Navigating Performance and Salary Reviews in Uncertain Times - Insights from Charles Handley, Professional Services Recruiter and Career Adviser

There are some ways to take the stress out of your performance and salary review while also achieving a mutually beneficial result for you and your employer if you plan and have the right considerations.

Financial performance across professional services has been mixed this Financial Year. Law firms are doing well overall, while engineering and accounting firms are facing greater financial pressures. Critical to all firms, economic uncertainty lingers and leadership teams are scrutinising expenses.

As a result, securing a pay rise (or promotion) may be challenging this performance review period, despite cost of living pressures giving rise to demands for a healthy CPI related increase. With 17 years of experience as a specialist recruiter in professional services BD, marketing and communications, I've guided thousands of professionals through the complexities of career progression and salary negotiations in some of Australia’s most prestigious legal, accounting, and engineering firms. I’ve put together some of my thoughts to help you navigate your performance and salary review.

Understanding today's financial climate

Recent hefty increases in salaries, particularly in senior business development roles within the legal sector (up to 25% in FYs ’22 & ’23), are unlikely to continue due to the economic slowdown caused by rising interest rates. Recognising this new reality is crucial as you prepare for your performance and salary review, as is acknowledging it verbally during the review discussion so that you appear appreciative of your employer’s position.

Continuous preparation is key

Effective preparation for your performance review should occur all year round, not just before the scheduled review. Regularly documenting your achievements, areas of improvement, significant conversations - including both positive feedback and discussions about development - is vital. This ongoing record not only helps you keep track of your progress but also provides concrete examples of your contributions and growth when review time comes around. However, ensure that you are careful to position achievements as just those – achievements above and beyond the expectations of your day-to-day job requirements. Many people I speak to, particularly those in the Gen-Y and Gen-Z cohort, feel that they deserve a pay rise or promotion for simply turning up for six months or doing the basics of their role!

Learn by osmosis from senior peers

Observe the high achievers within your firm, particularly those in roles one level above yours. Note if your performance aligns with or exceeds the expectations of those at higher levels. Presenting these findings during your review can strongly support your case for a raise or promotion, demonstrating your readiness to operate at a more advanced level. Generally speaking, you will need to have operated above your station for a period of time before you achieve a promotion, proving your worth before you are awarded a new title and pay rise – you’ll need to proactively seek out opportunities to take on more work or put your hand up to take on additional projects.

Skilfully managing technical and interpersonal demands

In sectors like legal business development, where salaries are very high in comparison to other industries due to the necessity of sophisticated stakeholder management skills, it's crucial to balance showcasing your technical achievements with demonstrating your relationship-building capabilities. Both aspects are integral to your role and should be highlighted during your review. Subtly and gradually gather positive partner and line manager feedback when you receive it. Don’t forget to document when you have acted on constructive criticism effectively, too.

Engage thoughtfully and be adaptable

During your review, let your employer lead the conversation, but come prepared with insightful questions and well-considered viewpoints. However, remain adaptable; based on their feedback, you may need to pivot your approach. Being open to constructive criticism and showing a readiness to incorporate feedback are essential traits that demonstrate your commitment to personal and professional growth.

Planning with strategic patience

In the current economic climate, the path to progression might not be straightforward. Propose practical alternatives such as setting specific mid-year review goals that could facilitate future advancements. This shows foresight and an understanding of broader economic impacts on your organisation or the practice or industry group/service line you support, particularly in light of the anticipated cycle of interest rate easing later in the calendar year and into 2025.

Navigating your career successfully in these challenging times requires a proactive approach and open communication. Continuous documentation of your journey and an adaptable stance during reviews can significantly enhance your professional development and standing within your company.

It's not all about money

Professional services marketing, BD and comms employees are paid exceptionally well compared with their peers in other industries as I will mention below and simply asking for more, year on year, won't go down well in challenging economic times as it shows a lack of commercial awareness and appreciation for the business. Speaking with my own peers who recruit marketers in other industries, you're more than likely on a good wicket already, despite the quirks of partnership environments.

Consider whether your firm will offer non-monetary rewards for strong performance (not just for doing your job), such as addition leave, formal coaching from a paid trainer, additional flexibility, paid study or other paid benefits.

If you are looking for personalised guidance in relation to your salary/market work, your career development within your current firm, or if are considering new opportunities, feel free to contact me for a tailored discussion and advice session to ensure that you solidify your career position – [email protected] / +61 499 956 666.