Medium sized startup, getting salary increases beyond what I think is reasonable
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luckysh0t
Posts: 30 Forumite
Yeah cheers for the advices
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Why would you worry? If they are paying you above market rate then just take the money as long as it is there and get made redundant when and if it happens. Then get another job at market rate.
I honestly don't see what your concern is.0 -
Some people favour job security over pump n dump schemes. I don't think that's a serious reply, given I've posted here obviously I'm worried so I'd rather just know where I stand in relation to employment rights than anything else.
Of course it was a serious reply, someone has taken the time to respond to your question sensibly as far as I see. Perhaps the best thing to do is take the additional money over market rate and save it. In the meantime if this employer is making you feel unsettled then the best course of action is to start looking for a more secure post."You've been reading SOS when it's just your clock reading 5:05 "0 -
Some people favour job security over pump n dump schemes. I don't think that's a serious reply, given I've posted here obviously I'm worried so I'd rather just know where I stand in relation to employment rights than anything else.
Your job is always insecure unless you work for the government. Anything can happen at any time. Companies fold, get bought out, merge, restructure, and people get made redundant. Employment rights will not protect you in case of redundancy.
Them paying you less won't make your job more secure, and if you think the company has already targeted you as someone expendable, then it's not secure however much they pay you. As said above, if you don't like it find another job for less money - although the sensible thing is to wait and take the extra money for as long as possible and then do that.
People change jobs. Just don't assume you are at this company for life; take advantage of it while you can.0 -
OP, is your username a typo? Given the very strange nature of your perceived problem i'm going to assume it is! :rotfl:,Fully paid up member of the ignore button club.If it walks like a Duck, quacks like a Duck, it's a Duck.0
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I regard as excessive increases year on year relative to everyone else in order to allow a 'culling of the fat' when inevitable consolidation takes hold and we are bought out and stripped down.
I don't think your concerns are justified.
In the context of start-up companies backed by outside investment, those companies are desperately trying to grow into larger companies. They are evaluated by growth of market share, not by profitability. They would typically be bought to grow them, not to downsize them.
The concept of private equity investors buying a company and stripping the cost out is what happens to happen to much larger more established companies who have become bloated over time. Not to venture capital backed start-ups.
On job security, I think you have to be realistic. You are working for a loss-making start-up. In this market outside investment only usually gives the company enough cash to sustain 6-12 months of run-time. If the company fails to achieve an exit or fails to demonstrate sufficient growth to justify a further investment round, it will go under. You are never going to have long-term job security working for a start-up.
Take the higher salary.0 -
Nice problem to have right?
Except in 2 years I've been promoted from 'normal' to 'senior' and subsequently been handed a 28% salary increase whilst the startup backed by outside investors has yet to turn a profit. I sense due to our unusually flat structure that the veneer of a middle management level is being carved out (incl me) with what I regard as excessive increases year on year relative to everyone else in order to allow a 'culling of the fat' when inevitable consolidation takes hold and we are bought out and stripped down.
I have outlined my concerns that my increase is an outlier and not commesurate with others of my experience in the co - but obviously the senior manager concerned just replied with bluster about how great I am. I am a realist and acutely aware of how things are in the external job market and I doubt I could command the same salary there.
What are an employee's rights in this admittedly strange scenario of not wanting too big a salary that would be ripe for cutting if 'strategic realignment' etc where to take place?
This is not even a vaguely realistic dilemma (DMinus -must try harder).
Your rights are the same as any other employee in any other company. Roles are made redundant, not salaries.Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0 -
Some people favour job security over pump n dump schemes. I don't think that's a serious reply, given I've posted here obviously I'm worried so I'd rather just know where I stand in relation to employment rights than anything else.
People get lied to all the time in employment matters.
In December I was told my FTC was a shoe-in for better opportunities - in reality I've seen jobs I could apply to within the organisation as just as short than my current role - alongside watching the jobs going external. I would never be able to apply anyhow as I work solely on my own - again something they neglected to mention until it was to late.
If you want a serious reply (if you had a posting history they would love to chuck that back at you if you haven't the right name, so you got off lightly may I say) then see a solicitor that specialises in employment law.0 -
This is not even a vaguely realistic dilemma (DMinus -must try harder).
Your rights are the same as any other employee in any other company. Roles are made redundant, not salaries.
Do you think these are being posted by employees of MSE? I really think there's been a sudden upsurge in these vague posts that seem more keen to promote "discussion" than ask actual concrete questions, and it has corresponded with what I perceive to be a fall off in usage of the forum.0 -
What the others said. Take the higher salary. Live your life and spend your money as if you earned what you think you should be earning, and save the rest as provision against eventual unemployment. Or against your fear that they will cut your salary later (though this is almost certainly groundless).
And do it now before they give the job to someone who is less of a worrier.
It is highly unlikely they will try to cut your salary later. If they decide you are overpaid they will just make you redundant and hire someone else. People really don't like big cuts in salary and most employers wouldn't even try it. In addition, the CEO can't suddenly decide that the salaries they've given their middle management are extravagant without calling their own salary into question.
That last bit may explain why they want to pay you so much money. If the startup consists of a bunch of toilers earning £20k each plus a CEO on £100k, that looks much like a CEO spending the venture capitalists' money on himself unjustifiably. If on the other hand you have a pyramid of toilers earning £20k, middle managers earning 50k, board members earning 80k and the CEO 100k, the CEO's salary starts to look like part of a sensible remuneration structure.0 -
ScorpiondeRooftrouser wrote: »Do you think these are being posted by employees of MSE? I really think there's been a sudden upsurge in these vague posts that seem more keen to promote "discussion" than ask actual concrete questions, and it has corresponded with what I perceive to be a fall off in usage of the forum.
I don't think its MSE necessarily, but the thought has struck me. Its been going on for a long time, before Sangie left, and she hinted she thought it was students asking to beef out their essay answers. Some of the scenarios are so bizarre. And then there are the socially inadequate who post purely for a reaction (eg yesterday's racist thread).Originally Posted by shortcrust
"Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."0
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