Executive Outlook: Securing a 2022 Promotion or Increased Reward

Executive Outlook: Securing a 2022 Promotion or Increased Reward

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Executive Outlooks: Securing a 2022 Promotion or Increased Reward

It’s that time of year again. Businesses will be wrapping up their actions for this year and planning for the next, making decisions about strategy, objectives, and skill requirements. Many organisations choose the end of year as an opportunity to reward the year’s high performers with increased compensation, promotions, new responsibilities, or projects for individuals to take on as they enter the new year. When managed astutely, it’s a win for both parties, really. The executive gets to go into the festive break with a bit of good news to celebrate, and the organisation can ensure they have the right people in the right roles for a fresh start in Quarter 1.

But how can you secure a new position or title, or increased reward package? If you are looking to do this at the executive level, here is what you need to know.

Advancement at the Executive Level

For executives, promotions and raises don’t happen quite as often or as easily as they would at other levels. Once you reach a certain point in an organisation, there are often fewer opportunities and a limited amount of career moves you can make without leaving the organisation. For many, the only way ‘up’ is to accept a partnership, secure a directorship, or aim for a seat on the board.  If the latter is of interest, you can read our previous Executive Outlook blog which discusses the process at length here. Board seats are highly coveted, highly selective, and are not the right move for every executive, but at the top of the organisation these are often the only positions one could be ‘promoted’ to.

That said, that does not mean there are no moves for an accomplished and established executive to make. Rather, it means that you may have to rethink what you might have in mind for your ‘promotion’ or enhancing your remuneration package.  In both cases, it is worth taking time to outline a strategy for negotiations. You might want to enter discussions by thinking about your approach from both a professional and wider holistic perspective rather than just focusing on position or salary.

Executive ‘Promotions’

When we typically think of a promotion, we think of climbing the next rung of the organisational ladder, moving a step higher than we previously were. Progression is very straightforward in this model. But like we said, once you reach the top of the ladder, there’s no next rung to climb. Instead, you can choose to step off the ladder and onto the ledge, moving laterally. You’ll stay just as high as you were while on the top rung of the ladder, but in a different spot. From this spot, you might have more solid footing, or perhaps a different vantage point. It’s different, yet does not compromise the hard work you put in to climb this high in the first place.

Essentially, you should be thinking in terms of ‘enhancement’ rather than ‘advancement.’ There are many ways for executives to enrich their career without having to move up or down, or change their career, industry, or organisation altogether.

Career fulfilment can come from a wide range of sources, and some moves you may be able to make within your current organisation include going after that aforementioned board position, taking on more leadership responsibilities, or spearheading a big project or new initiative, perhaps related to the company’s ESG, CSR, or transformation goals. You might choose to enrich your career outside of your organisation by pursing an NED role, establishing yourself as an industry voice or thought leader, offering your time in a mentorship programme, looking into opportunities within academia as a guest lecturer, and so on. Every professional activity you participate in contributes to your bigger career picture and helps to build your reputation as an executive. While more executive responsibilities may not be available at this time or you may not be a clear choice for them now, taking on additional responsibilities at work or establishing your value in the industry outside of your own company may help build your case for consideration when the opportunity arises down the line. Even if that is not your long-term goal, adding variety and enrichment to your current role may help you get more out of your career and enable you to feel more fulfilled.

Executive Remuneration

In the current economic climate, organisations are competing globally for the best talent. The departure of an executive can be a serious setback for business continuity and performance, and more so if he or she joins a competitor. Organisations are therefore increasingly prepared to invest in keeping executives “on board” or rewarding those who have proven valuable to the organisation using financial incentives.

These incentives may come in various different forms. The most obvious option is a salary increase. However, most executive roles are compensated at a rate that is on par with the market, and therefore, salary rises at the executive level are less common than they are at other levels of the business.  Instead, the organisation may offer stock options or some sort of equity stake. Alternatively, you may receive a one-off bonus if the organisation is in a position to offer one.

In some cases, it’s likely you won’t have a say in which form your renumeration takes. The offer will most likely be determined by the organisation’s current financial position and their ability to pay. It is also worth remembering that remuneration at the executive level is often carefully balanced against shareholders’ interests. Executive pay has been at the heart of some recent cases of corporate mismanagement, with escalating pay levels and high-profile pay issues prompting unprecedented shareholder attention. As a result, the organisation may be overly cautious, or executive renumerations may be dictated by structural organisational policy. This is important to be aware of, as it may have an impact on what your organisation is willing or able to offer you financially.

That said, many organisations are open to offering financial incentives if they are in a position to do so. In which case, it is important to ask yourself how prepared you are to present your achievements and articulate the role you played in helping the organisation meet its aims.

Advice for Advancement

If you are ambitious for more responsibility or renumeration in the new year, you want to ensure that you are creating a win-win situation in your negotiations. It’s not only what you did the past year to prove that you deserve recognition, but what you’re eager to contribute in the future.  Progressing at executive level requires a combination of personal traits, positive outward behaviors, leadership competence and trustworthiness.

If you are looking to take on more leadership opportunities, what examples can you provide to demonstrate that you are capable? When trying to secure a new opportunity, it is essential to be able to show that you can work at the level you are aiming for. Are you handling your current responsibilities well enough to add more on top? Are you fulfilling your current operational or leadership duties well enough to take on more, and are your team successful enough under your leadership to warrant you leading others? Prepare some solid examples ahead of time, whether you plan to make your case in an annual review, an end-of-year wrap up meeting, or an informal discussion with a key stakeholder who holds influence. Being able to demonstrate conclusively how you are contributing to the growth and development of your team or the organisation’s future will go a long way.

Beyond proving that you already provide value to the organisation, it is beneficial to demonstrate how you might continue to contribute to the organisation’s success moving forward. Instead of thinking in terms of the organisation rewarding you for the sweat equity you’ve already put in, approach it from a position of why they should invest in you as part of the business’s future. What can you provide that might add value long term? What sets you apart and increases your worth compared to your peers? What new industry insights can you bring to the table?

This is where upskilling can be particularly valuable. If you can bring future-focused skills to the table, that will help to increase your professional value. Perhaps you have already been working on your personal digital brand, and are becoming more visible in your industry as a thought leader. The strength of your personal brand reflects well on the organisation and may provide a bit of leverage when attempting to make your case.

Determining the best next step for your next career requires thoughtful planning, realistic self-reflection, and the right approach. Maybe you know exactly what you’re after and are prepared to go for it straight away, or maybe you don’t have a plan beyond feeling like you want more and need to do something. Don’t rush to ‘just get something done’. This is your career and for you to find the enrichment you’re looking for, you’ll need to be completely clear on what opportunities or activities might provide it. That way, you’ll be more successful not just in the new year, but well beyond.

If you need neutral yet experienced insight to help determine your next move in taking your career to the new level, get in touch with  one our team for a complimentary career discussion throughout January.