How do I argue for a raise from my employer?

[sethmachine]

I was recently promoted, and after my boss went over the new salary, he told me that my compensation index was around 80% for employees of my level.

That means I'm 80% below what the average salary of other employees at the same job level at our company make.

Before I got promoted, my compensation index was 96 (after getting the maximum raise for performance the previous year).

My boss said it was unfortunate and that they try to get every to 100% compensation ratio.

He said they would try to do what they could over the next few months to correct that.

Obviously, the squeaky wheel gets the oil. I'm sure if I don't raise this issue again, my next raise won't be until our annual raises.

How do I start this conversation with my bosses?

Besides being so far given a perfect performance grade from my supervisors and promoted rapidly, I'd like to begin to settle down and have a more quality life style.

That would require taking a mortgage, and the cost of real estate in Massachusetts is really not in line with reality, considering most of the houses here are well over 50 years old.

Is that a valid argument--that I want to be able to purchase a home, which is why I really need a compensation index closer to 100%?

[rennigade]

You apply for another job that is offering a higher salary...when they offer you the position take it to your boss and tell him you're walking unless they match. If they like you they almost always match. Its a shame employees have to do that but thats how it works.

Why would an employer pay you $50/hr when you will work for them for $30/hr?

[GoodSteward]

Why would an employer pay you $50/hr when you will work for them for $30/hr?

Sadly, this becomes the mentality of a company when they loose site of their employees and only look at the bottom line. I watched that happen in my last job.

[tripods68]

My boss said it was unfortunate and that they try to get every to 100% compensation ratio.

He said they would try to do what they could over the next few months to correct that.

Send a private meeting to your boss again, and ask him,

"Heyyy...remember, our last discussion....fill in the blanks"...

Boss reply, "Yesssss I remember".

You reply back "It's been a few months now, so where are you in trying to get my salary corrected to 100% percent ratio with everybody else in the company?"

WAIT!.....DO NOT SAY ANYTHING TO HIM AT THIS POINT.

Just be quite and wait for his response.

[snafu]

Do you believe, newly promoted, you are paid 80% of what others doing the same job substantially longer, are paid?

Have you looked at LinkedIn or any of the electronic sites like http://www.payscale.com/ that purport to identify salaries in specific postal codes? [I've no personal knowledge of any of these and no specific suggestion] What are new hires paid for this position in other, similar organizations?

I mention, employers pay scale is typically based on a combination of education, duties, level of responsibilities, competence, teamwork, co operation and specifics to the organization.

Their mandate doesn't include employees family size, problems, vehicle payments, cost of rent or mortgage or choices they make. Many organizations offer bonus to staff who exceed their targets, add considerably more value than colleagues, make suggestions that they action that makes profit significantly higher.

As a newly promoted staffer, likely on a learning curve are you on a grid? If you were the Chief Finance Officer tasked with keeping profit as high as possible, would you give Seth more at this point?

[corn18]

I was recently promoted, and after my boss went over the new salary, he told me that my compensation index was around 80% for employees of my level.

That means I'm 80% below what the average salary of other employees at the same job level at our company make.

Before I got promoted, my compensation index was 96 (after getting the maximum raise for performance the previous year).

My boss said it was unfortunate and that they try to get every to 100% compensation ratio.

He said they would try to do what they could over the next few months to correct that.

Obviously, the squeaky wheel gets the oil. I'm sure if I don't raise this issue again, my next raise won't be until our annual raises.

How do I start this conversation with my bosses?

Besides being so far given a perfect performance grade from my supervisors and promoted rapidly, I'd like to begin to settle down and have a more quality life style.

That would require taking a mortgage, and the cost of real estate in Massachusetts is really not in line with reality, considering most of the houses here are well over 50 years old.

Is that a valid argument--that I want to be able to purchase a home, which is why I really need a compensation index closer to 100%?

That is not a valid argument. Most bosses care about their employees (I do) but pay is based on performance not need. That being said, when I do salary reviews, I look at the 75th percentile. If you are there, you are adequately compensated. If you want more, I will need a reason. If you are newly promoted, I will need at least one performance review in the new position to consider you for a raise. My advice is to perform well and wait for the first performance review to ask for a raise.

[Jluke]

So you got promoted from Level A to Level B and expect to be paid the maximum that a Level B employee can receive?

I'm not sure how the company is structured, but I would think you need to be in the position for a while to grow into the highest achievable salary.

Unless you're on a fast track within the company....

[TexasHusker]

What you earn at a company is reflective of your value to them - nothing more, nothing less. If you are being paid 20% less than so-and-so, then they don't value you as much as so-and-so.

Those that bring big-time value to a company rarely have to negotiate a raise - the employer is falling all over themselves to keep them happy with raises and perks.

If you are a high-performer and your company doesn't see it, declare free agency and go to work at a company that does.

[Nutria]

I was recently promoted, and after my boss went over the new salary, he told me that my compensation index was around 80% for employees of my level.

That means I'm 80% below what the average salary of other employees at the same job level at our company make.

No, it means that you're 20% below comparable workers.

[sv2007]

I was recently promoted, and after my boss went over the new salary, he told me that my compensation index was around 80% for employees of my level.

That means I'm 80% below what the average salary of other employees at the same job level at our company make.

Before I got promoted, my compensation index was 96 (after getting the maximum raise for performance the previous year).

My boss said it was unfortunate and that they try to get every to 100% compensation ratio.

He said they would try to do what they could over the next few months to correct that.

Obviously, the squeaky wheel gets the oil. I'm sure if I don't raise this issue again, my next raise won't be until our annual raises.

How do I start this conversation with my bosses?

Besides being so far given a perfect performance grade from my supervisors and promoted rapidly, I'd like to begin to settle down and have a more quality life style.

That would require taking a mortgage, and the cost of real estate in Massachusetts is really not in line with reality, considering most of the houses here are well over 50 years old.

Is that a valid argument--that I want to be able to purchase a home, which is why I really need a compensation index closer to 100%?

A good manager will not lead you on, so if your manager told you "next few months", then let them work it out. Bring it up at your regular 1:1 every now and then to check on progress.

Also, you mentioned that you are at 20% in your new pay grade and 96% in your previous pay grade, are you sure on that? Because pay grades overlay a lot (esp the higher grades). OTOH, if you are only 20%, it is pretty easy to argue a raise for you if you are good. Increases inside pay grades is easier than promotions, which generally requires higher level approvals.

I don't know your level or field; so the above is just general comments based on tech field.

[sv2007]

You apply for another job that is offering a higher salary...when they offer you the position take it to your boss and tell him you're walking unless they match. If they like you they almost always match. Its a shame employees have to do that but thats how it works.

Why would an employer pay you $50/hr when you will work for them for $30/hr?

This is pretty difficult sell esp for a highly valued employee.

Generally companies pay a fair-ish wage (and constantly remind you of that fact by feeding you independent salary surveys); yes, jumping ship will increase your pay, but not by much (and sometimes you lose money because you lose all your unvested options/RSUs).

I've only changed jobs once purely based on salary, and I regret it (I wasted 3 years). I change jobs for long term gains: new company has good future, where I can expand myself and their products.

As a manager, I try to get everybody a fair share of the allocated money based on their current and future contributions (and the allocated money , for the most part, is based on salary surveys and how well our products are doing, i.e. upper level is also trying to be fair too). If somebody comes to me like what you described, unless that person is very good usually there's nothing that can be done. Even for very good person, the retention is difficult because of the complications of mid-year raises, i.e. other managers must generally agree plus either the VP or exec-VP based on the person's paygrade (this is at a large cap). It is harder than annual raises.

[AJ444]

Company/Job Hop, in my experience you have to do it at the Professional and then again at the Managerial level to get to where you want to be in the pay band.

The people that I know that have worked their way up in the same company are never paid at 100% of the band, I'm sure it exists, but the road less traveled.

[bjl584]

The best way to get a raise is to find a new job with a different company.

If you want to stay where you are, then you need to do your homework. Arm yourself with as much knowledge as you can pertaining to your job and how much you should be getting paid. It's one thing to just say you should be getting more, but it's a lot more effective to come to a meeting with your boss and HR with some reports and documentation showing them what the average pay is in your industry for your job.

[dczech09]

That is not a valid argument. Most bosses care about their employees (I do) but pay is based on performance not need. That being said, when I do salary reviews, I look at the 75th percentile. If you are there, you are adequately compensated. If you want more, I will need a reason. If you are newly promoted, I will need at least one performance review in the new position to consider you for a raise. My advice is to perform well and wait for the first performance review to ask for a raise.

tomhole brought up some excellent points. Ultimately, your pay-raise is effective when you are.

I was promoted back on April 1st, and my new salary is at the lower range for people with my new job title. However, my new salary is quite a bit higher than what my previous salary was (which was at the high end of my previous pay band).

It sounds like this is similar to what you are dealing with. It is perfectly normal. You are not going to get paid the same as veterans in your new job. And you shouldn't! They start you out low so that there is room for raises.

Bottom line: you start out at the bottom when you get promoted to a new pay band. This should not be a surprise. Also, this is not a bad thing because it means there is room for growth (salary-wise).

Work hard. Knock your next performance review out of the park. When it is time for annual increases, have some reasons for why you should make more money. If they offer 3% at that time, ask for 4% or even 5%. Just have some solid reasons for the asking for the raise (not because you want to buy a house - they do not care).

Looking for a different job to see what they offer is a risky move. It may backfire on you and force you to take the new job (which may not be as transparent with compensation).

Be happy that you got a promotion and a raise in this economy. There are many people still struggling to even find work.

[Outdoorsygal]

So were you able to get that update regarding my raise? just say that


What is interesting is your boss told you you were essentially paid less. So of course your going to ask him what came of your possible raise, who wouldn't.