Pay Raise: How much can you expect?

goldenlight

So much for employee loyalty.

Chitownjedi

goldenlight wrote: »

So much for employee loyalty.

[Excuse me if the countless articles available like these don't cause me to feel for the companies and their loyalty problems...

Compensation for chief executives at American companies grew 15 percent in 2011 after a 28 percent rise in 2010, part of a larger trend that has seen CEO pay skyrocket over the last three decades. Workers, on the other hand, have been left behind.
Since 1978, CEO pay at American firms has risen 725 percent, more than 127 times faster than worker pay over the same time period, according to new data from the Economic Policy Institute:
From 1978 to 2011, CEO compensation increased more than 725 percent, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period[

Study: CEO Pay Increased 127 Times Faster Than Worker Pay Over Last 30 Years | ThinkProgress




HP to cut up to 16,000 more jobsHP (HPQ) announced Thursday that it will cut an additional 11,000 to 16,000 jobs, after previously revealing plans for 34,000 layoffs.[]
]The news came as part of the company's second-quarter financial results, which were in line with analyst expectations. Shares rose 5% Friday after slipping in after-hours trading Thursday evening.
]HP said the latest layoffs would come across all its business units and geographic locations, and would generate $1 billion in annual savings beyond the $3.5 to $4 billion projected from the previously announced cuts.
]"No company likes to decrease the work force, and we recognize that this is difficult for employees," CEO Meg Whitman said in a conference call with analysts. "I think everyone understands the turnaround we're in."
]HP originally announced the layoff plans in 2012 in an effort to streamline its teetering PC and services businesses. The company has been contending with consumers' shift from PCs to mobile devices, as well as a declining printing business and some ill-fated acquisitions.

HP to cut up to 16,000 more jobs - May. 22, 2014

boobobobobob

goldenlight wrote: »

So much for employee loyalty.

More important to get paid what you are worth. If that requires you to jump ship then so be it!

broli720

I got 8.5% last year and 3.5% this year. I'm moving into a new role this summer so I'm assuming I'll get another 8.5% at least. Anything under 6% is considered a raise. Anything over is a promotion. I think for my age (25) that my salary is more than fine. Loyalty is important believe it or not, but you just have to make sure you're not taken advantage of.

To make it big in most companies you have to put in time if you aspire to reach that executive level. Sometimes this includes being stagnant for a few years for something to open up...

paul78

@craigaaron - I noticed that you are from the UK so US-centric responses may not necessarily apply to your geographic area or industry that you support.

But generally for me (I live in the US and I work in financial services) - I'm usually very content to get anywhere from a 1% to 2% raise. I consider that to be fair and equitable if I perform well.

I'm actually very surprised to read some of the posts. I'm not particularly sure why folks believe that employers are required to provide raises for business as usual work.

eLs

Work for MSP so we provide IT services and make money. Client wrote a good letter to CEO about me and got recognized not too long ago before review. I think I got 4% over 1-2% because of it but still wanted more and did not even get a chance to negotiate at all.

I gained a couple of certs since I got hired and learned a lot and doing a crappy overnight shift and was hoping to move past base salary above 40k. Nope got a raise and still crappy for NYC living with a bachelors degree and some certs.

Going to have to leave but only getting contract to hire offers which I do not feel comfortable leaving a full time permanent position with benefits.

craigaaron

paul78 wrote: »

@craigaaron - I noticed that you are from the UK so US-centric responses may not necessarily apply to your geographic area or industry that you support.

But generally for me (I live in the US and I work in financial services) - I'm usually very content to get anywhere from a 1% to 2% raise. I consider that to be fair and equitable if I perform well.

I'm actually very surprised to read some of the posts. I'm not particularly sure why folks believe that employers are required to provide raises for business as usual work.

It seems that average of 2% to 3% is the normal anywhere unless you jump ship where ever you are in world.

Chev Chellios

jibbajabba wrote: »

Companies in the UK don't even care about inflation increases. I haven't gotten one in 5 years. To make matters worse, train companies are allowed to increase prices above inflation as well. When I started working in London, my annual ticket was £4,200 ($7,200) now three years later the same ticket is £4,900 ($8,300) per year. Electricity and Gas (not petrol but house gas) increased by about 30% andngas (car) increased by about £0.60 ($1) per gallon. Council tax (we pay tax for the privilege to have a roof) increased by 16%.

Salary: no raise, changed job and earn less.

x2- well said dude! I would be amazed with a 2-3 % pay rise but instead we get nothing and the cost of living is forever rising, even other companies aren't paying much so jumping ship holds no meaningful salary increases in most parts of the UK. Keeping looking at other opportunities but it seems tough everywhere at the moment...

RHEL

paul78 wrote: »

@craigaaron - I noticed that you are from the UK so US-centric responses may not necessarily apply to your geographic area or industry that you support.

But generally for me (I live in the US and I work in financial services) - I'm usually very content to get anywhere from a 1% to 2% raise. I consider that to be fair and equitable if I perform well.

I'm actually very surprised to read some of the posts. I'm not particularly sure why folks believe that employers are required to provide raises for business as usual work.

The problem with no raise or a % raise is that with annual inflation, every year that you do not receive a raise, the value of your paycheck buys less -- essentially a paycut.

Many people expect a natural progression with their jobs -- not simply to get by but to move forward. With each year, you're increasing your tenure with an organization and your experience supporting their business. Additionally, smart employees understand their market rate and it is up to organizations to actively research this as well in order to retain top talent.

I've been in positions with no retention efforts. Unless you're backed into a corner where opportunities are limited and you need to feed your family, you're doing yourself a disservice to not attempt to progress as much as you can. If your company isn't supporting that, perhaps its time to move on.

craigaaron

RHEL wrote: »

The problem with no raise or a % raise is that with annual inflation, every year that you do not receive a raise, the value of your paycheck buys less -- essentially a paycut.

Many people expect a natural progression with their jobs -- not simply to get by but to move forward. With each year, you're increasing your tenure with an organization and your experience supporting their business. Additionally, smart employees understand their market rate and it is up to organizations to actively research this as well in order to retain top talent.

I've been in positions with no retention efforts. Unless you're backed into a corner where opportunities are limited and you need to feed your family, you're doing yourself a disservice to not attempt to progress as much as you can. If your company isn't supporting that, perhaps its time to move on.

so your saying the IT market in the UK is not great if employed or not... so how do you survive?

RHEL

craigaaron wrote: »

so your saying the IT market in the UK is not great if employed or not... so how do you survive?

I have no knowledge of the IT market in the UK... I was replying to paul78's comments about why people 'expect' a raise for doing their job.

zxbane

Chitownjedi wrote: »

[Excuse me if the countless articles available like these don't cause me to feel for the companies and their loyalty problems...

Compensation for chief executives at American companies grew 15 percent in 2011 after a 28 percent rise in 2010, part of a larger trend that has seen CEO pay skyrocket over the last three decades. Workers, on the other hand, have been left behind.
Since 1978, CEO pay at American firms has risen 725 percent, more than 127 times faster than worker pay over the same time period, according to new data from the Economic Policy Institute:
From 1978 to 2011, CEO compensation increased more than 725 percent, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period[

Study: CEO Pay Increased 127 Times Faster Than Worker Pay Over Last 30 Years | ThinkProgress




HP to cut up to 16,000 more jobsHP (HPQ) announced Thursday that it will cut an additional 11,000 to 16,000 jobs, after previously revealing plans for 34,000 layoffs.[]
]The news came as part of the company's second-quarter financial results, which were in line with analyst expectations. Shares rose 5% Friday after slipping in after-hours trading Thursday evening.
]HP said the latest layoffs would come across all its business units and geographic locations, and would generate $1 billion in annual savings beyond the $3.5 to $4 billion projected from the previously announced cuts.
]"No company likes to decrease the work force, and we recognize that this is difficult for employees," CEO Meg Whitman said in a conference call with analysts. "I think everyone understands the turnaround we're in."
]HP originally announced the layoff plans in 2012 in an effort to streamline its teetering PC and services businesses. The company has been contending with consumers' shift from PCs to mobile devices, as well as a declining printing business and some ill-fated acquisitions.

HP to cut up to 16,000 more jobs - May. 22, 2014

Just wanted to say this post was very informative, thanks for this!

j33per

The 1 to 3% raise seems to be the new standard... along with "calibration" where your review gets "normalized" - basically a forced normal distribution where managment must define a small number of low performers, a large group of middle and a low group of high performers. I completed 8 certifications from December of 2013 to Feburary 2014 with an April review and a 2.5% raise. I have read contradicting views that the actual performance distribution of employees does not translate to a traditional bell shaped (normal) distribution. Just another way for the man to hold you down and dilute your performance review.

PurpleIT

RHEL wrote: »

I've always assumed anything over 2-3% would have to be in the form of a promotion... Especially in a larger organization.

Back when I had a job where I did the employee reviews (pre-recession), 2-3% was the standard "you did OK and we want to keep you" raise; 4% was for above average employees (maybe 15% of the workforce) and 5% went to the top 5% of the workers because they were the ones we really wanted to reward in hopes of keeping them around.

PurpleIT

boobobobobob wrote: »

I think raises in the 2-5% are the norm, I usually get 4% per year. I think it's odd that people aren't getting pay raises every year... every position I've held gave yearly increases.

Granted I am in a government job, but everyone here has had ONE 3% raise in the last 6 years. There have been some trade-offs such as extra training, GREAT benefits, and I worked with my boss to get reclassified so I did get a 15% bump in pay, but overall this is not an uncommon issue.

paul78

RHEL wrote: »

The problem with no raise or a % raise is that with annual inflation, every year that you do not receive a raise, the value of your paycheck buys less -- essentially a paycut.

Many people expect a natural progression with their jobs -- not simply to get by but to move forward. With each year, you're increasing your tenure with an organization and your experience supporting their business. Additionally, smart employees understand their market rate and it is up to organizations to actively research this as well in order to retain top talent.

I've been in positions with no retention efforts. Unless you're backed into a corner where opportunities are limited and you need to feed your family, you're doing yourself a disservice to not attempt to progress as much as you can. If your company isn't supporting that, perhaps its time to move on.

I don't necessarily disagree with you but employee retention is very different in my mind than employee compensation for a specific role. The average inflation rate in the US for the past 2-3 years is around under 2% and even the latest COLA from social security is 1.5%.

I am a firm believer in the free-market economy so employee and employer relationships to me is simply a matter of supply and demand.

In this case, let me take the management point of view when it comes to compensation. If I have a specific job to fill with a specific skill-set and I'm willing to fund it between x to y dollars, there really is no reason to increase an employees compensation level beyond the required contribution of the employee. However, if the employee grows beyond the required contribution value of the role. There are really just 2 options - (a) find a new role for the employee where the employee can utilize the new skills with the matching compensation (b) do nothing and expect similar output or assume that the employee will eventually leave and backfill.

Ideally a mature organization has a retention culture of trying to move people into the right roles at the right compensation level. As a manager, I don't support the use of raises to retain employees. I think that's just lazy management to retain employees.

hellolin

the_Grinch wrote: »

I'm looking at a 6% raise in August I believe. First time I have ever gotten above 3%...

wow that sucks for you guys who posted here, I am an intern in this company but my manager just told me how their yearly review and raise works. The min. raise that everyone gets if no ****-ups is 3%, and if you are a hot charger you get 4 to 6% raise, and even the lowest help desk techs make 50K to start here....such a good thing to work for a big company lol

It just sound like some of you have horrible IT jobs, and IT is actually a very hot field right now, at least in some part of the US. If you think IT job sucks and don't pay more, try a liberal arts major grad or even a business grad, can't even find a starting job, at least we IT people can find a help desk position rather easily.