Know Your Worth: Compensation Negotiation

handshakes-business

As I contemplated my next career move, I knew it was important to know my worth in the market. In a sense, the concept was foreign to me since I had worked 27 years in engineering for the public sector. In securing that job, the only thing that was negotiated was the time of employment.

My desire to have a second career outside of engineering into academia drove me to get meaningful experience as an adjunct professor. Of course, I felt my core competencies were strong as a professor. I had about ten years in academics working part-time. Yet, I also knew that obtaining a full-time tenure track would be highly competitive due to the limited amount of these treasured positions and the number of applicants. 

I personally knew of qualified business professors who could not obtain a full-time faculty position. To increase my marketability, I continued to secure new skill sets and to follow market trends. One of the biggest trends working for me was that many institutions were looking for new faculty who had demonstrated working experience.

Yet, in order to determine my worth, I had to actively apply for academic positions and go through the interview process. With every interview, each prospective employer provided me with a missing piece of my market worth. However, I got this insight by being assertive by asking meaningful questions like “what part of my application package attracted you to me as a candidate.”  

This transparency was contagious. One dean even told me my prospective rank (i.e. salary) in his organization. All of these pieces were critical in helping me negotiate my final position as a full-time faculty because I understood my worth in the marketplace.

In today’s competitive environment, working professionals need to know their worth so that they can be compensated appropriately and they can market themselves toward better jobs. In fact, professionals need to know how to market themselves and promote their personal brand in order to maintain their market worth. Downsizing and layoffs are a way of life for most U.S. businesses.

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The Human Factor

man-fingers-crossed

Businesses that don’t under the value of their human capital resources are in error.  In spite of the power of technology and automation, it takes people power to make business operations work.  Failing to understand this reality will leave an organization vulnerable to their competition. This week we will cover human factor buy-in, the last element in socio-technical systems.  

Organizations must shift their paradigm to viewing workers as more than mechanical parts for their organizational objectives. Gareth Jones and Jennifer George, authors of Contemporary Management, maintain that managers have a responsibility to effectively oversee their human resources which includes the people involved in the creation and distribution of goods and services. [1] Given this reality, the ability of managers to leverage their talent is crucial.  

Talent management is the process through which employers anticipate and meet the needs for human capital.[2]  Peter Cappelli, author of Talent Management, explains how mismanaging employees in organizations is problematic for an organization’s sustainable success:  “The failures in talent management includes mismatches between  supply and demand on the one hand, having too many employees, leading to layoffs and restructuring, and on the other hand, having too little talent, leading to talent shortage. [3] 

In the United States, talent management miscues fall into the following categories:  (a) Do Nothing Mode – makes no attempt to anticipate human resource needs and develops no plans for addressing them and (b) Reactive Mode – relies on outside hiring to meet human capital needs, but this approach has begun to fail now that the surplus of management talent has eroded. 

 https://www.youtube.com/watch?v=jTMs3hp-LFU

Trust is the cornerstone of any meaningful relationships in organizations.  Yet, many employees do not trust their organizations due to the lack of employment security in most companies.  According to a USA Today poll, nearly half of those interviewed said that corporations can be trusted only a little, or not at all, when it involves looking out for the best interest of employees.[4] 

Michael Hackman and Craig Johnson, authors of Leadership: A Communication Perspectives, argue that a leader’s credibility is directly related to the quality of his relationship with followers.[5] Marios Katsioloudes, a researcher specializing in Socio-technical analysis, explains that as profitability of mechanization increases, the importance of technology is implied while there is a devaluation of the workers. U.S. businesses cannot point to the lack of employee performance on a global front for mismanagement errors.[6]

Japan, a long-time benchmark for American companies, is being defeated by American employees; today, the average U.S. worker puts in 36 more hours per year than Japanese workers (1,825 vs. 1,789). 

Over the last two decades, balancing work and home life have been difficult since Americans have added 200 hours to their annual work schedule.[7] Employees want to be valued. 

Jeffrey Pfeffer, author of The Human Equation, acknowledges that organization success is directly related to implementation, and this capacity comes from the workers, how they are treated, their skills, and their efforts as it relates to the organization.[8] 

Leaders should see followers as more than mechanical parts for their organizational objectives. Managers assume that giving employees new technology is enough to keep them happy. Likewise, leaders should view followers as a vital component of the socio-technical system. 

Discuss the concept of human factor buy-in for today’s organizations.

 © 2013 by Daryl D. Green                                    

 


[1] Contemporary Management by Gareth Jones and Jennifer George

[2] Talent Management by Peter Cappelli

[3] Talent Management by Peter Cappelli

[4] “Leading others while supporting organizational values” by Daryl D. Green

[5] Leadership: A Communication Perspectives by Michael Hackman and Craig Johnson

[6] “Leading others while supporting organizational values” by Daryl D. Green

[7] “Leading others while supporting organizational values” by Daryl D. Green

[8] The Human Equation by Jeffrey Pfeffer

 

Outsourcing the Great American Dream

In the 1957 classic movie “Desk Set, the technology revolution begins. The setting takes place at the “Federal Broadcasting Network.”  Bunny Watson (Katharine Hepburn), is responsible for researching and answering questions at the organization’s library.  With a merger pending, the company looks to automation.  In fact, organization ordered two computers  called “Electronic Brains.” Richard Sumner (Spencer Tracy), the computer inventor, is brought into the network in order to phase out the library functions in lieu of the human staff.  Bunny Watson fights to demonstrate the value of her human existence.

In a hypercompetitive environment, many businesses are outsourcing major functions rather than perform them in-house.  Today’s businesses have built elaborate systems for better efficiency and effectiveness.  Of course, they are driven by the quest for increasing profitability.  Robert Jacobs, Richard Chase, and Nicholas Aquilano, authors of Operations & Supply Management, suggest that operations management has been a key element in the improvement in productivity in businesses across the world.  Many times executive focus on the major expense to operate – labor.

It’s a simple equation:  productivity equals outputs divided by inputs.  If organizations can reduce their inputs for their operations, they can increase output (more profit).  Therefore, companies seek to reduce their inputs to obtain ‘more get.  Two of the chief strategies are to outsource non-core functions abroad or add new technologies to generate new efficiencies. These strategies are aimed at reducing labor costs, primarily people.

Since 2000, over 3 million U.S. jobs in the manufacturing sector have been moved abroad to countries like China, India, and
Korea. Yet, few executives worry about the aftermath of outsourcing initiatives.  The remaining workforce is shell shocked and
stressed since they are required to do the work of the laid off workforce.  Sadly, many supervisors feel that these workers should be happy to have a job.

Gareth Jones and Jennifer George, authors of Contemporary Management, maintain that one of the most important resources in all organizations is the human capital component. Many people wonder if American’s businesses cannot compete in
manufacturing and other high tech industries, will they forever forgo the Great American Dream for next generation of workers.

How do organizations stimulate their workers while outsourcing key components of their organizations abroad for greater efficiencies?

© 2011 by Daryl D. Green