[jord0205]

Here is the deal:
In September our company has our annual reviews. So I'm thinking of what can I do starting now to add that extra punch when September comes. (also just after my first year is completed at the company)

My biggest concern(s) is that I'm already paid above industry average, our market is slow, and I don't really know what a good number is; $1, $2, pennies..

With this being my first year out of college (I lived through it successfully), what should I expect? What should be discussed, how much 'extra work' is necessary for any kind of raise?

Any thoughts?

[Chrissy Scivicque]

Oh, such a good question!! Here's what I would say. Generally speaking, yes, an annual "cost of living" raise is to be expected. It's not usually very much - maybe 4% of something. Just enough to keep up with inflation. That is typically what you can expect if you're a "satisfactory" worker.

Depending on the environment in which you work (corporate versus private) your manager may have a range that they can work within for those who perform above satisfactory standards. For example, they may be able to offer a 5 to 7% raise. If you work at a small/mid-sized private company, you may have more room for negotiation in which case, I'd refer you to an article I wrote a long time ago. Below is a synopsis and the link to the article.

Steps to take when asking for a raise:

1. Do your research - know what people in comparable positions in your area with similar experience levels are making. Some more info on this particular subject can be found in this article: Help! I'm Underpaid!

2. Know why you deserve a raise - never use your personal circumstances to defend your request. For example, "My daughter's getting married. I need the extra cash". That's not convincing! Use your work achievements to justify your request.

3. Be prepared to negotiate - know what you'll accept. Check out this article that shares some "tactics" you may encounter or want to try yourself - Negotiating Tactics Can Give You an Edge.

4. Create a path - if you don't get what you want today, ask how you can get it tomorrow. Create solid professional goals that will lead you to your financial goals.

5. Be polite - don't get "in your face" about what you deserve. Show that you love your job and you're in it for the long haul.

Good luck. For more, you can also check out the article I wrote on How to Get a Raise.

[tlangley]

Ahh! Yes; this is a very good question. I've got 21 years under my belt with both private/public, large/small companies; and let me tell you that "you never know what to expect". I've even experienced an actual "salary decrease!", due to the falling market of the manufacturing industry that I was in at the time. I took the decrease because I loved my job and I had faith that the market would rebound, and also in the fact that the company would appreciate and respect the fact that I was willing to stay with the company through hard times. However, I've also been with companies that simply did not recognize the magnitude of the workload I was handling or the significance of my responsibility, and I've had to step up and request that I be paid what I thought was fair compensation. Whether you're waiting around expecting an annual increase or you step up and request one, I'll also say this (which seconds Chrissy's #1 and #2 suggestions); understand and justify your wage increase, know your market and competition, and be prepared to negotiate/stay where you are/or leave. Keep it completely business and professional. Don't pose it as a "threat" that you will leave "or else"; but simply prove to them your worthiness and dedication to the company.

In times like today (a recession), companies are more conservative on annual wage increases; that's to be expected, even if the cost of living has increased. The one thing that I would suggest is find a way to save the company money or make the company more money! This will absolutely justify any wage increase that you expect or deserve. It takes two to tango: You and Your Employer. The arrangement has to be mutual; otherwise, you're both wasting time.

Hope these are some words of wisdom that you may find useful.

[Patricia]

At the last few places I've worked, we did get annual raises. The amount however was based on how well you performed. If you scored high, your raise reflected that. I like raises that are based on merit because then you can actually work to get a better raise.

If you want to put yourself on the raise radar, be punctual and available.

I agree with Chrissy's #2. So many people use personal reasons for a raise, but our personal needs are not a good reason for a raise. It has to be based on our work performance. My brother in law's famous line is "I need a raise because I have three kids to feed and a mortgage to pay". Unless his work is reflecting his need I don't think he will get the raise no matter how honourable his need is.

[Jennifer Flaten]

Experience with both small(i.e tiny) companies and mid-sized. The bigger the firm, the more chance you can get a COL (cost of living) raise or a merit raise. Tiny firm, good luck! If times are good and you are a great worker, you will probably be able to negotiate for one. If times are bad the small firm will tell you that you are lucky to still have a job.
Remember to go into negotiations with a list of things you have accomplished, how much more you will do the coming year etc. I agree with above posts your need for a new car, etc. Is immaterial to your company.

[jord0205]

thanks for the input! My boss and I are re-evaluating my workload (to give me more), which will also make me more valuable to the company. Eventually I'll get to where I want to be.

[ADLEE]

My company is the opposite of most in that they do not base your pay raise on your performance. In fact, they keep the performance evaluation and annual increases separated by six months. The boss believes the annual bonuses are to reflect the work each of us has done over the year, and the raise is just a cost of living. Our raises this year averaged from 0-3%. This is unfortunate as the gas prices has made my cost of living go up that much, not to mention food prices, but such is the world we live in.

My secret philosophy, which is also shared by my boss, is the best way to get a really good pay increase is to get a new job.

[sabrinafaire]

I'm currently between jobs but at my last company (I was there 10 years) raises were NOT guaranteed, and there were many years that 4% would have seemed a HIGH raise. There was no such thing as cost of living, which means that after 10 years, I was not ahead of the game. So really, it could go either way.

[Caffeina]

Oh lordy, there is no one answer to that question. I work for a huge place, but my raises over the last 8 years have averaged 1.5% per year. Absolutely nothing about increases is guaranteed or written in stone. The payoff is supposedly the retirement benefits and since that's important to me right now, that's what wins.

See if you can get an idea from someone in a similar job to yours what the 'average' has been, and what it takes to get an average raise or better.

[ADLEE]

I have to add that we do receive a nice bonus around Christmas time... which is equivalent to a raise, but all at once.