Got a raise at work

[gekkoplus]

Just got a 3% annual raise and a 5% annual bonus. I was rated as "Significant Contributor" which is just a level below "Exceptional" (the top most level).

I was not expecting any bonus but I was expecting at least a 5% raise. (tech company in silicon valley)

I am not sure if lower than expected raise in annual salary added with an unexpected bonus is good or bad. Given the layoffs and hiring freezes everywhere, I just accepted whatever was offered to me at this moment.

[kork13]

fair point on taking what is given... by the numbers, though, the higher raise would be better than the higher bonus. bonus is one-time cash, raise is permanent, which also builds on subsequent years' raises.

However, 3%/yr is fairly common for salary increases. Also, bonuses seem to be more based on performance, salary on merit/experience/background and job requirements. So in either case, you still haven't done poorly for yourself. Congratulations!

[maat55]

Originally Posted by gekkoplus

Just got a 3% annual raise and a 5% annual bonus. I was rated as "Significant Contributor" which is just a level below "Exceptional" (the top most level).

I was not expecting any bonus but I was expecting at least a 5% raise. (tech company in silicon valley)

I am not sure if lower than expected raise in annual salary added with an unexpected bonus is good or bad. Given the layoffs and hiring freezes everywhere, I just accepted whatever was offered to me at this moment.

In this atmosphere, you should be glad. I would be angry I got second place.

[JinCO]

The 3% annual raise seems a little low, but I'm sure the current financial state has something to do with it. I would focus on doing what is in your control and continue to perform well at work. I have had years where my raise was 0% in poor economic times (2001), but I've also had annual raises of 30% in good times.

[jIM_Ohio]

FYI- if you take the raise percent, and put 1% less into 401k, you will increase take home slightly and be able to save close to 100% of the raise value.

congrats on the raise.

[LivingAlmostLarge]

My DH in 2 years has only gotten 3% raises with top marks for contributing. What does that mean? His salary has gone down since he started. But he's also like you gotten bonuses. But bonuses can go away like that!

Sigh. It's tough because it's better than not having a job.

[TBH]

I work in education and my raises in our current contract are LESS than 3 percent annually. I think they're around 2.76% per year.

But nobody goes into teaching for the money, right? At least the benes are good.

So, what are you going to do with the raise and the bonus? Tell us. We like to live vicariously around here.

[cschin4]

Raises are nice. However, the best way to raise one's income is to change jobs. Once you are in, you are pretty much at the mercy of the traditional low raise. In my experience, by changing jobs, that is the time to command a larger salary.

[gekkoplus]

Originally Posted by jIM_Ohio

FYI- if you take the raise percent, and put 1% less into 401k, you will increase take home slightly and be able to save close to 100% of the raise value.

congrats on the raise.

Good advice Jim. But I am already making maximum contributions into my 401K. I will put this money into wife's roth account.

Originally Posted by TBH

I work in education and my raises in our current contract are LESS than 3 percent annually. I think they're around 2.76% per year.

But nobody goes into teaching for the money, right? At least the benes are good.

So, what are you going to do with the raise and the bonus? Tell us. We like to live vicariously around here.

A part of these are gonna go into credit card payment as I am paying close to 7% interest on them. Remaining is going into wifey's Roth.

Originally Posted by cschin4

Raises are nice. However, the best way to raise one's income is to change jobs. Once you are in, you are pretty much at the mercy of the traditional low raise. In my experience, by changing jobs, that is the time to command a larger salary.

I agree with you on that. I had a separate thread on the same topic a couple of months back. I already had 3 jobs in 5 years for various reasons. Now I work for a company people usually dream to work for. I plan to stay here for some time (couple of years) and absorb poverty for the sake of a better resume.

[cschin4]

Yes, changing jobs is often expensive and draining. And, there is a time when you just accept you are where you want to be as the grass isn't always greener.

[skruggie]

there are values to staying at a job that are outside of salary. As long as my company will have me, I intend to stay there. That would be for the next 30-35 years.

[gekkoplus]

Originally Posted by skruggie

there are values to staying at a job that are outside of salary. As long as my company will have me, I intend to stay there. That would be for the next 30-35 years.

Hey one might end up as a CEO after staying with a company for that long..

[Johansen8]

Oranges!

congratulations!