Dealing with the fallout from the salary surveys—increasing your salary and evaluating the salaries of your IT professionals.
Salary Surveys: Managing The Pain
Dealing with the fallout from the salary surveys—increasing your salary and evaluating the salaries of your IT professionals.
- By Steve Crandall
- August 01, 2000
Here’s another binary split: Some of you are managers
and some of you are managed. But that’s where the split
ends because I know that, to a degree, our salary survey
is bad news for all of you managers. If I were you, I’d
run to the mailroom and confiscate all copies of MCP
Magazine and block access to our Web site.
There are three possibilities: Your employees are making
less than our survey, they’re making more, or they’re
right on the average. Looking at it in reverse, if their
salaries correspond to the survey, good work, but you’ve
merely bought yourself some time. The last four years,
each survey has shown a steady increase, so prepared to
bump up your budget.
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If Your Employees Are “Overpaid”…
Let’s say your employees are making more than the salary
average. Is that a big “Oops”? Not at all. First, look
at your business model. Are you making money? Sure, you
might make more if you paid less, but then again, you
might not—after all, your employees are your most important
asset, so why put that at risk? Second, you’ll have less
worry about your employees being lured away by more money.
Does that mean you’re home free? Of course not. If your
work environment sucks, if you’re abusive to your employees,
or if their cars keep getting stolen from the parking
lot, paying a higher salary merely delays the inevitable.
By the way, if you’re not making money and you think
your payroll is to blame, here’s a tip: cut headcount,
not salaries. You might think you’re being fairer by cutting
everyone’s pay, but instead, you end up with everyone
being unhappy, rather than just the people you let go.
As Machiavellian as this might sound, people can more
easily justify and rationalize another’s misfortune opposed
to their own.
If Your Employees Are “Underpaid”…
Your employees get their copies of MCP Magazine,
flip to the salary survey, and see they’re below the average.
Time to panic? Yes! But get over it quickly because you
have work to do and decisions to make. First, how much
money do you have? Can you afford to pay more? If not,
might as well close the doors now—your best people will
probably leave, and if you’re left with mediocre people
who can’t get a better salary elsewhere, you’re going
to have a hard time competing for customers anyway.
Next, objectively evaluate your employees. Whom can’t
you afford to lose? Which employees make what you believe
they’re worth, even if it’s below our survey figures?
Adjust accordingly.
No more money? No problem! Those of you who have attended
my “Moving into Management” sessions at MCP TechMentor
know my theory that money isn’t the prime motivator for
good technical resources—it’s important, but it isn’t
everything. Technical people tend to be motivated more
by non-monetary factors, such as quality of work-life
issues. So, get creative. How much would it cost to provide
free drinks and snacks? What about a pool table, a foosball
table, or MP3 players for everyone?
Here’s an example: One of your key people is making $10,000
less than our survey states. You could give that employee
a $10,000 raise, but you know what? The awful truth is
that the employee won’t remember it six months from now
when he’s fighting with his underpowered laptop loaded
with obsolete software. You’d probably accomplish more
by paying a $5,000 increase plus a $5,000 equipment/software/training
voucher—now you’ve rewarded and empowered that employee.
In another example, Greg told me about an employee who
negotiated a small raise, but compensated for that by
negotiating for flextime that lets her work a four-day
week.
There are limitations to the above theory—employees must
be at a sufficiently high income level to start. For minimum
wage employees, money is everything. Also, the ability
to recognize and appreciate the work environment vs. salary
is proportional to the employee’s age, experience, and
maturity level.
One final thought: Alan Greenspan hates surveys like
this—can you say inflation? I can safely predict that,
barring a macroeconomic disaster, next year’s figures
will be higher, and you’ll have to face these issues again.
Shame on you if you’re caught unprepared next year. As
a manager, your job is to plan, organize, and control
your business year-round.
About the Author
Steve Crandall, MCSE, is a principal of ChangeOverTime, a technology consulting firm in Cleveland, Ohio, that specializes in small business and non-profit organizations. He's also assistant professor of Information Technology
at Myers College and a contributing writer for Microsoft Certified Professional Magazine.