purchasing a salary report?

[deca]

Is this worthwhile? I have an annual review next week that is also a compensation review. I would like a minimum of a 10% increase and more like 20%. My boss/employer has said he goes by salary.com to decide on compensation. He also says he pays the "low end" of their range "because we're a small company and small companies pay less." Which I think is a riot because I don't think he pays himself less, LOL. Anyway my counter-argument to that is going to be, "We may be small but we appear to be very successful and I contribute to that success."

Anyway I can get a lot of general data from salary.com that indicates that my base could probably be about 15K higher than it is, and not even be over the 50th percentile. I was just wondering if there is value in ordering the "personalized report".

Any other tips on negotiating a raise? I didn't negotiate my salary when I started a year ago because, well, I was coming from state government where they basically have an amount decided on and budgeted for and that's what you get. I have realized since being here a year that it was fully expected that I would negotiate for more and the initial offer was almost certainly lower than what was available. So I also feel like I need to make that up but I don't know the best way of trying to accomplish that.

[savingandinvesting]

Salary Comps

It can be hard to get very credible comparable salary reports because smaller companies can be so different. Sometimes - as harsh as it might sound - only a headhunter or a competing job offer that is very discretely pursued can validate your precise 'worth'.

[Fern]

If your boss has already let it be known they go by salary.com, i would say definitiely, why not? Even if you don't, be sure to print out the salary reports you can get off that site for free, and bring them to your salary review, just in case he disputes what the going rate is.

I would say that having been there a year, unless you got a recent promotion, that asking for 10% is really expecting a lot and that unless you've been doing a stellar 110% job or you are in some way irreplaceable or unique in your skills, i don't think you'll get it.

[deca]

Just wanted to update--the review was today and I ended up not referring to the salary.com info at all. My boss had a statement outlining a 5% raise and what he had based his numbers on. I heard him out, then explained that it was less than I had been thinking of, and I mentioned all the ways I have saved the company money in streamlining proceses, the unique skillset I brought where we can do things in-house that had to be bid out before, etc. He mentioned I get a lot of compensation in health insurance, which is true, my family of 3 is fully covered and the premiums are equal to about 20% of my pay. I said, "Yes, I like that compensation, it's great." Then he talked about the opportunities I have for bonuses, which have been running about another 10% of my pay. I acknowledged that, but also the fact that I don't actually have a lot of control over what bonus opportunities come my way, it tends to depend on what projects the sales manager sends my way. He went on to say that revenue is sort of volatile and he's more comfortable tying pay to activities that increase revenue or enhance our value as a company.

So then I said, "It sounds like you're saying if I want to increase my income, you'd like to see it come from something like a bonus/commission based on work I'm doing, than just a straightforward salary increase. Maybe we could come up with other opportunities that are more in my hands to recognize what I do that adds value." So then he proposed this thing called MBO (Management by Objective (I think?)) where we would propose certain objectives for me to meet, and on a quarterly basis if I meet the objectives then I will get a lump sum. And the objectives he proposed are essentially projects I would be doing anyway (which he acknowledged). But he said it more or less gives him an "out" if revenue should go down, that he's not committed to that higher salary amount longer than one quarter ahead. Also the company match on 401k is based on my base pay alone, so he's keeping down that contribution by keeping my base pay down. And he's not setting a precedent for a full 10% raise in one year. So it works for him, but it adds up to about a total 11% raise for me, so I am satisfied as well.

[sweeps]

he proposed this thing called MBO...

That came right out of his Management 101 textbook -- How to get an employee who asks for a raise off your back.

[deca]

That came right out of his Management 101 textbook -- How to get an employee who asks for a raise off your back.

I don't think I quite follow what you mean. We wrote down what my objectives for the next quarter will be, and the lump sum I will receive on October 1st. I realize there isn't as much cumulative value long-term by not getting my base pay raised more, but I still think overall it's a pretty good increase for my first year on the job. The 5% bonus pay is in addition to the 5% increase that was already on the table.

[sweeps]

Never mind -- just brought back some memories from MBA school. Congrats on the raise and bonus...

[scrava]

Deca I think this is great news!
Congrats!!

You got what you were looking for (11% more $) and your employer feels like if there is a cash shortfall he has an out. I would have gone for a similar arrangement if my only other option was a 5% raise in a heart beat!