National Sales = higher salary?

[zeitgeist57]

I cover most of eastern Ohio and Western PA in my current job and stay busy driving to and fro...

 

I may be looking at a national sales position that will be a lot more market coverage and a LOT more flying...

 

Even within my own company, can I expect to be paid more for the greater responsibilities and travel/market coverage?

 

I'm going to be asking for MO' MONEY fo'sho...just want to hear from sales/consulting professionals that grew their coverage areas and how that affected take-home pay. Thx, CR!

[Sledhead36]

More responsibility= More Pay. Nuf said.

[Orion]

Yup. As a national rep I would expect my BASE to be around why the top performing regional rep made last year.

[iwishiwascool]

I've relatively recently trimmed my territory (and job title) by switching industries. It's all about the volume and margins on what you are moving. 3% of 10M widgets nationally should net you less than 25% of 3M widgets regionally.

 

All things being equal though, how is there even a question?

[zeitgeist57]

All things being equal though, how is there even a question?

 

Trust me...in corporate America, businesses demand your loyalty but don't pay for it. Just because I'm moving into a higher-paying field doesn't mean my base will raise commensurate with what the market would pay...

 

Like everything in this world: Ya don't get what ya don't ask fer...

[Diamonds]

 

All things being equal though, how is there even a question?

 

Ken, tisk tisk at you as I know you are a savvy businessman.....

 

Haven't you ever heard the saying "companies want to pay employees just enough so they don't leave"? (I'm not saying I advocate this... I'm just saying that it exists).

 

Here's a situation, I have a salesperson who is now a manager. He made 130K last year with most of his money coming from his commissions off of his book of business and about 10% came from being a new manager and getting "over-ride" on what his people produced. NOW, we did give him a bump for becoming a manager (15K increase). BUT, if he asked for another increase this year because he has taken on more salespeople and begun developing business in a small capacity..... I'd be forced tell him to go pound salt. He makes a good wage (and yes, he HAS EARNED EVERY PENNY). He is technically overpaid if you look at what your average business developer makes (80K-90K) or even your average recruiting sales manager (60K-80K). And, he has earned every penny (again, I don't have any issues when a salesperson kills it, we don't cap commissions here). But, in the end, I can't pay him (on base salary) more than he's worth..... Because at that point it's literally taking money out of the CEO's pocket (my boss) and putting it into that manager's pocket..... Otherwise I should replace him with a more reasonably priced employee (if he were to begin to demand things).

 

Believe me, I understand how some of you may think that is "cut-throat"... BUT, it's my job to ensure the business remains profitable to a reasonable level. Ever hear the term "don't take it personally, it's just business"? Ask the dude with all the Lambo's^^^....Business decisions are called "business decisions" because it's what is in the best interest of the longevity of the business.

 

All companies are different in terms of how they value employees. Some want to create a trusting environment that promotes self-sufficient & self-accountable modes of conduct that promote growth. Other companies use scare/fear tactics to motivate employees to not "do poorly".

 

I bet you can guess which companies focus on "praise for good performance" VS. "criticism for poor performance". That my friend is called "culture".

 

And, a culture of a business dictates things like "Do I get paid more for a title change.... or do I have to earn my extra money" because you gave me "the shot" to earn more money.

[RC K9]

Trust me...in corporate America, businesses demand your loyalty but don't pay for it. Just because I'm moving into a higher-paying field doesn't mean my base will raise commensurate with what the market would pay...

 

Like everything in this world: Ya don't get what ya don't ask fer...

 

Yup. Companies will work you like a dog for a laughable salary increase unless you fight for it.

[iwishiwascool]

So you believe they may pay for his increased road time, larger territory and increased responsibility with a better title and a promise of "potential"?

 

If they even make that offer they already believe he is a chump and will take advantage of him at every turn.

 

This is an opportunity for him to see if they are promoting him because the value he brings vastly exceeds the value he creates, or if they think they can get a stooge they can manipulate into the position and not have to pay nearly what a national sales director would cost on the outside. -I know you've seen the latter scenario in your recruiting experience.

[Diamonds]

and will take advantage of him at every turn.

 

You sound like a pessimist.

 

Unfortunately there are a lot of companies that are perceived this way. But, it might be a measure of maintaining profitability. That was a point I made... sometimes it's not because they want to be "dicks"... you know that much Ken.... I know you do. We spoke about it when you worked at T&A.

[Diamonds]

Yup. Companies will work you like a dog for a laughable salary increase unless you fight for it.

 

Have you ever thought that maybe it's because they can find someone else to do it at that "laughable salary increase" (especially in the climate of this current job market) and maybe it's just the employees inflated altitude?

 

 

....just putting food on the table for proverbial thought.

[RC K9]

Have you ever thought that maybe it's because they can find someone else to do it at that "laughable salary increase" (especially in the climate of this current job market) and maybe it's just the employees inflated altitude?

 

 

....just putting food on the table for proverbial thought.

 

Yes, I have thought that. And you know what happens, those people, typically young people, get their experience, and in 1-2yrs, move on to other companies making far more money. Prime example, my previous employer was a distributor (nationally) that specialized in food chain restaurants. I worked at the corp office in both logistics and purchasing for 7yrs. The early part of my time there, they primarily hired older people with experience. They changed their stance on that about halfway through my tenure there and went to hiring younger people out of college or minimal professional experience. The advantage there was you could pay them less, and you could train them the way you wanted, (no "bad" habits brought from a previous employer). What happened was they got these young, talented, hard working employees that got their experience, then left for better paying jobs.

 

One good friend of mine started there 5yrs ago at high $30's to $40k/yr. Was there 3yrs, got no raises or bonuses (company wide). He took his talents elswhere (another big company in columbus) for $52/yr. Spent about 2yrs there, I believe got one promotion and some other incentives, bringing him somewhere in the mid-high $70's/yr. About 9mo or so ago, he took another job with another big company in Columbus, now making in the ballpark of $100k/yr.

 

That's what happens when you don't see the true value of you employees, you have an absurd turnover rate.

 

3yrs later I go back to my previous employer to visit with people, I don't recognize 80% of the faces I see anymore.

[iwishiwascool]

You sound like a pessimist.

 

Unfortunately there are a lot of companies that are perceived this way. But, it might be a measure of maintaining profitability. That was a point I made... sometimes it's not because they want to be "dicks"... you know that much Ken.... I know you do. We spoke about it when you worked at T&A.

 

If you or I were offered a position in which we would have to work exponentially harder for the same money for nothing more than an inflated title, we would laugh. It has nothing to to with the fiscal realities facing the business and the margins they manage. If his question was: "How can I get an employee to take on more responsibility without paying him more", your argument would be more relevant. If a company cannot maintain profitability while paying me what I am worth then it is outside my responsibility to fix the business model and I'll be taking my talents to South Beach. (Which is almost exactly what I did minus 800 miles, btw)

 

Greater than 9 out of 10 people are employed right now, the old trope of "you should be grateful just to have a job" should be reserved for fast food employees and recent graduates.

[Orion]

Yes, I have thought that. And you know what happens, those people, typically young people, get their experience, and in 1-2yrs, move on to other companies making far more money. Prime example, my previous employer was a distributor (nationally) that specialized in food chain restaurants. I worked at the corp office in both logistics and purchasing for 7yrs. The early part of my time there, they primarily hired older people with experience. They changed their stance on that about halfway through my tenure there and went to hiring younger people out of college or minimal professional experience. The advantage there was you could pay them less, and you could train them the way you wanted, (no "bad" habits brought from a previous employer). What happened was they got these young, talented, hard working employees that got their experience, then left for better paying jobs.

 

One good friend of mine started there 5yrs ago at high $30's to $40k/yr. Was there 3yrs, got no raises or bonuses (company wide). He took his talents elswhere (another big company in columbus) for $52/yr. Spent about 2yrs there, I believe got one promotion and some other incentives, bringing him somewhere in the mid-high $70's/yr. About 9mo or so ago, he took another job with another big company in Columbus, now making in the ballpark of $100k/yr.

 

That's what happens when you don't see the true value of you employees, you have an absurd turnover rate.

 

3yrs later I go back to my previous employer to visit with people, I don't recognize 80% of the faces I see anymore.

 

Minnesota Twins.

 

This is a fine business model as long as it works for them. I know of several companies that are "ok" with higher turnover rate as opposed to higher salaries, especially in the medical field.

[Smokey]

Clay, in my experience a similar move would bring a small jump in base salary along with a much larger incentive/variable opportunity based on performance.

[iwishiwascool]

Clay, in my experience a similar move would bring a small jump in base salary along with a much larger incentive/variable opportunity based on performance.

 

This.

[Mallard]

So you just bought a BMW and now you get a promotion? Sounds like a winning formula.

[TTQ B4U]

Will be happy to chime in with a perspective once I'm not at work

[Akula]

I would expect potential upside to change but the base to remain relatively the same.

 

That being said, this is YOUR job too. Take more money. Period. If you are good at sales, sell them on paying you more.

[TTQ B4U]

Clay, these situations are market driven for the field you're in. Generally speaking making a move in position should involve more than just money, especially current money. It's my belief that it should be focused on near term and then long term earnings and positioning along the corporate ladder.

 

I completely agree that you don't get what you don't ask for. However, temper that with fully understanding what their expectations of the role are and how would meeting or exceeding those expectation then benefit you.

 

I tend to play the start me lower in base and much higher in variable and have never lost in that game. I also like MBO incentives too. I always put those in there as you know going in it's going to be a give-take situation, so change the rules and offer up something different. I do find it works. Creative and thinking outside the box is always welcome.

 

Ironically, I've gone the opposite way in life. From traveling internationally to North America, to regionally and now I manage a local group and while I still travel in a region of states, I make the same to more than ever before but it's all results driven and we're doing very well as team/company.