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“Why doesn’t my company consider inflation when determining my pay increase?”

What this employee is asking is, shouldn’t my annual increase percentage at least match the cost of living? And as management is forever touting the company’s ”pay-for-performance” philosophy, shouldn’t my increase be higher than that, given that I’m a good performer?

Have you ever been in a situation where an employee complains to you that their pay increase is no better than the inflation rate? Or worse, that it’s lower? As a further aggravation they might ask you how the company can say there’s a pay-for-performance policy when all they do is grant increases that no more than match the inflation rate? It’s like treading water or running in place. It doesn’t seem fair or like a reward for good performance. Shouldn’t everybody receive at least an increase equal to the inflation rate? Shouldn’t increases reflect more than just a cost of living increase for the higher performers?

The truth of the matter is that it’s common practice for companies to only give a side look at inflation (cost of living) when determining their annual increase budget. They do make note of it as a reference point and to compare against a final decision, but what they’re actually focused on are two prime considerations: 1) competitive market survey data that tells them what everyone else is paying for like jobs in their area; and 2) the expense (annual grant and fixed costs) to maintain the desired competitiveness.

Companies routinely promise to pay competitive rates and, as such, will analyze what they consider the marketplace to learn what other companies are paying for jobs (base salaries) and what they are granting for increases. Their so-called “promise” does not include the granting of inflation-proof increases, or even an implied obligation to reflect the cost of living in their analysis. Their intent is to pay employees a competitive wage – including increases – and by “competitive” they mean what others are doing, not necessarily what is happening out there in the world of inflation.

If affordability is an issue for any given year, it’s likely that maintaining competitiveness will have to suffer. A quick review of salary actions over the past three years will confirm that.

Fairness is in the Eye of the Beholder

Is that a fair way to manage compensation? Well, let’s imagine your name is on the company door. How would you spend your money? It’s likely you would seek to pay the lowest amount possible while still attracting, motivating and retaining qualified talent for your business. That strategy doesn’t imply decreasing pay levels but, as the owner, you would want to allocate your substantial payroll expense as effectively and efficiently as possible to staff your business with qualified and engaged employees. It wouldn’t make good business sense to spend more than you need to, be it for bricks and mortar real estate, raw materials or employee compensation.

Consider the market for talent similar to a purchase at a retail store. How frequently would you pay more than the commonly accepted price if your extra money gained you no added value? Chances are you would not often take that approach.

Other Perspectives

Now let’s consider this issue from the employee’s point of view. What factors weigh heavily on their minds when considering the potential for pay increases?

Most employees expect management decisions on compensation to reflect either the inflation rate (cost of living), the average increase for their industry/geography (typically as pointed out by newspaper “factoids”), or – if the company had a good year – a share of the financial success. You can be sure, though, that the figure employees have in mind is the highest of these three possibilities. And lest you forget, that figure is only for the average performer; better employees should receive more.

Now this view is not necessarily wrong, from their perspective, and one can certainly not blame employees for a viewpoint that puts their interests first. However, companies typically maintain a “this is a business first” strategy, one that seeks to minimize controllable expenses without losing sight of their competitive pay target. The goal of paying competitive wages is not likely to be overturned by changes to the cost of living, newspaper snippets or a “feel good” moment following company success.

Another factor to consider is that employees are comfortable with changing their reasoning from year to year, while companies are stuck on the same track. So when inflation goes up or down, the company has a good or not so good year, or the media is touting industry averages, employee expectations may likely swing from one argument to another, rationalizing a consistently more aggressive pay increase strategy.

Now for a little tongue-in-cheek: turnabout is not considered fair play. Employees would not be pleased if the size of their increase were to fall with their chosen economic indicator. It should only rise. They would similarly object to smaller increases if the company hit a rough patch or if inflation nosed downward. It should be no surprise that employees would want their cake and to eat it too!

However, management strategies tend to be consistent over time, continually focusing on the marketplace and its affordability to maintain a posture of providing competitive pay and pay increase opportunities.

So how do you avoid a clash of employee expectations vs. management strategy? If companies would do a better job of communicating their pay philosophy they would be able to allay the employee guesses and assumptions that always accompany the grapevine rumor mill. Employees would know in advance what to expect. They might not like what they hear, but the employer/employee relationship would be improved by some straight talk about how pay increases are determined.

Source: http://www.hrmtoday.com/human-capital/compensation/whats-the-fuss-about-cost-of-living/

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More often than not these days, to make a major sale you have to make a group sales presentation -- and compete against the other group presentations being made. Here are some tips for making your presentation the winner.

Getting Started

You've created a unique solution for the prospect. Make it clear that it’s unique and not another dog and pony show by putting the prospect's fingerprints all over the presentation: Use the language it uses for its functions and processes, the terms used in its industry, and its logo and other company graphics. Prospective customers are always concerned about how long it will take a supplier to get up to speed and whether there will be a culture fit. By speaking its language comfortably in the presentation you'll help allay its concerns about both of these issues.

Building Your Team

Learn the makeup of the team that will be hearing the presentation. You should have as many people there as the prospect has. Match their functions as well: If their CEO, IT director or financial executive is there, your should be too. Their specialized knowledge may be needed. Plan to have your proposed account executive lead the presentation. Most team presentations are led by senior member of the team -- but for a sales presentation it should be the person who will be the account executive. This will give that person an opportunity to demonstrate leadership. Organizing the Presentation Start the presentation by introducing the team members and briefly describing what they'll cover. Then show you understand the prospect's goals by describing how you learned them. Segue on to how and why the training solution you’re offering will meet those goals. Then describe the particular advantages your company offers. Never describe your company's credentials before you talk about the prospect.

As you create the presentation, review the list of customer people who will be there. Be certain that what you're offering will meet the needs of everyone -- and of any others who will be influencing the sale.

The document you leave behind should use a design that matches the presentation’s visuals. It should be detailed and thorough -- but the presentation itself should describe your solution in broad strokes, focusing on strategic issues and your main points. Among the most common mistakes seen in presentations is providing so much detail that what's essential gets lost.

Determine in advance whether the presentation will be delivered standing or sitting. Standing is better because it allows for movement that can demonstrate leadership and energy. If it's a sit-down meeting, be certain that everyone can see your visuals -- particularly the prospect's key decision-maker.

Each presenter should introduce the next one so the transitions are smooth. The handoff should link what was said with what's coming so the prospect can follow the presentation's development easily.

Sharpening the Team’s Presentation Skills

The better the visuals, the better the presenters have to be because the team, not the visuals, must be the center of attention. It isn’t the visuals that will distinguish you from the other presenters; it's how well your team communicates on a human level. It must project warmth, integrity and an emotional commitment to helping the prospect meet its goals.

Your team can't communicate on a human level if they’re reading from scripts. The presentation should be rehearsed so well that team members can deliver it while looking at the audience in the eye, one person at a time. Warm and steady eye contact is essential for building trust. Encourage everyone on the team to turn on the full force of their passion for the solution you're offering and to deliver the presentation with a high level of energy. This will help demonstrate commitment and keep the audience involved. There should be changes in voice pitch and timing, and constant movement of the entire body, hand gestures, head turns and facial expressions that help underscore important points.

Be certain that team members avoid leaning from side to side, fussing with hair or jewelry, or using "keep away" signals like crossing arms or backing off from the group. They also should avoid using non-words such as um and ah or rushing through their parts, both of which are common errors of inexperienced speakers.

Alert the techies and numbers-crunchers on the team to avoid talking over the heads of the people listening or using their own jargon. These team members also may be the ones most likely to feel that "the facts speak for themselves,” so they may have a particularly need for presentations skills coaching.

Presenters often rehearse their part of the presentation by reading the script silently to themselves -- and as a result fail to show the dynamism a successful presentation requires. Advise your team members that when they rehearse their roles they also should rehearse the body movement and voice changes they'll use to emphasize important points. Bringing it all together this way will help them get their roles down pat and eliminate their need for a script. Be sure to have one or more team presentation rehearsals. Having an audience present at rehearsals will generate valuable feedback on how the presenters are coming across.

Delivering the Presentation

The speakers must keep ”reading” the audience to determine how they’re being received and be ready to adjust their presentations if needed. Maybe the prospect's people are becoming inattentive. That calls for the presenter who’s speaking to shake things up, perhaps by asking a question, either real or rhetorical. Maybe puzzled looks show the audience doesn't understand what's being said. The speaker should backtrack, explaining better with an example or an analogy. Maybe the audience is really excited about something. The speaker should delve further into the topic. You want the presentation to stay on course -- but you have to make detours when needed.

You can anticipate some of the questions that will be asked. Agree in advance about who will answer which questions. Prepare answers that are compelling and concise -- and which tie into one of the major points the presentation makes.

That All, Folks! Finish with a flourish.

Untrained presenters often pull together their papers and mumble a thank you, relieved that the ordeal is over. In contrast, the proposed account executive who’s leading your presentation should take the floor to sum up the major points that were made, express appreciation for the opportunity to present and make it clear, with voice and body movement that signals energy and commitment, that your company wants the business.

Source: http://www.humanresourcesiq.com/corporate-learning-alignment/articles/sharpening-your-team-s-presentation-skills-to-make/

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