Next Year's Pay and Promotions Are Being Decided Now
How to make your case easy for someone else to make
THE MOMENT
So you had a strong year. You know it, your team knows it, and you're pretty sure your manager knows it too. And right now you're doing what almost everyone I work with does in October. You're keeping your head down, closing the year out, and trusting that the work will make the case for you when the time comes.
If that sounds like you, I want to walk you through what's actually happening over the next six weeks, because it may change how you spend them.
THE MECHANICS
At most firms, the promotion and pay decisions people hear about in January get decided in the fourth quarter. Managers are asked who they want to put forward, and slates get drafted. Then your name gets discussed next to other strong people, often by senior leaders from other groups who have never seen your work up close.
What gets said about you in that room is usually a few sentences from your manager or your sponsor. Nobody is reading your year line by line. They're listening to someone describe it, and that same description feeds the pay recommendation. So the leaders who move up tend to be the ones whose case is easy for someone else to make, and that's often a different list from the people with the biggest year.
A senior MD I worked with had two reviews in a row that said almost the same thing: valued, top of band, recognized. When we talked, he was describing himself in those exact words. I asked him what the next level actually required, and he couldn't tell me, because nobody had ever written it down for him. And if nobody has defined it, nobody can argue in the room that you've met it.
A strong year without a stated case gets described as a strong year, and the firm already pays you for strong years at your current level.
THE MOVE
So here's what I'd ask you to do this week. Treat this cycle as a business case, and write your case in two sentences.
The first is the problem you own and what it produced for the firm this year. The second is what you're ready to own next, and why the firm is better off with you owning it. Then read them out loud as if your manager were saying them in that room. Keep working on it, and get it in front of your manager before the end of October. See if your version matches theirs.
KEY TAKEAWAYS
• At most firms, the promotions and pay people hear about in January get decided in the fourth quarter.
• In those discussions, your year is described in a few sentences by your manager or sponsor, and the same description feeds the pay recommendation.
• A strong year without a stated case gets described as a strong year, which the firm already pays for at your current level.
• Write your case in two sentences: the problem you own and what it produced for the firm, and what you're ready to own next and why the firm is better off.
• Get it in front of your manager before the end of October and see if your version matches theirs.
FAQ
When are promotion and pay decisions made at banks?
At most large financial institutions, the promotions and pay people hear about in January get decided in the fourth quarter. Managers put names forward, slates get drafted, and candidates get compared against peers, often by senior leaders from other groups. Timing varies by firm, so it's worth asking your manager when your firm's process starts.
What is a promotion case?
It's how your manager or sponsor describes you when your name comes up. I teach it as two sentences. The first is the problem you own and what it produced for the firm this year. The second is what you're ready to own next and why the firm is better off with you owning it.
Why doesn't a strong year lead to a promotion?
A strong year shows you're doing your current job well, and the firm already pays for that. A promotion needs someone to argue that you're ready for more. They can only do that if the next level has been defined and you've shown it.
How should I talk to my manager about a promotion?
Start with the case, not the title. You can say, "I want to make sure you have what you need to represent this year. Here's how I'd describe it. Does that match how you see it?" Then ask what they'd need to see to put you forward.
What does a sponsor do in promotion decisions?
A sponsor argues for you in the rooms where decisions get made, usually alongside other sponsors arguing for other strong people. They use whatever they have, so the more specific their picture of your year, the better they can represent you.
How do I find out what the next level requires?
Ask. Many senior leaders have never had it written down, which is why the same review language repeats year after year. Ask your manager what would need to be true for them to put you forward, and write the answer down.
MAKE YOUR CASE EASY FOR SOMEONE ELSE TO MAKE
If you want a clear read on what the next level requires from you specifically, book a 30-minute Introduction & Assessment.
ABOUT BRIAN RELLA
Brian Rella is the founder of EverNext and a leadership advisor to VPs through C-Suite in financial services. After 25 years at Wells Fargo, BGC, Bloomberg, HSBC, JP Morgan, and UBS, he helps senior leaders own the mandates their firms most need and be recognized and rewarded at the next level.