Most credit professionals have probably asked themselves at one time or another, “Am I being paid what I’m really worth?”
It’s a fair question.
Over the past several years, the responsibilities of many credit managers have expanded well beyond reviewing credit applications and collecting past-due accounts. Today’s credit professionals are often involved in cash flow forecasting, Enterprise Resource Planning (ERP) implementations, credit insurance, customer onboarding, dispute resolution, analytics, fraud prevention, and even strategic planning with senior management.
Yet while many jobs have evolved, salaries don’t always keep pace.
If you’ve been thinking about requesting a raise, don’t begin by asking your employer the question.
Start by asking yourself these five important questions first.
1. Has Your Job Quietly Become Bigger?
Take an honest look at your responsibilities today compared to just three or four years ago.
Have you taken on additional duties that weren’t part of your original position? Are you managing larger customer exposures, participating in executive meetings, supporting cash flow planning, helping implement new technology, or collaborating more closely with sales, finance, and operations?
If your role has expanded while your title and compensation have remained the same, it may be time to have a conversation.
2. Can You Quantify Your Value?
This is where many salary discussions succeed or fail.
Saying, “I work hard,” is rarely persuasive.
Saying, “I reduced our DSO by six days,” “I lowered bad debt write-offs by 30%,” or “I recovered an additional $500,000 in past-due receivables,” is far more compelling.
Executives appreciate measurable results. Before requesting a raise, prepare specific examples that demonstrate the value you’ve created for the company. The stronger your evidence, the stronger your case.
3. Is the Timing Right?
Even outstanding performance doesn’t always result in an immediate salary increase.
Is your company growing? Has it had a profitable year? Are salary reviews or budget planning approaching?
Understanding your organization’s financial condition and compensation cycle can significantly improve your chances of having a productive discussion. Sometimes timing is just as important as performance.
4. Do You Know Your Market Value?
Before deciding how much of an increase to request, do a little homework.
Review industry salary surveys, speak with trusted recruiters, network with fellow credit professionals, and, where appropriate, talk confidentially with your human resources department. Understanding what similar positions pay helps you make a realistic and well-supported request.
Knowledge builds confidence, and confidence leads to a better conversation.
5. Has AI Made You More Valuable?
Artificial intelligence is rapidly changing the way credit departments operate. Routine tasks such as drafting correspondence, summarizing financial information, analyzing aging reports, researching companies, and preparing reports can now be completed much faster than ever before.
Some credit professionals see AI as a threat to their careers. I see it differently.
The professionals who learn how to use AI effectively are becoming significantly more valuable to their organizations because they can accomplish more in less time while producing higher-quality work.
The key, however, is understanding that AI is a tool and not a replacement for sound business judgment.
It still takes an experienced credit professional to negotiate a difficult payment arrangement, evaluate a customer’s character, recognize subtle warning signs, develop effective credit policies, build strong customer relationships, and advise senior management on business risk.
If AI allows you to eliminate several hours of routine work each week, don’t simply use that extra time to do the same job faster. Use it to become more strategic, improve internal processes, strengthen customer relationships, and contribute at a higher level within your organization.
In today’s workplace, one of the most valuable employees may not be the person who works the longest hours.
It may be the person who knows how to combine professional experience with artificial intelligence to produce better business results.
Requesting a raise should never be based on entitlement. It should be based on contribution.
The strongest salary negotiations don’t begin with asking for more money. They begin long before the meeting with measurable results, thoughtful preparation, and a commitment to continually increasing your value.
After all, the future won’t belong to credit professionals who compete with AI.
It will belong to those who learn how to work alongside it.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
Image by freepik.com
