Of yearly raises (And a new oportunity!)

Kyougu

So I just completed my first year at a real job, so the process of yearly raises is new to me, so this may be a dumb topic. Bear with me.


I just checked my wage today, and it seems my raise went through, one of 2.5%. Now I'm not going to lie, I'm a bit dissapointed. Partly because I really busted my ass this past year and I had both great mid and final end of year reviews, and my past manager always said what I great job I did (just got transfered to a new manager). It's also because when asking around, I was hearing all sorts of random figures of what % I should expect for a raise, most being in the 4-8%. So I was hoping for a bit more.

Should I be dissapointed? Naturally I'm happy I got anything at all, but I'm mainly curious. I work for the banking/housing industry, I may guess that funds may be low.

Update: Thanks for the reasurances guys, I'm happy about just receiving a raise as most of you pointed out. And it seems my hard work is paying off, since I'm being given a new oportinity, though one I'm not 100% sure about.

So 2 months ago I found out that my current dept was being phased out, our duties being moved from our Dallas location to Jacksonville. The Jacksonville managers came by, sat with us so we could show them our procedures and ended up being impressed enough by me that they ended up letting me go to Jacksonville to train the new team.

Fast forward to the present, where I'm under a new manager, doing new stuff. Once again I'm working hard, and the manager has noticed, giving me more responsibilities. Today though I hear from the Jacksonville manager, and she basically asks me how much it would take for me to move to Jacksonville. I'm floored by this question, and simply say 33k to 35k (I make 30k right now) and she says it could be doable. Advises me to think it over, and get back to her.

So now I come to you guys with new questions:

1) How much should I actually be asking for me to move from Dallas to Jacksonville? It would be a lateral move career wise, though being the more experienced member of the team I imagine I would have a bit more responsibilities.

2)Jacksonville...I have no idea about the city. What's it like? Cost of living? I'm 27, single, and my only debt is student loans, so I'm not exactly tied down anywhere.

Eeveelution

A lot of companies process raises differently. 2 to 3% seems to be most common place.

My wife works for dicks sporting goods, so she got a raise of 3% at her one year.

I work for Costco. I get raises based on my hours work, and they usually hit for around 25 cents per raise. That being said, 2.5% isn't that bad in comparison. It will keep going up as you work there longer. (usually)

Peen

Also, not to be a wet blanket, but In These Tough Economic Times you're fortunate to be getting a raise at all. I work for a major US city and our raises have been frozen for the past two years with no end in sight.

Dog

8% is almost a promotion-grade raise. 2-4% should be the norm, especially in the economic climate as stated above. Also, considering it was your first year, I wouldn't have expected more than that.

Deebaser

In this economy, 2.5% is pretty damn good. Last year everyone at my company got 1% across the board. That sucked too.

EggyToast

My company has a raise freeze so I got a big fat 0% raise this year. That sucks worse, believe me.

bowen

Usually your year end review has you discussing or signing to your new wage. Most states require you to sign something if your wage is changing, usually because some places try to reduce wages without telling employees (I think). Though I'm not sure about TX.

That's about on par for raises though, to stay above the cost of living/inflation increases.

You may want to talk to HR/management about review and raise practices and if there's any year end negotiations or if it's determined by contract or whatever.

Evil_Reaver

My company has a raise freeze also, so I got a 0% raise this year. Oh, and they decided that everyone has to pay in to the company's retirement fund, so I get money deducted from my paycheck for a fund I'm not going to use on top of getting a 0% raise.

2.5% is pretty freakin' good, dude.

Gilbert0

2.5% isn't fantastic but it's not bad. I'd consider it pretty average especially with the low economy.

In reference, some union deals include things like 0,1,1 or 0,0,2 or even 0,0,0 (that's percentages each year over three years).

In BC, that's why teachers, nurses, etc strike. Inflation is growing while wages are basically frozen over THREE years or longer.

Aphostile

Toss my name into the zero percent raise for this year hat.

And last year.

And probably next year too...

But all day we just throw money around la-de-da! I WANT MY MEASLY RAISE.

John Matrix

My annual review is coming up this week, last year I got a raise and a bonus but didn't realize that the raise was 5% until just now. I was hoping for more of a raise this year but after looking at the percentages I guess I'd be fortunate for the same amounts/percentage this year.

John Matrix

bowen wrote: »

Usually your year end review has you discussing or signing to your new wage. Most states require you to sign something if your wage is changing, usually because some places try to reduce wages without telling employees (I think). Though I'm not sure about TX.

That's about on par for raises though, to stay above the cost of living/inflation increases.

You may want to talk to HR/management about review and raise practices and if there's any year end negotiations or if it's determined by contract or whatever.

I'm in Texas (Dallas) and last year my salary negotiation consisted of this: "We're giving you a raise of X and here's your bonus check minus taxes."

"Cool."

bowen

They probably followed that up with a paper though, I'd hope?

John Matrix

You mean my new salary in writing? Yes, the HR guy and Partner had it all in front of them.

Not sure how I'll do this year, been preoccupied applying to law school but I think I did a good job.

Krikee

2.5 percent is pretty nice these days and it sure beats 0 percent or a cut. It has been a few years since I saw a raise even though I get rave reviews.

LaOs

Even discounting "these days", a 2.5% annual raise is not as poor as it may seem. It should keep you moving up with inflation at least, which is what you want to shoot for at least.

Also, it may be that you received an annual 2.5% raise but your merit increase or yearly performance raise hasn't been processed yet. Ask someone in HR about raise policies, check to see what you signed/papers you were given regarding your wage, etc.

For example, I'm in a union at a University, but regardless of yearly increase negotiated by the bargaining unit, University staff receive an annual increase of 2% each year. Right now the unit is starting negotiations on our new contract (beginning January 1st 2010), so I haven't received the other part of my raise yet, but I did get the regular 2%.

Psychotic One

Yeah I work in tech support and this year we're not getting raises. A 2.5% raise is not bad and I would kill for even that this year. Mine have in the past generally been between 2-4% depending on my review.

Bionic Monkey

I've never even heard of an 8% raise. 4% is on the upper end. 2.5% is perfectly fine, and pretty typical for these things.

Spacemilk

I'm a chemical engineer working for a major oil company. We aren't getting raises this year, across the board. Congrats on the raise, you are very lucky.

Crashtard

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

DjCalvin

Crashtard wrote: »

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

In 2006 I got a 10% cost of living raise.. but before that I hadn't received one (any raise) at all since 2001.. and since then it was 1-2% a year until 2007 when I got my last raise.. Not expecting anything anytime soon...
(all same company btw)

Crashtard

DjCalvin wrote: »

Crashtard wrote: »

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

In 2006 I got a 10% cost of living raise.. but before that I hadn't received one (any raise) at all since 2001.. and since then it was 1-2% a year until 2007 when I got my last raise.. Not expecting anything anytime soon...
(all same company btw)

I guess it makes sense if you don't get another raise for 5 years, but you certainly can't expect that kind of a raise EVERY year.

DjCalvin

Crashtard wrote: »

DjCalvin wrote: »

Crashtard wrote: »

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

In 2006 I got a 10% cost of living raise.. but before that I hadn't received one (any raise) at all since 2001.. and since then it was 1-2% a year until 2007 when I got my last raise.. Not expecting anything anytime soon...
(all same company btw)

I guess it makes sense if you don't get another raise for 5 years, but you certainly can't expect that kind of a raise EVERY year.

and that was a Cost Of living raise.. those are not common... eitherway 2.5% is friggin awesome in this economy.

Crashtard

DjCalvin wrote: »

Crashtard wrote: »

DjCalvin wrote: »

Crashtard wrote: »

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

In 2006 I got a 10% cost of living raise.. but before that I hadn't received one (any raise) at all since 2001.. and since then it was 1-2% a year until 2007 when I got my last raise.. Not expecting anything anytime soon...
(all same company btw)

I guess it makes sense if you don't get another raise for 5 years, but you certainly can't expect that kind of a raise EVERY year.

and that was a Cost Of living raise.. those are not common... eitherway 2.5% is friggin awesome in this economy.

Indeed. My father and uncle both took 2.5% pay CUTS this year to keep their jobs. Most places around where I live have freezes on salary increases. OP, if you continue getting a 2-3% raise for a few years you'll be surprised how much you'll be making.

Sir Carcass

My company ranges from 0% to 3.5%, based on your review score.

The largest raise I ever got was 20%, but that was a different company and was some kind of department increase.

Wiley

2.5% is better than nothing. At least you weren't informed there was a good chance you wouldn't be rehired when your contract ran out because of state budget shortfalls.

bowen

I've come to realize that working in the medical field is great.

Thundyrkatz

As everyone has said, 0 to 3% is typical for an annual raise. This is basically to keep pace with inflation. As a rule of thumb, you will never make much more money based on your annual raise.

Promotions are where you make your big increases. If you are unsatisfied with your 2.5% raise, which as stated is not terrible. Then i would talk to your manager about what options there are for career advancement.

Also, be very careful discussing pay and raises with co-workers. Nothing good ever comes out of that conversation.

bowen

And may very well be against your employer's rules in the handbook and your contract.

DiannaoChong

We get 3% mandatory for cost of living increase, however each year for the past 3, we have been taking a hit with the 3% hike because our health insurance goes up so much, it eats the difference. Generally its performance based but there squeezing the "economy sucks" excuse pretty far for the past 2 years and holding us to the minimum 3%. Its better then unemployment though so I cant really complain.

DeathPrawn

Crashtard wrote: »

DjCalvin wrote: »

Crashtard wrote: »

8% raise?! I want to know who does that so I can get on with them. I just got my yearly raise, and it was 3%. I asked some other people I knew, and that seems to be about standard.

In 2006 I got a 10% cost of living raise.. but before that I hadn't received one (any raise) at all since 2001.. and since then it was 1-2% a year until 2007 when I got my last raise.. Not expecting anything anytime soon...
(all same company btw)

I guess it makes sense if you don't get another raise for 5 years, but you certainly can't expect that kind of a raise EVERY year.

I mean, a 10% raise every five years is less of a raise than a 2% raise every year.

Dunadan019

government employees get a cost of living increase of 2-4% every january. that's on top of any other performance or time based raises which usually are 5-30%

Kyougu

Thanks for all the opinion guys. Really helped put things in perspective. Though now I have a new job related question. I updated the OP.

John Matrix

Hmm, I've never moved cross-country when switching jobs before, but I would think that I would ask for more than 5k increase. If they want you out there and they know that there's a 1000+ mile move involved, I might be inclined to ask for more money.

Again, I've never done this before so wait and see if some who's more familiar with this to post before you make your demands.

Dunadan019

If you move from Dallas, TX to Jacksonville, FL
Groceries will cost: 1%more
Housing will cost: 22%more
Utilities will cost: 17%less
Transportation will cost: 4%more
Healthcare will cost: 5%less

Comparable salary in
Jacksonville, FL
$31,401

http://cgi.money.cnn.com/tools/costofliving/costofliving.html

how to move accross country:

http://www.wikihow.com/Move-Cross-Country

how much money will you need:

depending on how much you take with you, $1-5K

John Matrix

I really don't know about that housing cost. It recons that if I move from Dallas to Tyler the housing prices will increase by 20%. I can't believe that. 35% if I move to Bloomington, Indiana.

If you're happy where you are ask them for $$. Don't forget you're moving from Texas to Florida.

bowen

Ask for 100% relocation reimbursement and get it in writing. You're moving for the company they should be willing to help you with that.

You're probably looking fine, as the CoL increase between the two means to maintain the same standard you'd only need about $2,000 more.

Thundyrkatz

Are you currently living in an apartment with a lease? IF so, there may be a cost associated with breaking your lease if the timing doesn't line up.

Also, what sort of assistance will they provide you to locate suitable housing in Jacksonville? Will they put you up in corporate housing for some amount of time for free or a reduced cost to allow you a chance to scope out the area and find a place to live? If not, will they fly you out there and put you up in a hotel for a week to look around and line up an apartment? If not, what is your plan on finding suitable housing in the Jacksonville area that is not in a bad neighborhood and is within a tolerable commute to work?

Also, assuming all goes well and you find a nice place and are ready to move, how much time do you have to move? Just the weekend see you on Monday? preferable a few days. Do you have anything that would require a moving truck or can you fit it in your car... are you driving there? Roadtrip?!

Jimmy King

I've moved across the country once... well, half of it. I moved from Iowa to Virginia. I sure as shit wouldn't go to that sort of hassle for that sort of salary. It's expensive, it's a lot of work, and it's a risk for you. I've seen it happen even when the economy was fairly decent. Someone makes an internal move in the company or a move to a new company (I've seen this happen both ways several times), then there's a need to lay people off and they're the new person to the deparment/job, with the least experience, and shortest track record of doing good at that job so they're let go.

I do tend to play things very safe, but right now, I personally would not change jobs at all for anything other than an absolutely perfect opportunity. I prefer to stay where I've already proven myself, have a history of success, and am fairly stable in the current economy. I get calls every few weeks from headhunters wanting me to move across the country. I tell them that for me to move, they need to be paying even more than I think I'm worth, and I think pretty highly of myself. Now, a move within the same company is less risky, but as I mentioned above, I've still seen it screw people. I wouldn't combine that risk with the hassle and expense of a long distance move without a very serious benefit for me - a huge pay increase to something that I don't feel I can easily get locally or some sort of experience that guarantees me constant work and big money in the future.