One of my favorite commercials is from Monster.com where a child states, “I wanna claw my way up to middle management.” I remember the first time I became an assistant manager. I was so excited to send my new business cards to my whole family (even though they live in Colorado and couldn’t do business with me) and I readily gave one to anyone who would take one. We all love the American success story about the person who started in the mail room and worked his way up to CEO—what a great story. Everyone should strive to accomplish that, right?

What happened to simply being “the best” at what we do? Why if we are considered “the best,” do we have to get promoted to feel valued? By that rationale, Peyton Manning should be the coach and not the quarterback. Imagine what would happen to the Indianapolis Colts if Curtis Painter took over and Manning was simply his coach? Do you remember when Magic Johnson tried to coach? He failed miserably, yet no one would argue that he is one of the greatest basketball players of all-time. The role of being a coach is different from being a player. Just like the role of being a manager is different from being a contributor. Don’t get me wrong, there are a lot of contributors who have what it takes to be a manager and I firmly believe that leadership can be taught; but, it is not for everyone and that should be ok.

So, what do you do? You can’t stop promoting from within your organization because you do not want employees to feel stagnate.

Here are some considerations:

1. How does a promotion impact your customers?
2. Think about how you show that you value your employees. Does everyone know how they contribute to the success of your business?  What is their impact on your business?
3. Do a job analysis and consider job enrichment and/or enlargement versus simply promoting people into management. Few people want to do the exact same job each day, but it doesn’t mean the only way to change that is through promotion.
4. Develop a management and leadership development system that may include training, coaching, or mentoring for high potential employees.
5. Consider a pay-for-performance compensation plan as many people want and take a management position simply because it pays more.
6. Ask employees how they feel about their contributions and their role within your organization.

There was a time in my career when I would have ranked advancement as the most important part of my job. As I have matured in my career, I value the impact I can have on an organization. It didn’t come naturally and it took a lot of work. I now chuckle a bit when I hear titles dropped in conversations. My current title will not raise the eyebrows that my CEO title once did, but I can tell you confidently that I would have a much larger impact on your organization today than I would have six years ago.

Jeremy King, SPHR is the Business Development Manager at FlashPoint.

Image: Matt Banks / FreeDigitalPhotos.net

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Here it is again—that wonderful time of the year! No, I’m not talking about the holidays (though they are indeed pretty terrific), but instead the time when many of us conduct annual performance reviews for our employees and provide merit increases for the next year.

If you’re a manager and are budgeting for merit increases, FlashPoint has helpful data for you. Julie Bingham, our senior consultant, regularly keeps up-to-date with the latest compensation-related research and trends. Julie’s a member of WorldatWork, the national compensation and benefits professional association, and she recently received results from WorldatWork’s 2010-11 salary budget survey:

• The national average merit increase in 2010 was 2.5 percent, and the national average projected 2011 increase is 2.9 percent.
• For the central U.S., the average increase in 2010 was 2.5 percent, and the projected 2011 increase is 3.0 percent.
• For Indiana, the average increase in 2010 was 2.5 percent and the projected 2011 increase is 2.9 percent.

According to Julie, this data includes those organizations that offered or plan to offer no increase (that is, it includes zeros), and if you exclude the zeros, the data comes in slightly higher.

Julie also notes that other sources, including the 2010-2011 Mercer U.S. Compensation Planning Report, indicate similar trends.

Earlier this year, Julie wrote an article on regaining control of your compensation programs, with six steps you can take to assess and adjust them. As you consider your merit increases and other compensation-related issues in the new year, it’s a great resource. You can find it here.

Meanwhile, best wishes as you wrap up your year-end HR projects (including those performance reviews—mine is December 15) and as you prepare for 2011. And amid all the hoopla, don’t forget to take time to enjoy the other activities the season has to offer! Happy holidays!

George Hanlin is a consultant at FlashPoint.

Image: nuttakit

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