The New Realities of Pay, Performance & Career Path Management

The new economy is redefining and challenging some norms about pay and performance, increment and promotion that many of us have been accustomed to. I'd like you to know this and the impact on your career here in CLSF and elsewhere, should you one day decide not to stay with us.

 

My message to you is to stay; relevant, wherever you are.

Obsolescence

If you are a twenty-something graduate and think you won't be obsolete for the next 30 years, think again. The changes that have been brought about by the information age will render all of us obsolete in double quick time if we do not keep up with knowledge and skill set changes.

 

The old ways of doing things have to be constantly re-examined. Kill the SOW if necessary (SOW = Same Old Way). We have to constantly keep up and re-invent ourselves.

Changing mode of pay & performance

Whether you have an MBA, have worked for 20 years in your life or have worked with us for a decade is no longer relevant. The old model of pay being determined by your qualifications, experience, age and years with the firm will become less relevant. One's pay will increasingly be tied to one's ability to create value to the firm.

 

Performance in the new economy is a function of quality, relevance of output, responsibilities, value creation and the ratio of input to output.

 

Charles Handy, in "The Empty Raincoat", quoted '1/2 x 2 x 3 = P'; which means that productivity and profit for the firm is derived from half as many people who are paid twice as well to produce 3 times as much. Handy postulated that all businesses would be going this way: offering good, expensive and productive jobs, but there would be fewer jobs.

 

In the same vein, staff will have to dispel the idea that annual increments are automatic.

 

Our clients pay our salaries and increments. And our fees must be a function of the value we give - more value = higher fees. Hence, our pay can only increase if we produce more value in our work. Examples of "more value" include holding more responsibilities, managing a higher output, producing higher quality work or producing higher value work.

 

Older staff need to recognise the risk of being overtaken by younger staff. I've encountered people over 40 years of age who cannot find good jobs. Younger staff on the other hand, should not lose sight of career path management. A lack of understanding of the new reality of pay and performance, coupled with the buoyant job market, will give them a false sense of job security.

Managing Performance

With so much emphasis on performance, how can you manage your performance? There are 3 components you can work on - benchmark performance, learn and manage your career path, and adopt a role model.

 

Benchmark your performance against professional or company standards, your peers in the same industry, your seniors or your role models. Benchmarking allows you to gauge where you stand.

 

Adopt a continuous process of learning and managing your career path. Continuous learning is imperative. Sharpen your technical skills, and acquire new soft skills and management techniques. Equip yourself with the basic skills, constantly relearn and cultivate the habit of life-long learning.

 

Managing your career path starts from identifying what is a successful career to you. Only you can define what is a successful career to you, or for that matter what is success. I recommend everyone to read Stephen Covey's book on 7 Habits of Highly Effective People. He says: "Begin with the end in mind." I couldn't agree more. To succeed, you need a goal, a plan, execute it and constantly update it.

 

Define what success means to you (what is your goal?) and identify a role model if you can. The role model is useful as a guide for you to reach your goal. We can borrow the olden-day apprenticeship model here. (See chart)

How Olden-day Apprenticeship Works Today

Identify Role Model
Study Role Model's Footsteps
Review for Suitability & Compatibility
Adopt a Master
Plan Learning Path and Objectives
Do the Learning
Review Progress & Relevance
Review Career Path/Plans

Study the role model's success, understand your own strengths and weaknesses vis-à-vis the role model's and plan over a 10-year horizon. Be audacious in your goal but realistic at the same time, then work like a possessed person towards your goal. It helps to know some ingredients for success in whatever you choose to be - the 4Cs:

1. don't complain - just do it
2. don't compare - there is no perfect job
3. don't chicken out - just bear with the pain; remember, no pain, no gain
4. don't be complacent - there is no over learning

For those whose goals are the top jobs, realize that the top jobs are not for everyone. Warren Buffet identified the 3 basic traits of people holding top positions as intelligence, integrity and energy.

 

Intelligence encompasses your knowledge, skills in learning, thinking and problem solving, plus effort and perseverance.

 

Integrity ensures that you do not seek short-term gains at the expense of your life-long career.

 

Energy refers to your will-power and doggedness to do what you love or to love what you do.

Conclusion

Whether you are hankering after the top job or not, it is good to focus on career path management. After you have identified what your goal is, align your goal with the company you are working in.

 

Keep the end in mind and persevere. There will be pain along the way, bear with it and I'm sure you will enjoy at the end of it.