Yearly Evaluation

[Starry436]

I had my review the other day and left very disappointed. I'm not sure if I felt so disappointed because it finally clicked how employers con the working class or maybe I am just looking at this entirely wrong.....

Last year, I received a 3% increase on my base pay plus a $1,500 bonus after a project was completed.
52k to 53,560 plus 1,500 = 55,060 for 2019.
This year I received a 3% on my base pay.
53,560 to 55,167.

So my boss is looking at me with this huge smile while I'm just staring at the paper, then my boss says what's the problem it's a great increase and I thought you'd be happy with this? I calmly said.... but it basically isn't going to be an increase. Because in my mind, I'm looking at what I made for the year 2019 compared to what I'm going to make in 2020. The increase was not going to be 3% but only $107.

It's going to cost my employer an extra $107 this year for my services, but they are trying to sell it to me like there's going to be an extra 3% leaving their bank account, coming into mine. My paycheck may look higher but at the end of the year, it practically washes out to the same as last year. My boss then tells me I'm the one confused, because it really is a 3% increase.
I hold a bachelor's, and I'm supposed to be a "senior level" professional in corporate accounting. I've worked for this company for a few years now and have made a lot of significant changes. I've been told on occasion that I am one of the top performers of the office. However, I should probably just stop giving 200% and give 40% like the rest of the office at this point.

I even had a discussion with my boss and their boss a few months back about my duties, title and pay not lining up with what the market or other companies are paying. It took a lot of guts for me to be able to hold that conversation and it was incenuated that something would be done about it. So, to be hit with this means they did not care one bit about that discussion and are hoping I continue to get more complacent until I'm too stale to seek new employment.

Am I looking at this wrong? Maybe I am but it sure feels rough and I've been thinking about it since it happened. Typically my raises have been a few thousand, but last year was the first time I received a "bonus", so this almost feels like a tactic they do in order to stagnate pay. I know they don't have to give raises, and I even said I am grateful for a job and the "increase", but I see this as wrong.

[disneysteve]

Am I looking at this wrong?

Sorry to say but I think you are.

Bonuses are just that - bonuses. They aren't guaranteed. They shouldn't be counted on. They should be viewed as one-time gifts, not normal practice. If you get one, that's great, but if you don't, you don't. You said yourself last year's bonus was from a particular project being completed. Maybe the company got a big payday for that project and decided to share the wealth. That doesn't mean it will happen every year.

I get a bonus at work too. However, a couple of years ago, they updated our employment contracts and included the bonus terms in the contract. Previously, the contract said nothing about the bonus. Now they are contractually obligated to pay us the bonus according to the formula in the contract. That makes it entirely different than. your situation.

All of that said, if your job isn't paying you a salary in line with what local competitors are paying, and your employer isn't willing to address that, it's time to find a new job.

[Like2Plan]

Your field may be different, but looking at my spouse's jobs--his biggest pay increases have always come from switching employers.

[disneysteve]

Your field may be different, but looking at my spouse's jobs--his biggest pay increases have always come from switching employers.

That's true in many fields today. It's the main reason that job longevity is hardly ever a thing anymore. Joining one firm out of college and staying there until you retire is exceedingly rare today but used to be commonplace. Upward mobility today comes from changing employers every few years.

[Butterscotch]

Bonus’s aside, a 3% raise is not a ‘great raise’. It’s hardly a COL increase and I’m willing to bet that your insurance premiums through your employer went up a tick as well this year.

If your worth more ask for it. Either from them, or another employer.

Go for your CPA. An accounting person at my company recently told me that the requirements for sitting for your exam have been lowered. I believe he said you don’t have to have 150 credits, or something along those lines. Look into it. If all you need are a few graduate level classes to take the exam go for it.

Oh, and see if your current company has tuition reimbursement for those classes. That might take the burn out of your ‘great raise’.

Good luck!

[Snydley]

I agree with Butterscotch. A 3% raise is not a great raise, it's cost of living and really should be expected. At my work we call it a merit increase and I think that's deceptive.

Bigger raises (10-20%+) that are not associated with a promotion are often given when someone is walking out the door in my experience.

[Starry436]

I understand a bonus shouldn't be counted on, but I guess it just seems like it's a mind trick to think I'm actually going to be bringing home 3% more when I'm not. It seems like that's how they make back their bonus that they gave in the first place.
I stick all of my raise increases right into savings so it's very telling when this year, there's basically no extra money to put in there. The bonus was a personal project that came from my idea, my push to do more for the company. I saw a need for an improvement and I set out to do it..they rewarded me that time with the $1,500.

I do see how it looks from both sides. I got my husband and parents POV and two saw it my way and the other saw it the way my employer did. It still is just so discouraging given all that I've dealt with at this company and I really let this affect my mood last week. I just shut down and get quiet when I'm disappointed in myself and others. I've had conversations over years with my boss yet it all remains the same so I'm at a crossroads right now. I'm not even sure how to proceed with my remaining time there. I just don't want to give any extra efforts any longer, this just solidified my feelings of them not appreciating or hearing me. I'm disappointed I still work there, I need to get over my fear and leave.

[corn18]

I need to get over my fear and leave.

Yup.

We found that our number one retention tool was to help your employees feel they are appreciated. Compensation is one method, but there are myriad others.

[Starry436]

Bonus’s aside, a 3% raise is not a ‘great raise’. It’s hardly a COL increase and I’m willing to bet that your insurance premiums through your employer went up a tick as well this year.

If your worth more ask for it. Either from them, or another employer.

Go for your CPA. An accounting person at my company recently told me that the requirements for sitting for your exam have been lowered. I believe he said you don’t have to have 150 credits, or something along those lines. Look into it. If all you need are a few graduate level classes to take the exam go for it.

Oh, and see if your current company has tuition reimbursement for those classes. That might take the burn out of your ‘great raise’.

Good luck!

I agree and yes, you're correct about the insurance premiums increasing! They've changed providers every year since I've been there.

Thanks for that advice, I will have to look into the CPA again if the criteria has changed. I had thought about a master's but decided against it right now.

[Starry436]

Yup.

We found that our number one retention tool was to help your employees feel they are appreciated. Compensation is one method, but there are myriad others.

Exactly! I agree 100%

[LivingAlmostLarge]

The biggest raises are from jumping ship. I"m trying to convince my DH to do it but he's very happy. I think he'll be underpaid by not jumping but I don't know how else to convince him. He got a large promotion this year which had a raise at their 2nd evalutions. They do evaluations 2x/year. But the problem is the stock comp from the promotion didn't hit and the bonus. So we have to see what he really got. I mean he got a 10% raise in base salary but the rest we're both curious to see.

[disneysteve]

I've had conversations over years with my boss yet it all remains the same

That's your sign that it's time to move on.

I was in a similar place a few years ago with my job. Stagnant income. The same issues over and over despite numerous conversations with my boss who agreed with me but never changed anything. I finally left and now make double (actually with total comp more than double) what I was making in 2017.

[Starry436]

That's your sign that it's time to move on.

I was in a similar place a few years ago with my job. Stagnant income. The same issues over and over despite numerous conversations with my boss who agreed with me but never changed anything. I finally left and now make double (actually with total comp more than double) what I was making in 2017.

That's awesome and exactly the scenario one could hope for. At what year with them did you realize your income had went stagnant? I'm curious as to why employers would choose to let that happen rather than retain the talent right in front of them? Especially if you had a boss who had seemed to understand your concerns but never implemented changes.

[disneysteve]

That's awesome and exactly the scenario one could hope for. At what year with them did you realize your income had went stagnant? I'm curious as to why employers would choose to let that happen rather than retain the talent right in front of them? Especially if you had a boss who had seemed to understand your concerns but never implemented changes.

I'm embarrassed to answer that. I was there for 17 years. My income was stagnant for about 10 of those 17 years. There were some little tweaks here and there but nothing substantial. I should have left long before but I didn't want to start over again in a new family practice. It was only when a friend suggested I look into Urgent Care, which she was doing, that I saw a way out.

[riverwed070707]

Your raise percentages are similar to ours (though we’ve had years with 1-2%!) but our bonuses are much larger - typically 10-20% depending on your paygrade. I’m one of the oddballs that has only had one employer since college. 13 years and counting. Craziest part is I’ve never even changed roles, just grown my existing role as opportunities presented themselves. I’ve found myself in your position a few different times. Some tactics that worked for me:

-inevitably the longer you work somewhere, you pick up additional responsibilities that used to belong to someone else. If the additional work is significant, Write yourself a new job title and description and do a written proposal for why you’ve earned the job. Bonus points for using numbers (cost savings, percent of productivity increases, revenue increases, etc). If your boss isn’t receptive, go over them

-apply for another job internally. If you’re valued in your current role other groups have likely noticed. My biggest raise came from applying and getting an offer for another job internally and letting my current boss get into a bidding war over me

Definitely wouldn’t be afraid to look elsewhere if those don’t work but I’ve just had better luck building my salary internally than having to start over convincing a brand new company I’m good at what I do. You deserve better and shouldn’t feel bad asking for what you’re worth. Good luck!