Negotiating a pay rise

godtabh

My wife works for a small company. There are only 5 in her office. The company is made up of a director, two architects (she is one) and two technicians. The two architects specialise in different areas but there work would generate similar revenue. The other architect gets paid more (I assume based on length of service).

During the recession they were hit bad but a core number of staff remained. She was one of the last to join the company and has some perks. Other long term members of staff (director, architect) have a lot more perks including company cars, phones etc etc.

The company cars were due to be scrapped this year when the lease ran out. As this was coming to an end she had no issue with not having this perk. Has her own PAYG phone and not interested in something she would hardly use. She has just found out that the cars are being changed to newer 2015 models.

Given that she hasnt had a pay rise in 3 years, the company is doing better and perks and being retained she wants to ask for a pay rise to offset some of the perks she doesnt have.

Budgets for this year will be agreed shortly so now I feel is the time to inter negotiations.

I agree with her but what do other people think?

davo10

The cars were probably written into the other employees contracts when they joined, it was not in your wife's so it would be difficult to see how they would stump up the monthly lease unless they had to or unless they were doing very well.

As with all wage/contract negotiations, it is a game of nerves, your wife will have to show the company she is worth an increase, the employer will have to consider if she is worth it and very importantly, could they pay a replacement less. If they say no, will she walk?

godtabh

Since it was announced the leases were being returned I assume that was part of a reduction in costs of the company. My wife isnt interested in a car just the fact that the company can afford them.

godtabh

godtabh wrote: »

Since it was announced the leases were being returned I assume that was part of a reduction in costs of the company. My wife isnt interested in a car just the fact that the company can afford them.

That should have said not interested!

davo10

godtabh wrote: »

That should have said not interested!

But if the leases are being renewed, the cost base is staying the same, by giving your wife the equivalent of this "perk" in wage increase, the cost base is increasing, quite significantly.

Again this all depends if your wife wants to stay and the employer wants her to stay. If they say "no" then your wife has a decision to make, but bare in mind that if she threatens to walk, the company may be able to employ another architect on the same or less wages.

A good way of testing your worth in the market is to search around for equivalent jobs and see what they are paying. If there are no equivalent jobs being advertised, then your wife has to be careful as there may be a lot of architects out there who would jump at the chance to get in there.

But if you don't ask, you don't get.

godtabh

I think her angle is that she will be seeking a pay rise or equivalent perk. That could be extra holidays etc etc.

She does bring something unique to the company and has a key relationship that if she left would likely leave with her. She isnt looking to bankrupt a company but she believes that as the company is growing again all should be rewarded. Christmas bonuses were originally back on the cards but never materialised as they were told they need to cut back (more thank likely they didnt want to pay them!). Same story as the cars. Things have changed.

finisklin

Do up her CV....prepare for job interviews and secure a similar role or one with more responsibility.

Show the letter of offer hopefully with better pay and perks than she is currently on to her employer. If the employer is not able to meet this, then she simply walks.

This takes the bluff out of it and ensure that your wife will be respected in future negotiations.

Best of luck with it.