Pay raise?
Dear Dr. Mac,
Our Accounting Clerk has been going to school in the evenings and recently earned her Bachelor’s degree in Accounting. While I am happy for her, I am not sure how to handle her request for a pay raise. She also wants to have her job title changed to Accountant. She is one of two Accounting Clerks in the Finance Department. She already earns more per hour than the other Clerk. She pointed out that she now has the educational background to contribute more to the job and has been doing many of the things an Accountant typically does, but without the salary or title. I have given her progressively responsible job duties over the years to keep her interested and challenged. I also give her a pay raise every year as part of our company’s annual performance reviews. Do I give in to her request? While I would hate to lose her, I am not sure we need an Accountant. What do you suggest?
-Cornered Carol
Dear Cornered Carol,
Get a card and bake a cake! I am always up for a celebration to recognize an employee’s success. Earning a college degree is quite an accomplishment, especially for a working adult. Congratulate her on graduating with a workplace celebration.
Now, about her requests, you are not obligated to give her a pay increase or change her job title. However, you mention adding to her job duties over time. It may be appropriate to stop and re-evaluate the job’s content. If she quit tomorrow, what background requirements would you seek in an applicant to successfully perform the job? How is someone in the Accounting Clerk position expected to contribute to the company’s business objectives? Ask your Human Resources Department, or engage the services of an objective compensation consultant, to evaluate the job’s content. A job evaluation helps determine how the job may have migrated from the original Accounting Clerk position. A job evaluation will also identify comparable positions’ prevailing salaries for your geographic area and industry. If the Accounting Clerk’s job has changed substantially, Human Resources or the consultant will most likely recommend assigning the job to a new salary range. This may mean more earning potential for the employee. A job evaluation can also identify common job titles used by employers.
Share your plan with Accounting Clerk to have her job evaluated and ask for her cooperation with the process. Let her know the company considers several factors when making pay and position change decisions such as present and future business needs, market conditions, the company’s ability to pay and how the position compares internally with others. A job evaluation will help determine if change in pay and title are appropriate. Also, tell her you support her accounting career aspirations and hope she sees long-term potential with your company. Should, at a future point, her interests and expectations outgrow the company’s needs, you would respect her decision to make a job change and hope to have the opportunity to make it a successful transition for everyone.
-Dr. Mac
