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Going Exempt to Non-Exempt -- Opportunity to Renegotiate Salary?
ConfuseousPrime
Registered User regular
Registered User regular
Almost 1 year ago I started in a new position at my company after an extensive interview process. I was really happy, as it was with an up and coming division in the company, thus setting me up on the fast track for lots of future opportunities.
At that time, I received a modest increase(approximately 15 percent) in pay as well as a few other benefits. Through one my other colleagues who interviewed (but did not get the job), I realized that I could have pushed for more (I received a ballpark figure of what they budgeted for the position). I was mildly perturbed at the time but I blew it off for the following reasons:
1) I had no-one to blame but myself for not pushing harder;
2) See Opportunity, listed above;
3) I figured I could give it a year and then ask for more, after I've proven myself.
So here's the catch: this afternoon my boss e-mailed me to let me know that HR wants to move me from a non-exempt to exempt status. Basically what this means is that I'll be moving to a salaried position within the company, become ineligible for overtime, but be given comp days and an extra week of vacation in exchange.
During this e-mail my boss also had some praise for the work that I did, and also told me that they would be generous about OT and comp time. We agreed to talk it over on Tuesday.
I was planning on waiting on Performance Review Season, but does this seem like a good time to open the salary conversation to anybody? My reasoning is that I'd be moving from a position where I'd become eligible to make more money by working more to a position where I wouldn't be able to do that anymore. Since that is the case I'd prefer to be compensated for the change.
Just for context I wanted to throw in the following measures:
1) I don't think that my asking this would put me on any shit lists somewhere assuming I don't behave like a total ass.
2) We just hit our targets for this year (which means that we're very profitable as a unit).
3) I'm fairly well known for being a hard worker and receive decent amounts of praise from various people, all the way up to the VP of our division.
As a corollary, assuming that I do ask, should I mention that I know what they initially budged for the position and that I'm coming in under that?
Apologies in advance for the vagueness, I don't want to mention specifics like salary and position because of the (potentially) sensitive nature of this post.
At that time, I received a modest increase(approximately 15 percent) in pay as well as a few other benefits. Through one my other colleagues who interviewed (but did not get the job), I realized that I could have pushed for more (I received a ballpark figure of what they budgeted for the position). I was mildly perturbed at the time but I blew it off for the following reasons:
1) I had no-one to blame but myself for not pushing harder;
2) See Opportunity, listed above;
3) I figured I could give it a year and then ask for more, after I've proven myself.
So here's the catch: this afternoon my boss e-mailed me to let me know that HR wants to move me from a non-exempt to exempt status. Basically what this means is that I'll be moving to a salaried position within the company, become ineligible for overtime, but be given comp days and an extra week of vacation in exchange.
During this e-mail my boss also had some praise for the work that I did, and also told me that they would be generous about OT and comp time. We agreed to talk it over on Tuesday.
I was planning on waiting on Performance Review Season, but does this seem like a good time to open the salary conversation to anybody? My reasoning is that I'd be moving from a position where I'd become eligible to make more money by working more to a position where I wouldn't be able to do that anymore. Since that is the case I'd prefer to be compensated for the change.
Just for context I wanted to throw in the following measures:
1) I don't think that my asking this would put me on any shit lists somewhere assuming I don't behave like a total ass.
2) We just hit our targets for this year (which means that we're very profitable as a unit).
3) I'm fairly well known for being a hard worker and receive decent amounts of praise from various people, all the way up to the VP of our division.
As a corollary, assuming that I do ask, should I mention that I know what they initially budged for the position and that I'm coming in under that?
Apologies in advance for the vagueness, I don't want to mention specifics like salary and position because of the (potentially) sensitive nature of this post.
ConfuseousPrime on
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I wouldn't do this. They already know that you're being paid less than what they budgeted, so the only thing that you accomplish by bringing it up is suggesting that you feel cheated. You also run the risk of letting your annoyance about accepting a smaller salary early on shine through, which would hurt your image a little.
Yes, it is a valid point, but a salary negotiation isn't a debate. Rather, it's about selling yourself, and you do that by concentrating on positive attributes and future prospects rather than missed opportunities and oversights.
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If ive got it backwards (ie, youre being given benefits now) then no, thats a horrible time to ask for a raise as theyre basically giving you one even though you dont get the cash in your hands.
If ive got it all wrong, i have no idea.
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edit: I don't agree with Zeon's conclusion, though it's true you will be costing them more in benefits. The nature of your employment is changing... it's almost a promotion. If you had negotiated aggressively when you came in, and they only grudgingly agreed, then I wouldn't push matters. As it is, it seems a natural time to bring up the salary discussion.
I currently have the regular benefits package through my company (insurance, retirement, ect..) and that doesn't change as I move over.
Hope that clarifies it a bit!
Previously, if you worked 7 days a week, you'd be paid for 8 days (due to the 1.5x overtime).
If you work 7 days a week under your new contract, it sounds like you'll be paid 5 days and get 2 days off (which is in effect pay for 7 days).
You'll probably also find that if you're just working an extra 1/2 hour here and and there under a flat salary situation, you're just going to be paid for your core hours unless you've been specifically instructed to work that extra time and have negotiated the time-off beforehand.
This definitely sounds like they're adjusting the contract in a manner that's not beneficial to you, which makes this a great time to talk about increasing your base salary to compensate.
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An extra week of vacation amounts to a ~2% raise, so factor that in as well.
Are you also moving from hourly to salary? Thats the only way to become exempt from overtime, as far as ive ever heard.
Powerpuppies, the only reason im saying its a bad time to ask is youre basically getting a 30% raise (thats the average cost of benefits for an hourly worker, ~30% of their salary). So asking for more money ontop of medical and pension and all the other extra bonuses you get when getting benefits really would seem greedy.
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It probably depends on who you're asking for more money. Many of my past bosses would have been unlikely to see someone asking for what they're due as greedy, even if they're getting a lot and asking for more. They would take the extra second to see what he's asking for is reasonable and then shrug and make a decision, but it wouldn't reflect badly on him.
He already said earlier that he's already getting the normal benefits package. Given that, it seems like it would seem to be an appropriate time to bring it up, depending on how many hours they usually had you work.
If you do take the salaried position at what they offer (for an increase barely over inflation) be prepared to ask for a clear outline of your responsibilities and hours. I've seen people get shafted badly when moved from hourly to salary because they had a 2nd job or something where they really couldn't work the non-paid overtime. And for some reason the overtime never went away and increased. So, be careful about that.
The number one biggest rule when negotiating for a raise is this: Don't ask for more money because you want it. Don't ask for more money because you know the company can afford it. Ask for more money because you're an awesome asset to your company, and you know they want to encourage excellence and success like what you bring. Which means: Pitch it by talking about the strides you've made and what you do for the company. Don't pitch it as a benefit to yourself.
I think at this time it might be prudent to throw in one more extraneous detail. Mid way through the year I had a situation where I needed to move halfway across the country. This put me from an office position to a work from home position (job title or duties did not change). Since it was a pretty big concession on their part (at least as far as I can tell), I was thinking it might be in bad taste to push for more.
Maybe that's just my imagination making that a bigger deal than it is though.
Don't just go in and say, hey i want some more money though. It too easy for them to say, "I am sure you do" and "no"
Have some justifications with you. What have you done above and beyond your pay that would qualify you for more cash? Be specific. Have you saved any money for the department, facilitated their hitting their goal early in a specific way that sets you apart?
Are you taking on any new responsibilities? Or are you just looking for more money for the same job? The fact that you accepted less then you could have gotten does not mean that you just deserve more.
Unless it's a super shitty company, they won't hold it against you for asking. If you don't get more, salary is still a better deal. You'll be amazed at how great it is to not be held to the mighty clock. Come in a few minutes late? no problem - stay a few minutes more. Want to take a long lunch on a slow day? no problem!
Most companies are still bitch about this. Which is why salary is almost always a bad idea unless it's more money and you ask for flex time (doesn't even have to be major flex time, just if you come in an hour late or something).
Though one of the other reasons I see companies do this is because of telecommuting. They can't keep track of the time of telecommuters as well as they thought they could, or, they can't really make sure about the time.
He brought up his concerns in a professional manner and we worked it out so that he would stay non-exempt through the end of the year so that he could make arrangements to prepare for the exempt status and the salary adjustment.
Being professional and expressing your concerns are always welcome in a professional setting. If your boss isn't professional then i would hold off, otherwise go for it.
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so yeah, get your licks in if you can because salary is often a screwjob
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