I just received my annual raise, and I don't feel it matches what I'm worth to my company.
A little more information: I joined this company three years ago straight out of University, starting on the lowest software developer rung. A rung that I'm still on, though my manager has engaged the paperwork to promote me. The new position would have a minimum salary amount considerably higher than my current level, but it's a slow and tedious process, and I have no idea if it will be finished when salaries are reconsidered in June for people earning less than their position's minimum salary. I had been hoping to get a better raise to tide me over until then, but a combination re-jiggering of annual performance scores and how much is awarded to whom means I got the same relatively small raise I did last year, which is worth less due to price rises.
In my three years with the company, I've become the Senior Expert on a technology behind some of their forward facing stuff, and only one other person that can handle this is employed by the company, and I was the one who trained him. The only other guy who could was also trained by me but left later, and because he's older he made like £9,000 a year more than I did. According to my research, I'm £8,000 a year below the average salary for a software developer in my city with my level of experience, and if I'm promoted in time for the June readjustment I'd still be below average. In short, I'm not sure the situation can continue as is.
I was unable to find anything about this in my company's HR department, but does anyone know the best way to initiate a salary negotiation when the company in question has an automated annual salary adjustment system?
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Are you willing to quit your job right now?
And are you a valuable member that is hard to sufficiently replace?
Do you add value to the company in some way, can you explain how you do? Can you show it in dollars with reports?
Do you know how other reasonable companies handle this eventuality? They give you a raise to the minimum salary of your new position when they promote you.
Edit: @BlazeFire has the right idea.
You have the longevity and the knowledge to move on up, ask if you can take on additional roles and titles with the benefits that come with that, and make sure to say you want to do this outside of the usual yearly review/promotion process.
You can strengthen this case with reports and charts that show what you've done, what you can do (trouble ticket/resolutions in code, etc). Ultimately make sure to say that you're dissatisfied with your current position and lack of mobility (don't threaten to leave yet). If they seem really unsympathetic to your plight then feel free to do whatever you want. Deal with it knowing they know you're dissatisfied or turning in your notice (that's the nuclear option though).
Generally though, this is what sucks about salaried positions, you stay roughly around what you were hired at unless you're a sufficient kiss-ass and know how to network your way up the corporate ladder. Get good at showing why you're a benefit to the company with real numbers and money values and it gets so much easier to negotiate raises.