Let’s talk money
Even after all these years, I’m still surprised at job seekers who don’t know the fine details of their current employment packages.
Senior leaders from across the HR profession, who are actively seeking new work options, but who cannot accurately recall their annual salary, or who simply don’t understand the values of their short and long term incentive plans.
And whilst I appreciate that so many leaders state that their motivation for changing jobs “isn’t about the money”, I haven’t yet met a job seeker who didn’t want to be “kept whole” financially; thus all the more bemusing that they aren’t clear on their current numbers.
I understand that LTIP can be complicated, and values of the various products within it change depending on stock fluctuations. I understand that annual bonus payments fluctuate. I understand that people probably don’t think about their salary outside of formal performance review periods.
But if you are serious about making a professional move, you really need to understand all the elements of your current package to avoid wasting time exploring roles that won’t meet your financial expectations.
Additionally, consider the optics of not having this financial data readily to hand. As an experienced professional you’re assuring the recruiter/hiring leader at a potential employer, that your financial acumen and commercial savvy is impressive. And yet you struggle to articulate the working mechanisms of your own LTIP. Or worse, when asked for evidence of salary/bonus/LTIP – the paperwork shows very different values to those you had bandied about. It simply doesn’t instill confidence, and may even raise concerns about your credibility, trustworthiness, and financial knowledge.
Too often, as executive search experts, we have HR leaders who simply refer us to their plan statements, and trust that we can figure out the intricacies of what needs to be negotiated to keep them whole. Shockingly, this even happens with job seekers who are working within the Compensation & Benefits function!
We know that many companies who adopted a “Total Reward” strategy that included employee TR statements, but didn’t include enough education to ensure employees truly understand the intricacies of their packages. But as a senior HR leader, surely you would fill in any knowledge gaps, especially if you’re wanting to make a career move and be sure you’re kept financially whole. Am I missing something?
About the Author
Ian Mael is valued across his HR network for his diligent communications and authentic partnerships. As the leader for interim HR executive hires at Carter Morris, he brings over 15 years of recruitment experience for multi sector hires within demanding deadlines for the full range of specialist roles within the HR profession.