How to ask for a raise?

[BRPORSCHE]

Been working at the same company for almost three years now and just learned that a new hire with less experience is making just as much as I am. I just received a 5% raise in July and have received the same raise in previous years, but this really p!sses me off.

I have never asked for a raise before, I have actually been quite happy with my pay. Now here is the tricky part. I am transitioning over to a new position within the company. This position is under a completely new manager. Do I go to manager1 and ask him for a raise since I am still technically under him? Or do I go up to manager2 and ask him.

Both managers and I have a good relationship but admittedly I don't know which to ask. Or even what to say.

Game plan?

[looneybin]

if the transition means more responsibility, then yes, asking for a raise would be in order.

MANY companies have frozen their raises until the economy picks back up

[BRPORSCHE]

The economy is a little different in the sector I work in. Bussiness is booming.

With that being said though I would still feel like a pansy.

[boba]

Well if business is booming in your industry, one way to validate your worth is to go into the market and see what other companies think you are worth.

It is unfortunate but has been true for time immemorial that the best way to keep up with the market is to move from time to time. The long term employee is so often overlooked. It is not because you are not valued but that management just does not think.

Maybe by talking about the market value with your manager will get them to think.

[masraum]

Good luck, I'm curious what responses you get. So often, you have to threaten to leave to get a raise, and even then, it's not unusual for the raise to still not be as much as you could get by leaving.

I've had this happen at least twice. First time, we were all paid varying rates, but about 5-10 of the senior folks left for a lot more money. I heard that a bunch of folks got raises shortly after.

Another time, I gave notice, they tried to counter for a lot less than I was leaving for. I left. I got another friend to leave with me. They tried to get both of us back multiple times over the course of the next few years. Eventually, our new boss pissed him off and he went back, for way more than their last counter offer had been.

There was a saying at that place that the only way to get a raise (other than the small yearly raises) was to leave.

[bivenator]

What boba said is very true, my field was rockn for about 15 years. I moved positions about 5 times during that 15 years because of better offers. Check with your peers at other companies, see what they are pulling.
A 5% raise is pretty good and it may be distasteful to ask for more so soon.

If your research shows they are lagging then I would address the new boss.

I look at the new guys pay as unrelated to yours. What is your worth to the company? THey may value him more and thusly offered him more. Tread lightly if your gut tells you, it is probably correct.
Good luck.

[Zeke]

I guess the quest ion I have is when you say "transitioning" does that mean they transferred you or you asked for the position? Therein lies the answer.

What other people make is none of your business. What other companies may pay you is.

[Seahawk]

Originally Posted by BRPORSCHE

Been working at the same company for almost three years now and just learned that a new hire with less experience is making just as much as I am. I just received a 5% percent raise in July and have received the same raise in previous years, but this really p!sses me off.
Game plan?

Are you and the new hire doing the same job?

What differentiates you from the new hire?

Are you working to get ahead or just working?

What improvements, suggestions, efficiencies have you proposed in three years?

Does your company ever sit you down and discuss your performance...what is the feedback loop?

What are you doing personally to separate you from the other employees?

I ask these questions because they are important. Experience at a job is not important unless you use it to your advantage.

Seek feedback from both your bosses.

[BRPORSCHE]

Originally Posted by Zeke

I guess the quest ion I have is when you say "transitioning" does that mean they transferred you or you asked for the position? Therein lies the answer.

Milt, My old boss transfered me into the new position because they thought I would be a great fit in a up and coming technology.

[widgeon13]

How did you find out what the new guy is making and can you use that information to solidify your position? If they are paying him more than you and you both have the same credentials it would be hard not to just ask using that as rational. The job market today shouldn't require paying a premium unless the candidate has some special skills.

If you ask for a raise and they say no, start looking. They're just screwing you.

[stomachmonkey]

You have no say in the transfer?

First question I would have asked is "what are the increased responsibilities and what is the increased compensation that comes with them"

[jcommin]

The only person that can advocate for you is you. You just simply can't ask for a raise, just because the other guy makes more. I would look at what seahawk posted and ask yourself to evaluate your performance, average or do you go beyond what is expected of you. I would cite examples to justify the rquest. If you are reviewed annually, what is the feedback and have you expressed your goals and desires.

The other thing I will ask you to think about is..........rejection. You want to hear a yes but, how will you react to a no or a postponment. Don't go into a meeting without being prepared. 5% raise is very good for the overall working environment.

If you do look at another opportunity just to threaten - don't do it. Not good for you or the company. You got to be ready to leave.

[jluetjen]

In my old job, if you moved to a job with greater responsibilities, you didn't get a raise. You just moved from where you were in the salary range for your current job to (what I assume) is a lower point on the salary range for the new job. For example (using numbers from years ago...)

If you are making $40K in your current job, and you are at the 50th percentile of your scale, and moved into a new job with greater responsibilities, you'd still be making $40K, but now you'd be at the 25th percentile of your scale.

Generally if you were below the 50th percentile (ie. average), raises were pretty good. Once you got above the 50th percentile in your scale the raises got smaller.

All that being said, the way to ask for a raise is to have an offer for another job with the higher salary in-hand. You shouldn't show it, but you can bring it up like this...

Hey (boss) Dave, you know I wasn't looking but I was approached recently about a job doing YYY over at XYZ company. Their offer is really good. As I said I wasn't looking, I'm enjoying what I do here but the offer opened my eyes quite a bit. I was wondering if there is some way that we can work this out.

Note, you can usually play this card once with a boss. By the second or third time that you bring up a competing offer, he'll take the hint and let you go. So the corollary to this strategy is that you need to be prepared for your boss to say

"That's great Tom! Congratulations -- when is your last day going to be?"

Personally I've always looked at salary as something that is either adequate or not. Don't look at what other people are making (or claim to make) -- it's just an exercise in frustration for all parties. I have viewed my jobs by how much I enjoy them first, and if the salary is adequate second. Adequate is generally defined as more than I was making before, or having the potential to make more (see the pay review process described above.)

Finally, something to consider -- I'd rather be under-paid and over-appreciated rather than the other way around. You need to be aware of the "winner's curse" to asking for a raise. Congratulations -- you got your 5%. Be prepared for the demands on you to be increased in keeping with your new salary level. Also, when business turns south -- guess who is the first person to be considered for a lay-off if they are trying to trim costs?

[cgarr]

Show how you are making more money for the company and it will come.


Sent from my iPhone

[EarlyPorsche]

What sector are you in? How to ask for a raise is linked directly to industry.

[BRPORSCHE]

Oil field services.

[jcommin]

John brings up a very good point: " If you are making $40K in your current job, and you are at the 50th percentile of your scale, and moved into a new job with greater responsibilities, you'd still be making $40K, but now you'd be at the 25th percentile of your scale.

Generally if you were below the 50th percentile (ie. average), raises were pretty good. Once you got above the 50th percentile in your scale the raises got smaller."


Within your industry there are pay grades for specific job descriptions and in that salary grade is a low, mid and high. The pay grades overlap. You could be in the 75th percentile of a pay grade which could be below the 25th of the next highest pay grade. Most companies work to the 50th percentile. John is also correct that the %increase gets smaller over 50th and certainly over the 75th percentile. Do some research....... I'm restating what John is saying but he is spot on.

I don't advise pulling that threat card because: you can be bought to stay. Doesn't say much for your integrity and if I'm the boss, I now have a dim view of you and you are on my "list".

[Rick Lee]

I tried to ask for a raise a few mos. ago and was told no one is getting a raise until we complete a new round of reviews. I haven't had a base salary raise in five years, but have made more each year than the last one. Then I found out the review process has nothing to do with job performance (sales revenue), but rather how well we've all adapted to new training and other Kool-Aid-drinking teachings from our top boss. One of the words in the review criteria was "evangelizes." So, of course this will, at best, mean a modest raise that might take effect before year's end and then we have our annual perf. review in January again. Such a joke. But it's a good gig, so I'm not gonna make any more in base salary unless I threaten to walk and am really prepared to do so.

[jcommin]

I hate review time. You could have a personal best (year) and if the company is doesn't meet their goals, raises are few or non existent. You could have an average year in a record breaking company year and get an average raise. Typically raises are budgeted: say an average of 5%. Lets say there are 10 people in your department with the same pay grade. Using John's percentile analogy, an average review gets 5%, below average maybe 4.5, above average 5.5. My point is this: the spread is tight because of the defined budget. It's hard to reward exemplary work given the constraints.

[Rick Lee]

I've never worked anywhere where the annual reviews weren't totally predetermined. In fact, at my current job, about nine yrs. ago, the only person who got an "exceeds expectations" rating only got that because she was going to leave without a raise and they wanted to keep her. The rest of us got "meets expecations." At another job, the boss told his directors to fire anyone who got below "excellent." So we ALL got "excellent." Not all of us were, but the directors didn't want to fire people for anything less.