Raise

Question

Hi, I have been with my company for almost 7 years and have never received higher than a 3% raise annually. Is this normal or am I selling myself short? Discussing salary, etc. makes me very uncomfortable so I never negotiate.

Rachel Noll James · Answer

This is a tricky one because in my experience its very case by case. The standard currently listed online is 4.6% raise for exceptional work and 3% seems to be the standard for standard raise percentage. If you have received a promotion with a new title and more responsibilities, that is a very clear trigger to ask for a bigger raise. If you feel you have taken on more leadership responsibilities or continue to go above and beyond in your job, then requesting a higher raise at your next review might make sense. Perhaps you could also approach it by offering to take on more of a leadership role in your department (if applicable) to justify a bigger salary increase. If you have a manager who is a safe space, you could also bring this to them directly and tell them your concerns about how long you have worked there and your needs for a higher rate and see what advice they can give. As a manager of a team myself, I am always happy to hear from my team if they have a need or a request to make them happier at work -- especially if they have been with the company a long time!

Quennie · Answer

I came across a line while browsing through a piece of article online and it goes...' if you don't ask , the answer will always be NO!'. I live by this statement and have been a mantra  each time I feel intimidated at situations. It worked for me few years ago in my old organisation, as a result I got not an increase but a recalibration of my role and my salary. It did not only bring about salary increase but it also realigned my Salary to what was accepted in the industry. Do ask away!

Orlagh Costello · Answer

I have to say, I've never experienced much more than a 3-5% increase in industry unless I left for a new organisation. Even internal promotions don't give a decent rise....

Alicia Mason · Answer

Hi Anon - this is normal (usually between 0-5%) if your role is the same, expect to be able to negotiate more if you recieve a promotion. 
This is also why many younger workers jump roles every 2 years, this helps to build up their base salary as ususally they leave for more $ and it is higher than a 3% jump.

Anonymous · Answer

Do you have a good manager who would be open to this discussion? If you are performing well, you are likely selling yourself short and shame on your company for not doing their part to reward you. Know what your industry pays, your pay grade range and/or the range on your team. Ask and see what the response is. If it's supportive (and clearly reactive), I would continue with caution in the future. If it's lukewarm or demeaning - change, accept or leave.

My (negative) cautionary tale: I am at the end of 20 yrs with my company: I was hired in low and the infrequent raises done by percentage meant that I couldn't catch up. It's not for my lack of asking, it's for thinking that when I asked I would be treated fairly. I am a high performer and am not a shy person so attempted to negotiate my entrance salary and started requesting significant raises from 2 years into my career to date.  The last seven years have been rough in my industry so I eked out one 8% raise and received higher than typical annual merit increases 2-5%. Even so, I found out last year my (male) peers were making 20% more than me (do the math over 20 yrs). I have a friend who found herself in this position years ago and when she brought it up, her company immediately corrected it (boo on them to not have done so beforehand); when I brought it up at my company I experienced retaliation, including a pay decrease. After my most recent 'battle', I am now paid 6% less than my LOWEST paid male peer. Better, but still disgusting. So in my male-biased workplace one can ask, but is left to envy. I wish I hadn't trusted that my company had integrity.

Good luck.

N T · Answer

Hi Anon, discussing salary used to make me feel uncomfortable too. I agree with all the responses to your question and they are all good things to think about. Leadership tends to think in terms of the ROI you bring to the team. If you are a key person and believe your work impacts both the company's success and your team's success, because you take on extra work or have been able to streamline work, I would write that down for your next performance review. Treat it like a resume and include %s on any impact you have made. If you want to get a higher salary or raise show them how you are either saving them money or making your company money.  I recommend the book Feminist Fight Club. That book also gave me the courage and tools to go after the salary I knew I deserved.  Good luck to you! The fact that you care enough to post this here already tells me you probably deserve a higher raise.

Sian Weekley, SHRM-SCP · Answer

Actually, if you know your worth, and your past appraisals have all been exceeds or better, you may be selling yourself short.  Consider if you are the 'go to' for your boss, your peers, others within the company; do you go above and beyond; do you continuously achieve, and then some?  If yes, then in my opinion, you should ask for more.  I agree with the above, 3% is often times the average, but there is no harm in asking, especially if you state your case and your achievements. 
In reality, the worst your boss can say is no, or not right now.

yvette finley PHR · Answer

The conversation is worth having.! I went through the 'nominal percentage' raise cycle for years until it was broken with a genuine performance based conversation.  You will need to initiate (as Jennie said). I would also recommend finding out what your position pay range is.

Anonymous · Answer

Unfortunately, depending on the industry, that could be the 'norm'.  That is the max my organization has had for several years and in actuality we were told no raise this FY and none has been budgeted for next FY.

Jennie · Answer

There are two pieces to this question.  Is a 3% raise normal and am I settling for less than I'm worth.  First, there's a question of your job and what your compensation package is.  In large companies i've worked in a 3% raise was often the annual target for raises.  Those who were rated above average in their reviews received a higher % than 3% the average people received 3% and those who performed less well got less than 3%.  So this assumes that you have a fair review process since your salary increase depends on that.   In some roles people get low raises, but have the opportunity to make more with a bonus on top of the raise.  If your role doesn't have a bonus attached to it, this is something to look for in future jobs.  I'd ask myself, am I getting good reviews or average reviews? Are you having a conversation about your performance with your manager and are you discussing what you could do to get a better review?  If this sort of process doesn't exist, then you'll need to instigate the conversation.  You deserve to know where you stand, what your boss thinks of your performance  and what it would take to get a higher raise, or perhaps more responsibilities in a job that pays more.  Keep track of your accomplishments, including results, on how you've contributed to the business.  When you speak with your manager have these results handy to share.  Having a conversation about your future is never a bad thing.  This is not a negotiation, this is knowing where you stand and making a case for why you deserve more.  If you don't speak up for yourself, who will?  Just be prepared to go in with facts and to make your case.

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