Drop in Salary

Thursday, May 28th, 2009 - Executive CV, Executive Recruitment, Job Interview, Job Search, Recruitment

Total Executive Package

In this current economic climate, many who are forced or choose to move are having to take a drop in salary, particularly if they have a weak Executive CV.

This logical move for career or employment reasons in this economic climate, but has always been a large aspect of Executive Career management. Most executives are faced at some point during their career with a corporate to SME job change in order to gain longer term fulfilment and reward. So, how do you handle this situation?

Firstly, be aware that you may have to take a drop in direct remuneration in the first place, but understand why you are making this choice. If life was wholly about work, then money as a reward would come higher in negotiating goals. But the fact you want to provide more for your family, and spend more time with your friends – both of whom you gain more from – means that we need to get life into perspective and balance.

• Money is a temporary thing: it is simply a reward for donating your time to do someone else’s job.
• Time is an irreplaceable resource. It is how you effectively use your time which defines how fulfilled a life you will have

Goals + Package = Reward

Accepting that anyone can become a millionaire these days in what ever they really want to do, it is what you use that money for which gets you what you want in life. Hence although the money may be better or worse, if you have to effectively work twice as many hours or spend large amounts of time away from home, what is the total life and hence job return?

Always, before making any career choice, think:

“If that’s my goal, how quickly can I reach it using pathA over pathB?”

I get further clarity for most clients by asking them:

“What will you be able to write on your CV/resume in 2years time, if you took that job?”

If you have clear goals, then the skills and experience you gain will provide the rewards – on both a personal as well as resultant financial level – that you desire.

With that later point in mind, and aiming at a career over immediate cash income, most executive reward systems are hence based on a package over a direct scale of immediate cash income. Packages can consist of almost any element that the company considers that they they need to provide to the executive in order to obtain, retain and enable them to work most effectively in that role/position. Board and director level posts can still include moving costs, but golden hello‘s I think in light of the many media stories during this economic downturn will be removed. Executive reward packages will move to a combination of immediate goals, and longer term strategic outputs. This will lead to post-position reward schemes, which remove the risk of paper profit payments, and recognise the fact that immediate executive effort doesn’t always and is not most securely provided as immediate cash.

Therefore, when an executive is approached by an Executive Search firm, it is hence worth while if the job sounds interesting to ask them to outline the total package expectations you would have. Most head hunters will never give away initially the company or position they are searching for, so why should you tell them your salary if it is not in the public domain?

Total package I always say to Executive CV clients is an issue to be assured of by the Executive Search firm, and not given away by the executive at the earliest possible time. The longer you are kept inside the appointment system, the more the employer wants you, the better your negotiating position: so why give away your salary? Always test the edges and the limits, and ask what the previous incumbent or similar level executives are presently remunerated at – but never give away your salary. The moment the executive candidate states their salary – and not total package – that will then define the highest point at which the employer offers will start.

Salary reduction is a part of the current economic cycle, and has always been part of the executive career. But a position which takes you where you want to go, and total remuneration package which shows business return and rewards loyalty, should be the focus of where the successful executive negotiates.

Good Luck!

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