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RoguePoet01

RoguePoet01

Programmer
Oct 1, 2003
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Hi,

I was curious about what kind of raises people are getting these days. I was offered 3%, but managed to up it to a little over 4%.

That seems mighty low to me, especially because I think the cost of living index is about the same rate.

I don't want to pry, but input would be appreciated.
 
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At my last company 6% was max and to get that you had to walk on water. I think any more than that in today's economy is a blessing.


"Shoot Me! Shoot Me NOW!!!"
- Daffy Duck
 
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6% was the way it was at the place I used to work, an international engineering firm with strong ties to defense.

The criteria was the same as well.
 
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Anything above and beyond the cost of living index is a real blessing.

Some of my colleagues in the SV took paycuts rather than getting raises, just to keep their jobs.


Jono
 
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Today's job market is tough - if you're getting 3 or 4 percent you're probably doing well.

It is important to remember that there are several factors, which determine your raise. Here are some, but certainly not all.

The budget. No money, no raise.

Equal pay for equal worth. If you hire 2 software developers, one junior and one medium skills at 30K and 40k each and give them 5 percent each year there pay gap will widen since 5 percent of 40k is greater than 5 percent of 30k. However, in time, they may end up doing about even work. Therefore, you must take this into consideration and increase the lower salary or risk having them leave out the door because of unfair compensation.

The market. If you don't make an effort to re-recruit your employees others will. Therefore, take the market into consdieration.

Savings - what has the employee done to save the company money? Have they implemented a new program or process that is beyond the call of duty?

Company / Client knowledge - how well does the employee know your business and clients.

Performance. How well did the employee perform.




Jim Osieczonek
Delta Business Group, LLC
 
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I appreciate the input from all of you.

I genuinely think I deserved more than that, because I delivered some programs that were quite a bit more complex and useful than anybody expected me to deliver.

I also wrote two DDE interface programs that, had they been subcontracted out, would have cost us a pretty penny.

But we are going through a plant expansion, which is weeks overdue, so the money is tight.

I feel better about it, now.

Thanks.
 
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Another consideration for some, when you are a state employee you have to wait until the state legislature approves raises! We are finally getting a raise after 3 years! And like most, it's 3%. However, due to a reclassification of salarys and midpoints (some weird payroll calculation!) some of us will get another 3%, so the potential for 6% is there.

I'm praying for the BIG 6% myself!! Will find out in January!



Leslie
 
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I use to get 6% raises, but the current economy has sliced raises to 2-3%. And our review ratings were all dropped to reflect a lower rating for the same amount of work done previously which lowers the raises. These are all cost-cutting measures. In a tight economy, that's just the reality of the situation.
 
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The tight money is probably the issue. If you truly feel you deserve more, but cannot receive it because of the current budget shortfall, let you boss know that.

Don't hesitate to go to your boss and say, "I think I deserve more moneny and here is why..." Let the boss know you understand money is tight right now, but you hope to be compensated better when there is more money. If you go about it right, and polite, you will probably score some points with your boss.



Jim Osieczonek
Delta Business Group, LLC
 
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Just be happy you're getting a raise. I've been working my tail off, and I've delivered some great software, but until the company starts doing better, there is no chance for me to get a raise. In fact, I'm happy to still have a job.

To let me know that my hard work has been appreciated, I was given Friday through Monday off (paid) without even requesting it or using vacation time. I was told to go, rest, and don't even think about work. My boss even threw in movie passes for me and my wife. This is the closest I've come to a raise in the past couple of years. The money's just not there.
 
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Money is tight in most companies, and I'm like the rest of you receiving 3% raise. Thank god my company has a bonus plan in effect. But remember the guys at the top no matter what always get a nice fat raise and big bonus. Not receiving a raise is unacceptable, what makes a company is all the people not just a few.

MrGreed

"did you just say Minkey?, yes that's what I said."
 
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RoguePoet01

I understand where you are coming from in thinking that you deserve a better raise, but like others have said, consider yourself lucky to have a job at all. Especially one that gave you a raise.

I am one of the lucky ones that has a job but I haven't received a raise since January 1, 2002. My company has taken an end around on the raise issue. They have put a moratorium on raises. No one has been issued a raise unless they have been promoted. They did however restructure our job classifications and make two new levels. They then promoted about 20% of the employees to these new classifications and gave them raises. I unfortunately fall into a classification that is not eligible for these promotions. I think this is a very sneaky way for management to give raise to a select few. They simply created a smoke and mirrors show to pick and choose who receives raises. That way they are covered by any discriminatory law suits.

BAKEMAN [pimp]
 
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This all reminds me of the engineering firm I used to work for.

At the XMas party of 1992, the Head Honcho promised us all a fat bonus if we delivered "X" system on time.

Well, we did.

Funny thing, though, by XMas 1993, there wasn't enough money to give people bonuses, so he offered to take us all rafting next summer instead.

That was the year he bought a brand new Jaguar coup. That was the year his wife took a four week tour of Europe, and spent two weeks in Jamaica to rest from Europe.

That was the year he bought a $125k country club membership for himself and his family as a way of "networking" new business.

Yup...I remember that.
 
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I am thankful that I have a job...BUT, I haven't received a raise in about three years. This December I will find out if I get a raise or not. But news is...we're not going to get one.
 
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But remember the guys at the top no matter what always get a nice fat raise and big bonus.

Not always. In small, privately owned companies, the guy at the top is the first one to take a pay cut (or not get paid at all) when times get tough. Think about it. When a privately owned company loses money, that money actually does belong to somebody.

In larger and publicly owned companies, the people at the top tend to do well, even when the company goes bankrupt. However, if you work for a small company, a bankrupt company is generally the same as a bankrupt owner.

 
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Any chance you can get stock options in lieu of a pay increase?

Chip H.


If you want to get the best response to a question, please check out FAQ222-2244 first
 
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Chip,

If this company ever went public, or if the board decided to offer some sort of similar incentive, I think I'd probably go for it.

I work in dairy, and for some reason it's a pretty strong market.

I do see a lot of growth for this company; we've already partnered with a couple of larger companies from Ireland and Australia....

I just don't see them offering me a piece of the action unless I got a project of my own...which is the long-term game plan.
 
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chiph raises a good point. Can you discuss an alternate to a bonus or raise? Comp time or something? Personally I woulld stay away from stock options, as many people have learned they can hurt you even if they are worth something when you exercise. I believe the days of under a dollar options that will generate any real value are over. more common will be options that represent a more realistic worth of the company. I know people that have done very well from options and those that have been burned and those that have a piece of paper saying they Have x number of shares at x value and the current value is well the company doesn't exist anymore so I would say that x really doesn't matter. The investment world has become more savvy when it comes to investing in IT related companies and products. Companies are going to be held to the same or higher standard thay any other publicly traded company is held to. A companies stock value will be determined on there current profits not profits that could potentially happen 2-3 years from now.

"Shoot Me! Shoot Me NOW!!!"
- Daffy Duck
 
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A couple of points.

1. It is the budget. Again, if there is no money (at that really could be the case) you will not get a raise. Getting no-pay raise in a budge crisis is not unacceptable - it is reality. I am speaking from both sides (employee & employer on this).

2. Bonuses are good, but they rarely are considered when calculating your benefits including life insurance, flexible medical spending accounts, retirement, etc. In addition, if you receive a bonus rather than a percent pay raise, your next pay raise will not contain the bonus amount and, therefore, be smaller.

Keep in mind - bonuses have a good purpose and are a nice way to reward, but they are not part of our normal compensation and are excluded from other benefits.



Jim Osieczonek
Delta Business Group, LLC
 
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