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Anyone go from non-exempt to exempt - what pay increase?

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  • Anyone go from non-exempt to exempt - what pay increase?

    My company is going through some major restructuring. I'm likely being moved from a non-exempt pay grade to an exempt pay grade. Curious if anyone here works in HR or has been through this before that can offer some guidance on what is a reasonable bump to make up for lost OT plus I would assume somewhat of a raise as well. I ran some numbers and historically my OT has averaged 15.2% of my pay over the last 3 years.

    First number I heard thrown out (although not an official offer) was a 13% increase over my current base - doesn't even make up for the lost OT, let alone any kind of annual raise which based on my performance review i should be receiving this year. Trying to build a case to ask for more but not really sure where to start besides looking at salary.com type numbers which i don't think will get me far in a company as large as mine as they do their own extensive research on comparable salaries.

    Any advice super appreciated!

  • #2
    That's a tough one. And you're correct...I wouldn't go in there quoting salary.com figures for similar positions. They'll just tell you to go take one of those positions then. They've got their own market comp data, and it's probably conservative. Instead, you have to sell the value you add to that position above and beyond the basic requirements and responsibilities.

    It's going to be hard to sell asking for exactly what you made with overtime, too. My understanding is that overtime is never guaranteed. It may be required, but never guaranteed in terms of being given "x" number of additional hours.

    I don't think 13% is a bad place to start. I would ask about the performance eval separately. If that happens before this restructure, and it goes well, I'd use that as ammo to ask for more money.

    I don't know what you do, but other things to think about in coming up with a counter offer are things like getting additional vacation time or being bumped up in the accrual rate, bonus or incentive eligibility, employee stock purchase, etc.

    If it doesn't work out and you feel like you came up short, start looking. The data on wage growth is disgusting, and employees need to fight back. Turnover can really hurt, and if you can find a better deal elsewhere, go shop it HARD.
    History will judge the complicit.

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    • #3
      Our company is pretty systematic in how they do vacation, bonuses, etc. There really isn't much room for negotiation there unless you're very high up. Plus I already get over 25 days a year and I struggle to use them all even with an annual vacation, few long weekends and sometimes just taking a week off to catch up on things at home. I'd really rather have the base pay.

      Sucks because we've had a lot of turn over in our department. I've had 2 managers this year and its about to change again. Makes it tough to sell my value to someone who doesn't know my job or my performance very well.

      Totally get what you mean about OT not being guaranteed. Its been an interesting transition because they made a rule that there would be no ot the rest of the year companywide back in Sept. and I've easily logged 40 hours of OT since then and will get another 30 before the end of the year. My job is one that honestly doesn't make sense to be non-exempt because I'm regularly needed outside of business hours and on the weekends. There is no one else that does a role similar to mine, it can't just be covered by someone else unless they are going to hire a second me (in which case, why not just give me half the salary to be exempt?). Every time a project comes up, I point out that they said no OT and they say this can be an exception... which is great, but also makes me want to make sure I'm not getting the short stick when the switch happens. Probably my last opportunity to negotiate something this big.

      I'm not opposed to changing jobs but having kept my eyes open for quite some time, I'm also pretty aware that there isn't much of a market for my role in my current location and almost certainly not at my current pay. I'm not in a bad spot, just want to maximize where I can!

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      • #4
        we got no raise at all unless you were very new to the company and were not a few steps up on the pay scale. But the one (only) good thing is we got better benefits, like a long term disability policy. Although, that is hard to get, you may never need it and your OT may have generated more dollars for you than a LTD policy. Good luck. Ours was done "to make staff feel like true professionals", code for "we are majorly saving money".

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        • #5
          Originally posted by FLA View Post
          we got no raise at all unless you were very new to the company and were not a few steps up on the pay scale. But the one (only) good thing is we got better benefits, like a long term disability policy. Although, that is hard to get, you may never need it and your OT may have generated more dollars for you than a LTD policy. Good luck. Ours was done "to make staff feel like true professionals", code for "we are majorly saving money".
          I would def take better benefits! We used to have great coverage and its been tiered down from 90% with a $3k deductible to 80% with a $7k deductible over the last 4 years. I need my ot just to be able to afford my declining healthcare coverage haha.

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          • #6
            except in our case it was more benefit than benefits plural, lol.

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            • #7
              Sorry, the outlook is not good. What I see is the Executive Suite increasing their base salary and bonus system, staff increases under 3%. DH was moved to 'administration,' nice title, more responsibility, teeny pay raise, lost all OT benefits and ultimately worked 60 hrs per week for a lot of compliments and glowing performance reviews.

              If he tried to say 'no' to requests he was letting down his colleagues and making them lose status. If he agreed to head yet another program, his VP got a bonus for enhancing income. Can you ask for non monetary benefits like a company paid vehicle, paid education enhancement, better bonus structure?

              The only argument you can make is evidence of how your efforts adds to their bottom line. Had DH better understood what would result, he would have gone back to re-examine every program and the profit that resulted from his innovation and leadership. He left as soon as his contract expired.

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