Benefits and Compensation

‘No Raise This Year’ (Again): Handling the Compensation Conversation


Yesterday’s Advisor showed how author Jathan Janove’s Star Profiles can help managers avoid “Peter Principle” promotions. But it left unanswered the question of how to handle the top salesperson who didn’t get the promotion to sales manager. And, we’ll find help for tackling the tough “no raise this year” talk.


If Mike (less successful as a salesperson but more qualified for sales manager) gets the promotion, how do you minimize the risk that Sara (the superstar salesperson who was less qualified to be manager) will be upset? (Go here for the first part of the story.)


Janove suggests that using the Star Profiles approach, you can help Sara feel better about her situation, (Janove’s book, The Star Profile, was recently published by Davies-Black.)


With the star profile approach, before making your decision, you have discussed each profile characteristic of your star sales manager with Sara, Mike, and the other candidates. You’ve asked them for experiences in their current job and prior employment that indicate a potential match. In this context, a salesperson’s sales success, while relevant, has far less weight than it would in a more conventional, or nonprofile, approach. And Sara knows it.


Even so, how you convey to Sara your decision to promote Mike is extremely important. If you were to use a generalized nonprofile conclusion, something like “We picked Mike because we considered him the best candidate,” then Sara, knowing that she has the highest numbers, is likely to speculate that some unfair or illegitimate reason motivated your decision.


Instead, use the star profile approach, which includes specifics, Janove says: “We selected Mike because, based on our assessment, which includes past experiences, he matches the three characteristics of the star sales manager profile better than any other candidate.”


That message will be far more palatable to Sara, especially if it is accompanied by an aside that acknowledges her star performance in her current job, Janove notes.



“Sorry, no raise—again.” Tough news to deliver, but you can make it palatable. Find out how at BLR’s November 2 webinar, “Sorry, No Raise This Year”: How to Handle Tough Pay Conversations with Employees. Go here for more information.



When candidates recognize that they do not match the characteristics of the star profile, they accept the decision. In fact, they are likely to support it. What a difference that makes, Janove notes. Mike won’t have to manage a disgruntled former colleague. Instead, he’ll have a built-in supporter.


Taking the time to figure out how to deliver bad news is part and parcel of management. Probably the most difficult conversation happening around the country at this time is the tricky “Sorry, no raise this year” conversation. To help, BLR® has arranged a special 90-minute webinar, “Sorry, No Raise This Year”: How to Handle Tough Pay Conversations with Employees.


“Sorry, No Raise This Year”


They’re among the five toughest words you’ll have to say to your employees: “You’re not getting a raise.”


Even though many workers understand that they’re lucky to even have jobs in today’s roller-coaster economy, they may not realize just how tight things are until you break the news that they’re getting a smaller-than-expected pay raise—or no raise at all.


Don’t just cross your fingers and hope for the best. Join us on November 2 for a practical 90-minute webinar on handling tough pay conversations in today’s economy.



No manager wants to deliver bad news. The least you can do is be good at it. Go here for information about BLR’s new webinar, “Sorry, No Raise This Year”: How to Handle Tough Pay Conversations with Employees.



How Does a Webinar Work?


A webinar is remarkably cost-effective and convenient. You participate from your office, using a regular telephone and a computer with an Internet connection. You have no travel costs and no out-of-office time.


Plus, for one low price you can get as many people in your office to participate as you can fit around a speakerphone and a computer screen.


Because the conference is live, you can ask the speakers questions—about your specific issues—either on the phone or via e-mail.


As with all BLR webinars, your satisfaction is assured, or you get a full refund.


Please join us on November 2 for “Sorry, No Raise This Year”: How to Handle Tough Pay Conversations with Employees. Get more information.


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