I'm a raise virgin. Halp!

ZyreZyre Registered User regular
edited February 2009 in Help / Advice Forum
I've been working with my current company for almost a year, the end of March will be my 1 year mark. When I was first hired, I was told I would be paid X amount for the first 3 months, then I would get a $0.75 raise, and after six months I would receive another, and then at my 1 year mark I would get a third raise and they would only come on a yearly basis from that point onwards.

The manager that hired me no longer works here, she was fired about six weeks after I started for stealing several hundred dollars from the company (Atleast, that's what I heard, but that's not here nor there). A replacement was never hired to fill her management position, instead they "promoted" one of my co-workers to "assistant manager" to facilitate her role, while the assistant general manager took over the rest of the duties, basically getting everything covered without giving anyone a pay raise and saving the company a manager's salary.

I got my 3 month raise. When my sixth month checkmark was reached, I inquired about a raise with the general manager and he explained to me that there is no six month raise and that "everyone will get a raises at the end of the year." So if I understand this right, the best time to get hired would be in September then right? 3 month raise in December, end of year raise in Janurary? He told me yeah, that would be the case. (This doesn't make sense to me) so as the end of the year was just a couple more months away I figured I wouldn't persue the issue.

End of the year came, the 2009 budget looked grim for the company. Several people were laid off. More followed. Hours began to get cut. When I inquired about our end of year raises, I was told that they were pretty much put on indefinate hold while the company restructures it's finances for 2009 due to the economy. (I'm beginning to get aggrivated now, it feels like management is dicking with me) Janurary was a pretty grim month, but the beginning of Feburary everything has begun to stablize again, our hours are back up to regular.

I've been told by two of my managers in meetings that I am the best worker for my job they've had in many years, as is one of my co-workers. (I am way over-qualified for my job)

So here I sit at a crossroad. I've never negotiated for a raise before, and with my 1 year review coming up in March, I think it's time I popped my cherry as it were. I've done some preliminary research by looking at competitors ads in the newspapers, and they are offering quite a bit more money than I'm currently earning. I've done a few google searches so far as a primer and found some research tips, but I was hoping my fellow readers of H/A might have some personal stories and advice to share with me that I could use in addition to my own research. Anything would be appreciated. I want to be as well prepared for this as possible.

Zyre on

Posts

  • The Crowing OneThe Crowing One Registered User regular
    edited February 2009
    Zyre wrote: »
    So here I sit at a crossroad. I've never negotiated for a raise before, and with my 1 year review coming up in March, I think it's time I popped my cherry as it were. I've done some preliminary research by looking at competitors ads in the newspapers, and they are offering quite a bit more money than I'm currently earning.

    In this economy, a lot of companies have instituted hiring and raise freezes. Don't be upset if they're denying everyone a raise until things begin to look up. That said, it may benefit you to shop yourself around a little. Send out resumes and try to get an interview or two.

    Don't assume you're valued at more than what you're being paid, especially in this economy. Unless you have an offer in hand you're in no position to really argue a raise above standard guidelines. If you do have an offer in hand, your value just went up and it can be used as a bargaining chip.

    You're getting jerked around by these guys, as you were promised a raise that they're telling you doesn't exist. At your one year mark you can sit down and do your best to get the raise that you deserve, others can (and will) give better advise than I can for the actual conversation.

    The Crowing One on
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  • Mai-KeroMai-Kero Registered User regular
    edited February 2009
    What exactly is your job?

    Mai-Kero on
  • GanluanGanluan Registered User regular
    edited February 2009
    If you want to negotiate for a raise effectively, you need to be prepared for them to call your bluff. If they know you'll keep working there without a raise, they have no reason to give you one - especially with practically every company tightening their budget right now.

    You didn't mention what kind of job you're in, but the ".75 first raise" seems to indicate that this is an hourly position. Unless you are sure you can't be easily replaced, I would not try to play hardball. If you have an offer from a similar job nearby you may be able to negotiate something, simply because they don't want to take the time to train someone else (again, this depends on what your job is).

    If you do want to negotiate for it - here's what I did last time I asked for a raise. I asked my boss if he had a few minutes to talk (you don't want to just spring it on them). I explained that I was worth more to the company than they were paying me, and that I knew other jobs in my field were available that paid more. I told him that I like working at this company but have to think of my family along with my career, and I need to work somewhere that understands my value. The key thing is I mentioned specific things I had done there that demonstrated this (took initiative on certain projects, improved development cycle speed, etc) so it didn't just sound like I was patting myself on the back.

    I got a 10% raise the next week and others since then. Now, this is a professional setting and I am paid as salary - if you are working hourly (are you full time?) and this is a lower-skilled job you may have a hard time convincing them of the above.

    Ganluan on
  • supabeastsupabeast Registered User regular
    edited February 2009
    I’ll be blunt: if you’re negotiating for a raise of less than $1.00 per hour, you’re probably expendable and it’s not a good idea to rock the boat. Because your boss can easily lay you off and hire back your former co-workers for $.75 an hour less than you make right now.

    supabeast on
  • SerpentSerpent Sometimes Vancouver, BC, sometimes Brisbane, QLDRegistered User regular
    edited February 2009
    I'll disagree with supabeast.

    A 75 cent raise after 3 months is very good. If they awarded you that raise every 3 months that's the same as an annual $3 dollar raise.

    A raise more than 3% is rare except at the start of your career, and EXCEPTIONALLY rare before 1 year of working. 3% of $30 an hour (annual salary $62,400) is $0.90 an hour (annual raise of $1,872).

    The guys over at www.manager-tools.com have 4 podcasts on preparing for your own annual review, and 2 podcasts on compensation and raises. I highly recommend them. their recommendations on preparations are a little overboard for people who are not managers, but I prefer to feel prepared for my reviews rather than being blindsided.

    Serpent on
  • AlethiometerAlethiometer Registered User regular
    edited February 2009
    Now I don't work at the same company as you, most likely, but let me give you some tips coming from the management side of the fence.

    I'm an IT manager in a big manufacturing company- 4 facilities in north america, more worldwide. From the way you are describing your position/raises, it sounds like your situation is much the same as most of our employees. The last five months have been hard, really hard. Orders are way down and sales projections are being revised all over the place.

    We've had to cut hours for all non-salaried employees. We've had to cut merit bonuses for them as well. You would not believe the amount of infighting that went on trying to keep those bonuses for our people, because half of them are living paycheck to paycheck as it is and 32 hours a week isn't cutting it. We'd probably be seeing 50% turnover if there were any place to go. In the end, to secure the bonuses for the floor that we had been promising all year, office staff effectively had to give up our bonuses and delay any raise discussions until June at the earliest.

    Here's the deal- unless you have a terrible manager, you're not being jacked around. It really is that bad right now. If there is a contractual obligation to give you a raise, then make some noise about it. Honestly the best thing you can do is go somewhere that's actually going to pay you more. Don't leave until you've guaranteed a new position, though.

    Alethiometer on
  • GanluanGanluan Registered User regular
    edited February 2009
    One other thing - was the raise 6 months and a year part of your hiring agreement, or something the previous manager said? If it's the latter, the company can make a case for that manager being wrong (even if they weren't), especially if they were let go for doing something shady.

    Ganluan on
  • supabeastsupabeast Registered User regular
    edited February 2009
    Serpent wrote: »
    A 75 cent raise after 3 months is very good…

    Captain math, you’ve completely missed the point. How good the raise is is irrelevant. What matters is that Zyre’s post implies to me that he’s working in retail, food service, or some other unskilled and probably part-time job. That’s not the kind of job where it’s a good idea to start demanding a raise in a depression—especially when the company has been laying people off.

    supabeast on
  • SerpentSerpent Sometimes Vancouver, BC, sometimes Brisbane, QLDRegistered User regular
    edited February 2009
    supabeast wrote: »
    Serpent wrote: »
    A 75 cent raise after 3 months is very good…

    Captain math, you’ve completely missed the point. How good the raise is is irrelevant. What matters is that Zyre’s post implies to me that he’s working in retail, food service, or some other unskilled and probably part-time job. That’s not the kind of job where it’s a good idea to start demanding a raise in a depression—especially when the company has been laying people off.

    I apologize for missing the point. I thought you were saying that a less than $1.00/hr raise meant he is in an expendable position. I was saying that his raise was good in any position, and does not mean he is expendable.

    Let me know if I am still missing the point.

    Serpent on
  • corcorigancorcorigan Registered User regular
    edited February 2009
    They might just have overlooked it. Worth mentioning it?

    I seem to remember failing to get a rather pointless 10p an hour raise for about a year during my retail days due to clerical mistake.

    corcorigan on
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  • MichaelLCMichaelLC In what furnace was thy brain? ChicagoRegistered User regular
    edited February 2009
    Coming from a manager side here.

    You've been told clearly that raises are on hold, and from what you say, you can see the company financials aren't great. While it may be on an upswing this month, you have to think about the long-term of the store/business. Let's say they gave everyone raises in January, Makes everyone happy. Now what if the next two Quarters suck, and they have to let one or more people go. Sure, you got your extra $, but now everyone has to work harder to make up for the shortage.

    Sorry for the length, but we just went through a similar thing. Huge layoffs recently, and yearly bonuses/raises aren't looking good. While I'm pissed because I was hoping for something, to me that shows that the top brass are really serious about making cuts to survive,

    So I wouldn't say/ask again, unless you're willing to walk.

    MichaelLC on
  • Dunadan019Dunadan019 Registered User regular
    edited February 2009
    just for future notice, ask for any raise promises in writing. you aren't being a dick if you do so and you actually have proof of what was promised.

    btw, a 75 cent/hour increase is peasly. thats little more than a retention bonus for not quitting after 3 months.

    Dunadan019 on
  • ZeonZeon Registered User regular
    edited February 2009
    MichaelLC wrote: »
    Coming from a manager side here.

    You've been told clearly that raises are on hold, and from what you say, you can see the company financials aren't great. While it may be on an upswing this month, you have to think about the long-term of the store/business. Let's say they gave everyone raises in January, Makes everyone happy. Now what if the next two Quarters suck, and they have to let one or more people go. Sure, you got your extra $, but now everyone has to work harder to make up for the shortage.

    Sorry for the length, but we just went through a similar thing. Huge layoffs recently, and yearly bonuses/raises aren't looking good. While I'm pissed because I was hoping for something, to me that shows that the top brass are really serious about making cuts to survive,

    So I wouldn't say/ask again, unless you're willing to walk.

    Im with this guy, and almost everyone else in this thread. This has been an absolute shit year. I mean, seriously, look at the fact they didnt even hire a manager to replace the one that got fired. Look at the fact people got laid off. Look at the fact that generally, across the board almost no one got merit increases or bonuses this year, except for a lucky few.

    At this point id be thankful i didnt get laid off if i were you. Also if youre so awesome, get a better paying job. If youre not really that awesome, wait it out like everyone else is doing. Or if you just really like your job, you better have a really fucking good bargaining chip, like someone else mentioned offers from other companies at least. Because yeah, i can almost guarantee you arent as great as some of the people that were fired, just cheaper.

    Zeon on
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  • SerpentSerpent Sometimes Vancouver, BC, sometimes Brisbane, QLDRegistered User regular
    edited February 2009
    Dunadan019 wrote: »
    just for future notice, ask for any raise promises in writing. you aren't being a dick if you do so and you actually have proof of what was promised.

    btw, a 75 cent/hour increase is peasly. thats little more than a retention bonus for not quitting after 3 months.

    Not peasly at all. It's about 3% of $52,000 a year, and is above inflation. That is a pretty standard yearly raise. For a 3 month raise it's very good.

    If you think 3% of $52,000 every 3 months is small.... do the math.

    start = $52,000
    3 months = $53,569 per year
    6 months = $55,167 per year
    9 months = $56,822 per year
    12 months = $58,526 per year

    That is a 12.6% raise (except better, because you received it earlier).

    That will increase your wage to $100,000+ very very quickly.

    Serpent on
  • ZyreZyre Registered User regular
    edited February 2009
    Thanks for the replies. Yes, it is a part time job while I attend school and yes it is customer service. Not retail or food service, but I do assist customers and do a lot of accounting / data entry as well. (Nothing at the job is challenging, infact all the "work" I do can be done in less than an hour because I know what I'm doing, the rest of my shift is downtime / customer service - hence why I stated I'm over qualified for the job. ...and the fact that I've seen some of the writing skills some of my co-workers have and I seriously can't understand how they graduated high school so the standards here aren't exactly high.)

    The last time I looked at the newspapers and online for competitors positions doing the same thing I was doing was several months ago, it does not appear anyone is hiring right now. I did some salary/wage research and found that I'm just below national average according to some websites so I think there is room to grow. It is in my employee handbook that there is an end of year review, but it does not entitle me to a raise, but I would like to negotiate for one, even if it is just another $1.25 or so per hour which I think is reasonable.

    I completely understand how crappy the economy is and really appreciate both sides of this discussion. Though I would like to see more success stories.

    Zyre on
  • MichaelLCMichaelLC In what furnace was thy brain? ChicagoRegistered User regular
    edited February 2009
    Since my last post was kind of a bummer (see my laptop thread), I'll give you a success story from the same company.

    I had moved back home after not getting a job at my Uni, so I was pretty desperate to find something so I could move out. After interviewing with this company, they offered me a job for about US$35k; I knew it was low, but it was a good start so I took it. I worked hard and didn't complain, but less than a year in, my boss asked what I thought of my salary. I told him I was happy, but more money would certainly be good considering we were going to be doing a major launch soon. So he bumped me up by $13k. That was four years and 3 positions ago.

    MichaelLC on
  • LaOsLaOs SaskatoonRegistered User regular
    edited February 2009
    Zyre wrote: »
    Thanks for the replies. Yes, it is a part time job while I attend school and yes it is customer service. Not retail or food service, but I do assist customers and do a lot of accounting / data entry as well. (Nothing at the job is challenging, infact all the "work" I do can be done in less than an hour because I know what I'm doing, the rest of my shift is downtime / customer service - hence why I stated I'm over qualified for the job. ...and the fact that I've seen some of the writing skills some of my co-workers have and I seriously can't understand how they graduated high school so the standards here aren't exactly high.)

    The last time I looked at the newspapers and online for competitors positions doing the same thing I was doing was several months ago, it does not appear anyone is hiring right now. I did some salary/wage research and found that I'm just below national average according to some websites so I think there is room to grow. It is in my employee handbook that there is an end of year review, but it does not entitle me to a raise, but I would like to negotiate for one, even if it is just another $1.25 or so per hour which I think is reasonable.

    I completely understand how crappy the economy is and really appreciate both sides of this discussion. Though I would like to see more success stories.

    When you're looking at raises, especially negotiating for one, you have to keep in mind what percentage raise a dollar value is. Like was mentioned before, if you're making 52K a year, 75cents is a 3% raise (on a 40hr week). If you're making less or working less, 75cents becomes a bigger percentage. Look at what you make per hour now and compare the new dollar value raise you want. What percentage of your wage would that be? Keep that in mind when you're shooting for a reasonable value.

    [Edit]
    Like, if you're making $10 per hour, $1.25 is 12.5% and that is not really a reasonable number to shoot for, especially in this economic condition.

    LaOs on
  • Dunadan019Dunadan019 Registered User regular
    edited February 2009
    Serpent wrote: »
    Dunadan019 wrote: »
    just for future notice, ask for any raise promises in writing. you aren't being a dick if you do so and you actually have proof of what was promised.

    btw, a 75 cent/hour increase is peasly. thats little more than a retention bonus for not quitting after 3 months.

    Not peasly at all. It's about 3% of $52,000 a year, and is above inflation. That is a pretty standard yearly raise. For a 3 month raise it's very good.

    If you think 3% of $52,000 every 3 months is small.... do the math.

    start = $52,000
    3 months = $53,569 per year
    6 months = $55,167 per year
    9 months = $56,822 per year
    12 months = $58,526 per year

    That is a 12.6% raise (except better, because you received it earlier).

    That will increase your wage to $100,000+ very very quickly.

    if you keep getting 3% raises every 3 month.... but you won't

    basically what they did is say "all the people in this position get x dollars an hour starting, we are going to pay you 80% of x as a start and give you 'raises' until you get to 100%" then you get the end of the year inflation buffer like everyone else.

    Dunadan019 on
  • ZeonZeon Registered User regular
    edited February 2009
    Zyre wrote: »
    Thanks for the replies. Yes, it is a part time job while I attend school and yes it is customer service. Not retail or food service, but I do assist customers and do a lot of accounting / data entry as well. (Nothing at the job is challenging, infact all the "work" I do can be done in less than an hour because I know what I'm doing, the rest of my shift is downtime / customer service - hence why I stated I'm over qualified for the job. ...and the fact that I've seen some of the writing skills some of my co-workers have and I seriously can't understand how they graduated high school so the standards here aren't exactly high.)

    The last time I looked at the newspapers and online for competitors positions doing the same thing I was doing was several months ago, it does not appear anyone is hiring right now. I did some salary/wage research and found that I'm just below national average according to some websites so I think there is room to grow. It is in my employee handbook that there is an end of year review, but it does not entitle me to a raise, but I would like to negotiate for one, even if it is just another $1.25 or so per hour which I think is reasonable.

    I completely understand how crappy the economy is and really appreciate both sides of this discussion. Though I would like to see more success stories.

    Theres no way in fuck youre getting a $1.25 an hour raise at a part time job, especially in this economy, sorry. I mean, youre probably making under 10 dollars an hour i imagine, so youre asking for like a 15-20% raise.

    The fact that no one is hiring should be telling. They could probably fire you, put up a posting and have it filled at the end of the week. Also dont brag about your downtime. Downtime means youre sitting around getting paid to do nothing.

    Basically, youre making a mistake if you go in there and try and negotiate a raise. It will basically go like this "I want a raise, im thinking 1.25 an hour is reasonable.". Your manager will remember that youve already asked whats going on with raises and has told you that theres a freeze in effect, and also remember all the people theyve had to let go, some of whom were probably his friends. Then theyre going to tell you the same thing, that theres a freeze, and you cant have a raise. Then youll leave and he'll spend 5 minutes thinking about what an idiot you are.

    Yeah i know this isnt what you wanted to hear, but its whats going to happen.

    Zeon on
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  • Inquisitor77Inquisitor77 2 x Penny Arcade Fight Club Champion A fixed point in space and timeRegistered User regular
    edited February 2009
    You have almost no leverage at all. Even in a good economy, I would doubt you would have much leverage at all given how you have described the job. It's part time and low-skilled, meaning there are a lot of potential replacements for you out there, and the cost of training them is probably not significant enough to make them worry about losing you.

    I work in human capital consulting and I'm telling you right now that there are tons of very qualified, highly-skilled people out there without jobs simply because of the state of the economy, having absolutely nothing to do with their job performance. The lower on the skill spectrum you go, the worse it gets. Given what you have said thus far, you should have no illusions about how special or irreplaceable you are. There's a very high chance that should you try to go to the mat on this, you'll lose. As in, people will think you are disgruntled and will let you go and, as someone else already said, just re-hire one of your previously-fired co-workers. The fact that you still have your job should be solace enough, because it means that they value you more than the people they let go. Don't do something that will make them re-asses that calculation.

    Negotiating for pay raises even in good times is difficult enough. In your situation, I'd say you shouldn't even bother asking, because it just makes you look bad. The fact that they've been actively letting people go, reducing hours, and have flat out told you that no one is getting raises because of the economy, means you already have your answer. You're more than welcome to bring it up again, but if I were your manager I would be more than a little irritated that you're bringing it up again given the obvious state of the economy and that I've already told you no one (including ME) is getting anything anytime soon.

    Inquisitor77 on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited February 2009
    Zyre wrote: »
    Thanks for the replies. Yes, it is a part time job while I attend school and yes it is customer service. Not retail or food service, but I do assist customers and do a lot of accounting / data entry as well. (Nothing at the job is challenging, infact all the "work" I do can be done in less than an hour because I know what I'm doing, the rest of my shift is downtime / customer service - hence why I stated I'm over qualified for the job. ...and the fact that I've seen some of the writing skills some of my co-workers have and I seriously can't understand how they graduated high school so the standards here aren't exactly high.)

    The last time I looked at the newspapers and online for competitors positions doing the same thing I was doing was several months ago, it does not appear anyone is hiring right now. I did some salary/wage research and found that I'm just below national average according to some websites so I think there is room to grow. It is in my employee handbook that there is an end of year review, but it does not entitle me to a raise, but I would like to negotiate for one, even if it is just another $1.25 or so per hour which I think is reasonable.

    I completely understand how crappy the economy is and really appreciate both sides of this discussion. Though I would like to see more success stories.

    There aren't many success stories because there aren't many successes. You're not going to get a $1.25 an hour raise at a part-time customer service job in this economy. No one cares if you're over qualified, you're not going to get a raise for that though they might fire you and hire someone who isn't and pay them less, especially if you try for such a large raise, especially since they told you no one is getting a raise. Inquisitor is right, asking for this raise willonly make you look bad and don't be surprised if you ask end up replaced instead.

    VisionOfClarity on
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