is important – consider the time of year when salaries are reviewed, and research your company’s performance to see if increases are affordable!

If, as a result of this, you are confident that you should be considered for a salary increase, stock award or an exceptional bonus payment then you should apply for it straight away. Conversely, if you don’t feel justified in applying for a rise just yet, consider behaving like a model employee for six weeks or so first.

By this I mean getting in early, having a well organised, clear desk, demonstrating a good attitude, being helpful and happy – making sure you’re someone who’s good to be around.

Try for the rise when your manager has had time to recognise that your performance has been strong – after you have delivered good results, for example, or completed a successful project…



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Know your strengths: research your value to your employer.

How much are you worth?

To find out look for some benchmarks, for instance the range of compensation packages applicable to your field.

Check job advertisements, find out from head-hunters and recruitment consultants what is the going rate and range.

• Look up salary surveys via the internet or professional and trade associations. And consult your peer community.

• Analyse how your efforts are contributing to company success, and consider your experience in relation to your peer group. Look around to see who else has your attributes, and who could replace you!

• Assess what level of salary increase you deserve.

Keep in mind that your personal needs or financial commitments should not be a factor in your application. You need a genuine reason to think you are worth more – this could be related to how your performance compares with your colleagues or those working in your field or at the competition, the scope of your responsibilities or an alternative offer of employment.

Consider your highest or overriding single point of value and use this to anchor your request for a pay rise. Bringing too many elements into the conversation could be confusing, and water down your perceived value.

Arrange an appointment with your superior - it’s your date with destiny!

Consider raising the subject casually or taking a sounding on the matter before suggesting a formal meeting. If appropriate ask for and state your reason for the meeting. Consider convenience factors like time and place, and avoid potential interruptions.

• We would suggest you state that you wish to discuss your compensation and avoid issuing any ultimatums.

• Prepare your presentation for maximum impact.

• Document your value to the organisation.

• Highlight your past achievements and contributions to company success.

• Rehearse and rehearse until you are word perfect.

• Be prepared for possible rebuttals (which will be a natural reaction), and have your response/s ready.

• Know who you’re fighting before you go into the ring so to speak!



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Your conduct at the meeting - be cool, calm and collected at all times.

• Create the right impression; ensure you are dressed appropriately.

• Project a friendly and confident manner, and give particulars on what you enjoy about your work.

• Give your presentation firmly and in a measured manner.

• Allow for possible interruptions, such as requests for clarifications.

• State your expected salary/compensation package.

• Outline how much you think you are worth and in what ways you will earn the extra salary reward.

• If your expectation is rebuffed, be prepared to negotiate.

• Should you fail to get what you want, it is fine to express disappointment but, unless you want to make it a resigning issue, don’t burn your bridges.

• Suggest that your employer thinks it over, and arrange another meeting in the near future or at some predetermined time, say three to six months.

• If appropriate, offer to undergo extra training or ask for advice on how you could perform even better.

Follow up if unsuccessful - prove yourself and you will get there if you really want it.

• Document your continuing successes for future negotiations.

• Take on additional responsibilities; go the extra mile to further your cause. It will be worth it in the long run!



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An opportunity not to be missed: negotiating a salary when interviewing with a new employer.

The best time to ensure you are properly compensated is when you join a company - because there’s no time the like present!

It’s important that you understand what the going rates are for your kind of work. Armed with this knowledge you will be able to quote and leverage facts or benchmarks, and be more confident when negotiating. So do your research!

Seek out some benchmarks:

• Adverts, salary surveys, speak with head-hunters, recruitment consultants and fellow colleagues.

• You need to determine your strongest point of reference to negotiate the best offer – this will most often be: the value of another offer, what other companies are paying, a counter offer, or, in a small number cases – that you are the best in your industry or clear that you are very much best in class.

When asked about your salary package:

• Plan in advance about what to say when asked about your salary package / expectations

• People who inflate their salary packages are frequently found out. This can compromise offers being made and ruin any starting period…

• Be careful about simply stating your current salary – this tends to set an expectation and may lead the employer to make a like-for-like offer.

• Importantly: when asked about your salary package, succinctly state your current salary and that one of the things you are looking for in a new opportunity is a salary increase.

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Misc:

You need to know what your bottom line is, and the figure that you really want.

• Focus on the higher number, but don’t throw the job away by over-pricing yourself.

• Ideally discuss the salary package at the end of the interview process. By then you will have built your value in their eyes before talking money. And you will have established they want to hire you.

• When asked about your current salary package:

• Give a clear answer to include a fixed basic salary and TOTAL VALUE of your package. Mention any other major points which you think should be taken into account – for example, benefits, a pending pay rise etc. Notwithstanding the point # above.

• Identify your most convincing benchmark:

• Which gives you the greatest leverage AND use it your advantage.

• Extra value you bring to the employer.

• What are the positions above and below yours paid?

• Other job offers and counter offers.

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Maximising your career earnings - roberttearle.com · Maximising your career lifecycle earnings potential should not just be about negotiation but also factors like your performance