Do you feel like you're working harder and smarter each year but are only rewarded with minimal raises? Does your Board act uncomfortable with the idea of giving you a performance review? Are some influential members jealous because you earn more than they do? Keep reading and learn about... How To Get Paid What You're Worth
How do you convince your Board that you're underpaid? What steps can you take to enlighten them about the value of professional association management? Follow these steps and you may find you are much happier with your compensation package.
1) Educate Your Board About Your Worth.
The biggest obstacle Board members face when evaluating your worth is having a benchmark to compare your current compensation to industry averages. The Michigan Society of Association Executives produces an excellent Compensation and Benefits Survey which you should obtain and review to determine where you stand. Meet with your President and go over what your peers earn based on similar responsibilities, association size and experience. Remember, if you consider yourself a high performer, you want to be compensated in relation to the top quartile, not based on the average or mean.
2) Ask For A Designated Committee.
You've heard the phrase "too many chefs in the kitchen"? If your entire board reviews your compensation package and performance, you will likely see a smaller raise which results from compromise between opposing viewpoints. Ask your President to set up a three member Personnel Committee specifically charged with the task of evaluating your compensation package and performance. Actively recruit two members who are enlightened about executive pay, and will not be jealous or petty about paying you fairly. Make sure these individuals have current information about compensation for association executives so they know where you stand when compared to your peers. This committee should make a recommendation which is submitted to the board for approval. Try to avoid letting the Board renegotiate the committee's recommendation. If they do not agree with the recommendation, they should table the decision and request the committee to reconvene. You don't want the committee's generosity and hard work diminished by a boisterous board member who thinks you're on a "gravy train."
3) Insist On An Employment Contract.
You've undoubtedly heard both positive and negative stories about having a Contract. However, in the case of raises or bonuses, a contract can define and document promises and salary ranges established by the Board, and list performance criteria which must be met in order to receive a designated raise or bonus. The contract should provide parameters which the Board should work within, and protects you should leadership changes occur which places an inexperienced President in the position of evaluating your performance and making recommendations. If your Board pleads organizational poverty, tie your next raise to a financial goal and make it effective in six months if the goals are met. Establishing performance expectations gives you the necessary benchmark for justifying higher compensation based on meeting or exceeding organizational goals and objectives which are documented in the Contract.
4) Develop an Association Strategic Plan.
A three or five year strategic plan brings order to your Association and helps you understand organizational priorities from the Board's point of view. Most non-profits operate under very tight financial and human resource restrictions. A strategic plan prioritizes those objectives which require immediate attention. With your association goals clearly defined, it is easier to marshal the association's resources toward those objectives. It never hurts to send the Board periodic memos which update the success of an objective or project. Particularly beneficial are memos which outline your "behind the scenes" efforts to save money, form or salvage an important relationship, develop a new service, etc. These types of accomplishments are expected of executives, are typically not found in a strategic plan, and are easy to overlook if not documented by you. They are an excellent response if claims of a "lack of leadership" arise. During a review of your performance, referencing your association's strategic plan will make it much easier to point to your successes throughout the year and make your case for an exceptional raise and/or bonus.
5) Start early. Seek reinforcement.
Don't wait until year end to begin lobbying for a big raise or bonus. Look for opportunities during the year to have lunch with your President just to review how things are going and to reinforce that you are performing in the manner expected by the Board. Board members have a sneaky habit of whispering among themselves and not telling you what they don't like. Suddenly, you're in a performance review, and you are presented with a list of perceived mistakes or shortcomings - most of which were easily correctable - if you were only aware of the problem when it arose.
6) Don't lose due to technicalities.
Sometimes performance isn't enough to get the raise or bonus you want. Personal biases will always play a role in how you are perceived. Make sure you dress as professionally as your members do in a business environment. Remember, lifestyle choices involving unusual hairstyles, facial hair, body piercings or tattoos will affect how you are perceived. As an association executive, you represent an industry or profession. It is always better to err on the side of being too conservative in dress and appearance.
7) Watch For The Jealous Board Member.
You know who I'm referring to. Right now each reader can name at least one Board member who is angry he or she did not get your job when you were hired. They know better than you in every instance, and are quick to criticize every decision. Other potential problems result when the association executive happens to earn more money than many of your members. I've actually heard Board members exclaim "Holy, cow we're paying him/her how much?! I'll never earn that much in my job!" These are the board members who think any raise you receive is too much, an will try to negotiate the Board downward with regard to your compensation. Try to keep these individuals off your Personnel Committee at all costs.
There are certainly other strategies you can utilize to get that big raise or bonus. If you have a success story you would like to share with our readers, e-mail Eurich Management Services and I'll include a summary for our readers (without identifying you or your association).
Until next time...
