Poor pay and Potential Business closure - Strategy help pls!

[Lostprophet]

Hi folks,

I hope you can offer some advice.

In May 2014 I took on the role of head of accounting in the UK for a business based in Europe. I recently found out the UK business is looking to sell the asset I manage at the end of year which will make my role redundant unless another asset is purchased. This is unlikely however it is still possible.

I took the role on the basis there wont be much travelling. I have literally been away for 9 months flying back and forth. I have a young family and essentially this is not what I signed up for. The travel will die down going forward. The work is definitely not what was described at interview by the asset director. In fact I have taken on more work from someone who has left the business.

I have no benefits, I am approx. £5-10k below market rate and I received a 15% bonus in Dec which is okay. Generally the package is crap.

If the business closes down at the end of this year I still need my bonus as it pays my MBA course fees. I cant afford to be without it. I am sitting down with the new FD next week to discuss reporting but I do want to discuss the poor salary, no benefits, and generally how things will work for me. So far nothing has been communicated.

I guest I would like something on paper saying if the business closes down I will still get my bonus and a settlement payment. Maybe its too early to say something as the sale intentions are only on paper. Should I just tackle my salary issue?

Should I act or do anything. What would you advise. I am losing too many grey hairs over work and its giving my unnecessary stress.

Thank you in advance.

Regards,

LP

[Bullett]

Sounds rubbish, I'd be looking.

[edc]

I have been involved in various site closures, business closures and transfers. I would say, depending on the nature of the situation, that the business will not have much intention to deal with people on a one-to-one basis. Retention of staff may become an issue as the business intentions are announced or even earlier. The business may or may not put in place some sort of retention strategy to ensure key staff are kept. This will probably be a one size fits all approach initially with tinkering for individuals thereafter rather than worked on an individual basis from the off. You will know better than anybody here whether you are viewed as a 'key' person or whether you are replaceable. Often it is not the technical skills that are important but those with leadership skills who can lead groups of people through difficult times. Based on the limited information you have provided I would suggest you are too early to be talking about any sort of payment. As for redundancy, then I would expect your company to have some policy and calculation basis in place.

[Lostprophet]

The company has 1 employee (me) and one contractor. I manage a team which will be sold as a part of the asset. There is a director but he is employed by head office.

I suppose I will be needed to hand things back to head office. I guess they will be fair. All unsure. I guess I am just really concerned with the next 10 months so I can get my bonus.

Is it worth discussing the salary issue and asking for a pay rise. If they have to replace me they would have to pay more anyway!

[The Moose]

Lostprophet said:

The company has 1 employee (me) and one contractor. I manage a team which will be sold as a part of the asset. There is a director but he is employed by head office.

I suppose I will be needed to hand things back to head office. I guess they will be fair. All unsure. I guess I am just really concerned with the next 10 months so I can get my bonus.

Is it worth discussing the salary issue and asking for a pay rise. If they have to replace me they would have to pay more anyway!

How can you be the only employee, and there being 1 contractor, but you manage a team?!

[Lostprophet]

We are asset managers. We own and manage other businesses!

[edc]

Lostprophet said:

We are asset managers. We own and manage other businesses!

But how much does that asset or business need you? If all of the resource is self-contained and will transfer at sale then, without being harsh, you are replaceable. That doesn't necessarily put you in a strong position to make leaving payment demands.

[Lostprophet]

They will need me for the hand over and also hand over of my accounting of other entities to head-office. There is no one else available to do the task.

[edc]

I understand what you are saying, I am at the tail end of such a project. I realise there may not be anyone physically there to do the work but do you have specific product/task/process knowledge that makes you irreplaceable or at least the pain/cost to change is such that they would rather keep you? If it's just a body to do the work and they feel comfortable about getting somebody else in then you have less to play with. How you shape your demands depends on how much they need you.

[elanfan]

Perhaps you could ask for a rise to market rate and explain you don't expect this until nearer year end that way when you apply elsewhere you can genuinely state what your salary was. Making applying for the next role easier??

[Gargamel]

LP, lets just recap

- Think back to why you took the job, what are you doing now, that wasn't in the role described to you.

You say - Greater responsibility, higher travel content, more workload - greater uncertainty about the future.

Look at the original Job Description, think about what is and isn't in there.

Present a logical discussion to your boss, which says - you hired me to do these things, I am also now doing these things - in the future I will face a possible exit from the business, but you now need me to complete all of these things.

I joined on x salary, given my responsibilities and additional duties, I wonder if you would consider reviewing my pay and conditions.

If they won't - then walk
If they do - happy days.

Don't mention the pay data or market rates of what you think is fair, invariably you are wrong.....

[andy-xr]

Hang out for the redundancy payment

[Steve H]

andy-xr said:

Hang out for the redundancy payment

He hasn't been there five minutes, it will be next to nothing and it seems there's some doubt over whether he would get the expected bonus.


OP, I'd be pretty clear with the new FD that you need improvements and guarantees or you will have no choice but to start looking around.

[Lostprophet]

Thank you for the advice. Much appreciated. I reckon I am likely to get my one month notice which I will have to work and then 2 month payment Which would be £10k.

I think it's likely the redundancy will be by year end... But not real confirmations.

In the meantime I have asked for a £10k pay rise. It's fair I think as it brings me inline with market rate.

If they say no then I will have to find another job. I can't be £500 down a month with a young family and an Audi S5 to feed and take care of.

[andy-xr]

Steve H said:

He hasn't been there five minutes, it will be next to nothing and it seems there's some doubt over whether he would get the expected bonus.

I think if it's statutory then yes, but presented in the right way, it's possible to make yourself redundant with a payoff if it's in the best interests of the company, for cost saving or along those lines. Something I'd be looking to engineer if I was in the position of Head of Accounting.

[edc]

andy-xr said:

I think if it's statutory then yes, but presented in the right way, it's possible to make yourself redundant with a payoff if it's in the best interests of the company, for cost saving or along those lines. Something I'd be looking to engineer if I was in the position of Head of Accounting.

I wouldn't disagree with the thought but the success would depend on how much they really need you as I was trying to suggest earlier. If you've only been there a short time then it's unlikely that you have amassed enough intimate business knowledge to make you indispensible.