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Anonymous

February 22,2024 at 2:12PM UTC

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Hello! I've been with my company for 3 years and I LOVE my job! I've taken on many new projects and volunteered for extra duties. My review last month was very positive but the problem is the salary increase level. Last year, with also a very positive review, the increase was 2%. This year it was 2.5%. With the rate of inflation let alone my performance, this is disappointing. Our company is rather transparent about financials so I do not think this is a budgetary concern. My suggestions that my position be reviewed for a "bump" since my responsibilities are at a higher level than when I began and assumed from those at the next level up have resulted in brief conversations but not taken seriously. What coiuld be the issue and how do I move up? What is a good next step in addressing these concerns?

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AnonymousFebruary 22,2024 at 3:17PM UTC
You are on the right track. Since your salary bump was so low with that performance review, you are likely at the top of your current salary band. Asking for a bump in the title will move you into a higher-paying position with more opportunities for a better increase. Be sure that your work is appropriate for the higher level before you push for it. The additional responsibilities in the upgraded title may be beyond the "extra duties" you have volunteered for or may not be what you expect. Many JDs with a Sr. or Lead added to the title include mentoring, supervising, or performance analytics.
AnonymousFebruary 22,2024 at 3:25PM UTC
As a manager, I've aways advocated for employees in order to level up or receive raises but caution to tread lightly. If companies are transparent about financials and you are receiving increases, that's a sign that they value your work.
Rather than starting the meeting requesting more money discuss long-term goals. Staff often address cost of living and sadly that's not the company's concern. Helping you pay your bills is not their bottom line and that's up to you to manage.
Instead, come to the meeting equipped with how your job has changed, what you've taken on that's outside your original JD, how you helped the company succeed and that you want to discuss a long-term future and what that entails?
What are the benchmarks you need to hit to be eligible for an increase? If it's seen that you are only after a higher salary, it sets up a difficult conversation where you may hear that you need to look elsewhere. You may not be aware of the budget for the team, the role or high-level requirements that push your request outside of the funds available for the department.
Now more than ever, companies are concerned about making profits. While their financials increase that doesn't always trickle down to the employees.
I've been in roles where I've talked myself out a job whether discussing advancement or salary increases. I wish you the best but before commencing these talks, know what you want and if it doesn't turn out the way you hoped what is your contingent plan. Good luck!
AnonymousFebruary 22,2024 at 7:40PM UTC
The issue is that company is saving budget.
So either they're having financial difficulties or they do not consider your position worthy of a raise and/or promotion.
AnonymousFebruary 23,2024 at 6:14PM UTC
If you work at a major corporation the levels are set and making a special exception to level you up will not happen because of internal compression and counterbalancing you against others. My suggestion is shop your new increased role at other competitive companies and see if you can get more that way or ask for spot bonuses. They are taxed more heavily than your basic salary but if money is the goal you will still get more if it is approved. It does sound like you are barely getting to meet the cost of living increases we all are dealing with and that alas is the reality at the moment.
Adele FriedelFebruary 25,2024 at 2:03PM UTC
This is not unusual for larger companies. When annual budgets are set, a pool of money is set aside for annual merit raises. They rarely match inflation rates. I haven’t worked for a company in 20 years or more that gives much more than 2.5-3 percent. It’s unfortunate but a reality.
I love my current job and my boss is the best, most talented boss I have ever had. I have to weigh that against my compensation. As long as I’m able to pay the bills, set aside money in savings and retirement, I’m completely happy with whatever I get.
If that is not the case for you, do some research about what the industry norms are for compensation for your position. If you aren’t somewhere in the middle to higher end of that scale, it’s reasonable to ask for a raise or talk about how the company might be able to get you to that range.
I know it can be uncomfortable to ask for additional compensation but if you do your research and present your case professionally, you may just get what you want or at least have a plan in place for how to get there.
Good luck!
GirlBossanova934974February 25,2024 at 2:47PM UTC
So let me see if I get this right? You know the company financials, right? You are seeing how much more profits they are making, right? I just going off your words. So the next question is WHERE is the money going? Are they investing in new software or buying more XYZ? Investing in some new building or machinery? IF the answer is NO, NO, and NO, and it appears the extra profits are going straight into the company checking account where the owners are taking much more home for them and handing you 2-3% raises, you have answered your question. TIME TO LOOK ELSEWHERE! Hope this helps....
AnonymousFebruary 25,2024 at 3:50PM UTC
I understand the pickle you’re in. I think you may face the difficult choice of whether salary or contentment with your role and company matters most. If you are willing to wait and hope, you might schedule one more meeting to present your qualifications for a raise — with metrics and impacts — and set a firm date when management will discuss an increase; however, at this point, you’ll probably have to look outside this organization to meet your salary requirements.
AnonymousFebruary 26,2024 at 1:21PM UTC
that raise is on par with anything I've ever received in the past 25+ years.
Cost of living raises are long gone. Transparency doesn't mean full disclosure of every expenditure, nor are you likely privy the details of the budget forecast.
If your responsibilities have increased to warrant a "promotion", start the conversation! You won't know until you ask.
If you feel that the grass is greener elsewhere, dip your toe in the pond. But you should also know that there are plenty of organizations that haven't given raises in the past few years.
Nancey ChambersFebruary 28,2024 at 2:11PM UTC
Get job offers from other companies that pay more. If you want to stay with your current company, then tell them you've received job offers and see if they will counter.