I started a new job with a new company a little over a year ago.

Anonymous

March 14,2023 at 2:47PM UTC

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I started a new job with a new company a little over a year ago. Not once during the interview did the recruiter, hiring manager, or interviewers communicate that the company's policy is not to give yearly raises. Since every company I have ever worked for has always giving raises, both cost of living and merit, it never occurred me to ask.

In my first year, I achieved all my goals, received multiple awards, and recognition for my contributions, yet at my EOY review, I was told, this is your first year, so we can only give you an average ranking.

Had I known the no raise policy and that my first-year contributions will mean nothing for your EOY review, I probably would not have accepted this job. I question the honesty of the company's hiring practices.

Extremely disheartened and disappointed. Do I start looking for another job now, where my contributions will be valued? Do I stay and run the risk, that next year, it will be the same, and I will be doing the same job for even less money. Thoughts? Recommendations?

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AnonymousMarch 14,2023 at 5:06PM UTC
Run, don't walk, to your personal computer and start a job search. What you've described is ridiculous at best! How does anyone get ahead?
AnonymousMarch 14,2023 at 5:37PM UTC
I have never in my 45 years of working been guaranteed a raise or cost of living increase. Did some employers grant them? Yes but not all. So I never counted on them.
AnonymousMarch 20,2023 at 12:54PM UTC
explain why you would not please. yes the cost of living goes up alot , top tier bonuses go UPPPP but he lower class we have trouble puttin groceries on the table. new hires are being payed more than you. i fully expect an increase every year. why would i not, i work hard.
AnonymousMarch 20,2023 at 1:19PM UTC
That’s been my experience as well, in my 33 years working
Barb HansenMarch 14,2023 at 5:46PM UTC
Many companies don't give merit raises - they only give "across the board" raises (everyone in the organization gets a small percentage increase) so it's worth, as you have learned, to ask how raises are determined during your interview process.
So what to do now?
I would set a meeting with my manager and ask what policies/procedures and what processes are used to determine bonuses, and I would ask what I needed to do to ensure that I could get a bonus/raise.
It's okay to ask this question and your manager should be able to communicate those policies/processes. If your manager can't communicate how bonuses/raises are determined and they are not willing to get you that information, then you might want to start looking for another job.
AnonymousMarch 15,2023 at 6:34PM UTC
This is not a generous company so yes you risk working at the same rate for years to come.
Mary PoolMarch 19,2023 at 4:11PM UTC
Run. This company is not worth a "star's" time. A company that doesn't give at least a cost-of-living raise in these inflationary times is also not worth your time. I am a huge "pay for performance" person. You performed they did not pay. The message is loud and clear; they don't care about performance. For a "star," that is a terrible environment to be in.
KelleyMarch 20,2023 at 12:10PM UTC
I would reach out to HR to verify whether this is a year one situation or if there is any glimmer of hope at all for even a COL raise next year. (By the way you talk, you may already know the answer but it doesn’t hurt to inquire.) if this is for sure a consistent thing, start looking for something else. If nothing else, companies should at least be giving COL raises (preferably merit as well), because living on the same wages isn’t sustainable in this economy.
ChristineMarch 20,2023 at 12:21PM UTC
I probably wouldn't stay. You've put in a year and done great work and just got an average review - whether or not they give raises, they clearly don't properly see and value the work you do. I've never heard of a place that doesn't do raises. If that is the case they should have shared that unusual info up front.
AnonymousMarch 20,2023 at 12:24PM UTC
Thank you for sharing! Because it's so standard in my experience, I don't know that I would think to ask specifically about the frequency of reviews and raises. Another thing to remember.
AnonymousMarch 20,2023 at 12:29PM UTC
The same thing just happened to my daughter, had an excellent review, was told that bonuses would be the basis of their compensation, not even cost of living raise and it was disappointing and she spoke to someone that had been at the company for a while. He said yeah until you’re more senior you have to leave and come back like he did and many others which seems to be the norm now because even when you get a promotion companies will only give you 5% increase, yet, they’ll go outside and pay someone $20,000 more for the same job, it’s so backward it’s so broken. It’s so sad.
Diane HunterMarch 20,2023 at 12:37PM UTC
Local governments are doing the same thing. I was making less then new hires! Made me very angry as I was supposed to be experienced and train them! Needless to say I left. Employers are brutal now. They know what they can get away with and then they do because they can replace you.
Kimberly BabcockMarch 20,2023 at 1:13PM UTC
It depends. Do you like your job, do you like your team members? Only you can say if it is worth putting in more time. It is understandable that you did not think to ask because you have always received yearly raises. However, now you know, so next time in an interview always ask what the companies compensation policy is concerning raises. Also, use it to your advantage now. Be honest, say you are disappointed and would like to know the way going forward - what is the merit system to obtain a raise? Also, keep notes for yourself for future meetings with your boss. Every time your feel like you have performed at a high level make a note of it and come to the meeting with facts on how you have been a team player and assisted in the companies missions and goals. Lists specific projects or goals that were met on time or before. Be as detailed as possible on how you feel you contribute in a positive manner. They are the same as you, they have never given raises on a yearly basis so they do not think to mention it in an interview. It is common for them. This gives them a chance to see your point of view and value. Once given the chance, if they do not rise to the level you wish you can leave.
AnonymousMarch 20,2023 at 1:38PM UTC
I'm not sure what industry you're in, but everywhere I've worked (tech) the norm is what you described at your new job - annual raises and bonuses are never guaranteed, no matter what your rating is, and it's very common to not be able to get higher than a "meets expectations" rating in your first year in the position (after new hire, job transfer, or promotion to a new level).
AnonymousMarch 20,2023 at 11:16PM UTC
I've worked in tech for 15 years from start ups to tech giants and Fortune 50 and its very rare for a company not to give a raise even with meets expectations. I even worked for FAANGs and one thats notorious for not giving raises and I still managed a cost of living adjustment along with a performance raise. If you aren't getting a raise something else is going on. The company might not be performing well or having funding issues. Then again in this climate of financial uncertainty in the tech sector, raises in general might be frozen and jumping ship might not get the OP anything. The issue might be cascading across the sectors.
Joann S. LublinMarch 20,2023 at 2:21PM UTC
Assuming you take advice offered here about job hunting again, I also would recommend you negotiate with next employer to get a performance review after six months (rather than usual one year) tied to a bonus and/or raise if you achieve agreed upon six-month goals. Best of luck! For more advice about how to negotiate fair pay, suggest you read my book "Earning It."
Vanda LeeMarch 20,2023 at 2:57PM UTC
Start looking...why wait and see. Keep working and doing your job but there's something better suited out there for you.
AnonymousMarch 20,2023 at 3:32PM UTC
Every company does not give yearly raises. Find out what to expect from your company before you look for another job. Then make your decision based on what their policy is, not what you thought it should be.
AnonymousMarch 20,2023 at 5:59PM UTC
Why blame HR/Recruiting when you didn't properly vet the company up front. You are not entitled to a raise just because. Every company has a compensation program written or unwritten depending upon their size and dynamic and revenue stream, you just didn't ask. Take a moment to assess whether the job is stimulating, is meeting your needs for career advancement and the other culture pieces that you require personally for job satisfaction. Then take a moment to reflect upon what you really need to be happy. If the current role does all of that stick it out. Ask for feedback and solicit upward mobility which may give you want you want. If its only about money, you know what you need to do.
DustyRoseMarch 21,2023 at 1:35AM UTC
I don't think it is appropriate to ask potential employers if they give annual raises. I think it would be appropriate once the job has been offered. I am disappointed she worked so hard and received nothing. Lesson learned.
AnonymousMarch 21,2023 at 10:11PM UTC
and why not? no one works for free....and with the cost of living going up considerably every year you are not being realistic if you don't know this important information up front before you make a decision or before getting to the finish line for an offer. Don't cheat yourself out of knowledge, its power in almost any situation.
AnonymousMarch 20,2023 at 7:22PM UTC
Regardless if you decide to stay or go, I recommend that you inquire to see if the first year is different for bonus/raise requirements. Some companies may not pay out an increase or bonus to employees in their first year (or less if the reviews occur at the same time every year). I've worked for a couple of organizations like that, where merit or CoL increases, bonus eligibility, and additional vacation/other benefits were not available to employees with less than a year in at the time of the annual evaluation.
AnonymousMarch 23,2023 at 7:00PM UTC
hey, in this environment - job hopping is the name of the game. If they don't want to pay, then they will not keep the good employees that can move on. I would ask again for a raise based on performance and I would also bring salary comparisons to the discussion. Make your case, know what you want to say, practice and go for it. If they say no, then you must decide outside of that meeting what you want to do. Stay or look for another job.
A friend (with a college degree) of mine worked their way up in the company and had people coming in making more than they were. They left for a similar job at another company for $40,000 more a year and bonus. Don't be afraid to do what is best for you.
surfnwriteMarch 26,2023 at 4:13PM UTC
BECAUSE you are a first-year they can only give you an average ranking? That makes no sense.