I have often said, “Procurement is often the bridesmaid, never the bride.” Well, the time is finally here. Procurement is the bride, and procurement professionals are the center of attention! All eyes are on us. We are at the heart of value creation during the pandemic. We are keeping our businesses going by keeping the inbound supply chain going. We were able to respond, and now, we are taking a leading role in the recovery and renewal of the supply chain. We are collaborating and leveraging strategic supplier relationships. We are risk managers, and we are mitigating risk!
Is now a good time for procurement professionals to negotiate a raise? Yes!
Benchmark and know your worth
How much are you getting paid relative to your peers? Salary is impacted by the title and scope of your responsibilities, level of your education, the industry you work for, the size of the firm, and, most importantly, your geography. How do you benchmark?
- Join the Procurement Foundry (free to join) and get access to the salary survey. The survey was real data provided by the membership. It is the most comprehensive salary survey I have seen in a very long time.
- Contact recruiters who specialize in Procurement and Supply Chain. It is important to build relationships with recruiters who specialize in your functional area. By building these relationships, you remain top of mind for key roles, and you can gain insights into knowing your worth and getting market intelligence.
- Know the various components of total compensation – salary, bonus, tuition reimbursement, training and certification programs, medical benefits, vacation, flex time. What value do you put on these components?
- Speak to HR friends outside of your company. They have access to compensation databases and can advise you.
Know the value you bring
What value did you bring to your firm during the pandemic? You need to monetize your contributions and tie it back to the revenue stream. Did you save the company money? Was there a cost avoidance when you negotiated? Did you come up with an idea to reduce waste or inefficiencies in the supply chain? What was the associated value of the idea? Know how to calculate this number. Work with your finance colleagues if you need help.
If you are contributing above and beyond the scope of your title and work, is a promotion in order? Can you take on more responsibility to allow your boss more time to work on strategic initiatives? Asking for promotion often means a raise.
Getting to Yes
You have prepared for the negotiation with your boss. What if he or she says no? How do you get to yes? You don’t want to issue an ultimatum because that will harm the relationship. Listen to any of the roadblocks the boss may put up. There is no money in the budget, or we have a budget crisis due to the pandemic. Company results are off track. Getting to alternatives is a great way to get more value for yourself.
Your company does not want to lose you. Research suggests that it can cost up to two times salary to replace a professional employee. Negotiate alternatives, such as 5% now and 5% in six months. Tie compensation into the completion of a key project. Ask the company to pay for a certification program or course of study. Tie other alternatives to reframing your role, getting more comp time, getting expanded benefits. Whatever the option, you want to get to a workable solution to get to yes.
Regardless of what you negotiate, the critical thing to remember is to negotiate something more for yourself now. Do not wait. Now is the time for all procurement professionals to start the conversation. Use this time to recognize your value and advocate for yourself.
Thank you for reading. If you would like to learn more please email me at anna@pondviewconsulting.com.