Imagine this: you’re offered a new role with higher pay at a new company. In an attempt to get you to stay in your current role, your employer offers to match your new compensation. You decide to take it as it will be less of a disruption to your life than starting in a new job.
You happily continue in your role but behind the scenes your employer may come to resent your new compensation. The increase may be out of alignment with the compensation ranges for your colleagues or even your supervisors and they start looking for your replacement.
You’ve now rejected the new role at the new company and are at risk of losing your current role.
Increasingly, significant compensation increases and promotions are documented in amending or revised employment agreements. These agreements may also contain temporary layoff provisions (allowing the employer to suspend your employment for 13 weeks or longer without pay) and termination provisions eliminating any entitlement to common-law notice.
Things to look out for:
- Is the new compensation above market rate? This is likely to “lure” you out of your current role.
- You get a raise, but are asked to sign a new employment agreement
- The new hire you’re suddenly supervising seems a little overqualified
The truth is that non-executive employees rarely have leverage in negotiating the terms of their employment agreements.
If you’re getting a big raise or promotion because other employers are noticing and interested in you – Congratulations! Our advice as you navigate this: Read the fine print in the proposed raise or promotion letter or even better…
Contact us and get excellent advice.