Dear Stephen,
I am a Sales Director for a high-end residential furniture company. We’re in the process of expanding across the US. We’re evolving from a “trade only” model to retail as well. Business has been brisk and we’re trying to find new salespeople everywhere. Some people come with a book of business, others we think we will be able to train, but regardless of experience level it seems today that the salaries run the gamut and they’re always much higher than what we’re used to paying.
Our compensation program is uniquely incentive driven. We offer a competitive base salary with a large upside on “sold” business. I’m a first-rate recruiter myself (nothing personal, in fact you’re about to read how excellent I am) and I recently identified an outstanding sales rep for a new location. I cold called this person and he jumped at the chance for an interview. He was more than just mildly interested in talking to me, however during the course of the first interview he explained that his base salary alone was much higher than our base salary range. Let’s just say roughly 25% higher. That being said, he’s a tenured individual so it was somewhat understandable why he was making a premium amount of money. Long story short, his base salary was higher than mine.
I explained to him that my company wanting to hire him was now probably a long shot due to his current base salary being above our budget, but I introduced him to my boss so that he could see what a quality candidate would cost.
My boss immediately recognized what this guy could bring to the table and explained to me that he wanted to extend him an offer competitive to what he’s currently making. It’s roughly $20K more than my own base. Needless to say, I was speechless. I reminded my boss that it was above my own base salary, and he was quick to remind me that it’s not uncommon for salespeople to make more than their managers. As a rebuttal, I said that I understood this in terms of overall compensation including commission, which I don’t have a problem with, but this was the base salary alone and we’ve had no precedent of any salesperson making a base salary higher than a manager at our company.
My boss was somewhat dismissive to me and moved along the hiring process. He offered the guy a sales position and I’m frustrated, annoyed, and insulted that his base salary is higher than mine. I reapproached my boss about a raise with no luck and reminded him I’ve been with the company for ten years. I’m well aware that it’s hard to get a big raise from any company that you’ve been with for a long time. I like the job, I don’t want to leave, but it’s clear I’m not going to get a raise, and I hate to admit it, but I’m going to resent the new employee who’s subordinate to me that I now have to manage. And my resentment goes double for my boss. Any advice?
Signed,
Resentment in Residential
_________________________________
Dear Resentment,
I have only one thing to say to you: turn on your green light!
What does that mean? LinkedIn offers a discreet way to notify recruiters that you’re “open to work,” and it really works! Recruiters love this feature. Executive recruiters – Headhunters - subscribe to a more elaborate and expensive version of LinkedIn. It’s called #LinkedInRecruiter. Let me also add that HR at a company may also subscribe to this feature. On your profile, go to the “open to” section, and click that you’re “open to work” and that you “only want recruiters to see it.” This allows recruiters to confidentially see a green circle around your photo which says you’re open to work but it cannot be seen by the general public. By the way, be sure your profile is linked to your employer’s company page, with no end date, and that your company’s logo is displayed against your current job. This makes it so that recruiters at your current company won’t be able to see that you’re “open to work.”
I’m told that for people who use this Linkedin feature there is a 15% higher response rate from recruiters. And this bears repeating – the only people who can see your ‘open to work’ status are those who have the LinkedIn Recruiter License. And if you take the right steps, your company’s own recruiters will not be able to see your green light. Be sure to read up carefully on how to do this exactly correct or it could seriously derail your secret job hunt.
Now back to you and your specific question – it’s clearly time for you to move on. I’m sorry, but it’s the truth. While it is not uncommon for salespeople to make more money, sometimes substantially more, than the sales manager or even people in a Directors position like yourself, it’s a bit more uncommon when the salesperson’s base salary exceeds your own to the level you’re describing. Typically, a smart company that wants to keep you and recognizes that you have a long tenure with them which has prevented them from catching up your base salary with merit increases could, and should, do so right now. Let me point out that although you’re in residential furniture, this same scenario occurs in contract furniture, floor coverings, wall coverings, textile, everything. This happens in every sales organization and is more common today because base salaries have not caught up with inflation. But what this means for you is that they would just jump you at least $5K above what they’re paying the new salesperson, which any smart organization can normally do. But the fact that your company has not done this tells me they’re not that interested in keeping you and so it’s time to start discreetly exploring other opportunities.
It's important for you to recognize however that you may not get another job that pays you what you want so fast. And turning on your ‘green light’ lets you explore what’s out there and see who calls you at your own pace. In addition, you should be discreetly putting your own feelers out within your own network because recruiters are just a small part of the equation when it comes to finding a new job. Another resource, to be used carefully, is to ask your trusted customers if they might be comfortable introducing you where they know a company might be hiring. In other words, a competitive vendor to your own company.
So let’s say it all works out, with the terms you are looking for, and you get a new job offer. You go to resign from your present employer and you get a generous counteroffer. Forget it! I say pass on a counteroffer from this company. Take this as a personal insult – they only appreciate your value when you go to quit, and it reinforces your decision to further your career elsewhere.
One thing is for sure, start to look before you have to. I hope this helps.
Signed,
Stephen