Expected Salary Increase? 3

[cfj104]

I was wondering if anyone out there can lend me a little advice. I was recently promoted to a level 2 engineer but I feel the raise was less then deserved. I have been with my company for 2 years now and when I got my promotion, I was told that the raise also included my merit raise.

Long story short, I ended up with a total 9% raise. My merit raise last year was 2% - is this inline with the current trends?

I have talked with people from other companies (also other fields) and they typically receive a 10% raise for a promotion.

Any adivce is greatly appreciated!

 

[swertel]

My typical grade level promotion raise is 8-9% plus annual COL + merit raise.

Seems like you're right in the ballpark. Every industry is different.

--Scott

http://wertel.eng.pro

 

[Lion06]

swertel-
You get a COL increase AND a merit increase?
Is that correct?

 

[swertel]

I get one increase that is called COL+Merit, during my annual review. The minimum percentage is based on the COL increase. Anything above and beyond that, based on my performance, is merit.

COL is typically around 2%, merit is typically around 2%. I can budget on getting about a 4% raise per year.

COL has been as low as 1%, and merit can be as high as 4%. Maximum total raise can't exceed 5.5% - which no one ever gets anyway.

--Scott

http://wertel.eng.pro

 

[IRstuff]

So, we're concerned about a $600 or so delta?

Is that enough of an incentive for you to change jobs?

TTFN

 

[winpop123]

In my experience a typical annual raise, whatever you call it is somewhere between 3 to 5%. Thats why you rarely get ahead sticking with the same company because you are only really getting a raise to offset inflation.
For a promotion its somewhere between 5 - 10%.

So if you got 9% percent then thats about average.

Congratulations on your promotion.

 

[ctopher]

9% raise is common here in the USA (for promotion). It is actually better than a lot of companies.

Chris
SolidWorks 06 5.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 02-10-07)

 

[KENAT]

9% is pretty good. I wouldn't quibble between 9% or 10% though. Both are higher than many people see without changing companies.

That said I got about 19% raise at around 21 months but I'd gone from being a new graduate to being project manager for a major program. Plus the guy that hired me left around the same time and I think they half expected me to follow which in a department of less than 10 at the time would have been a big hit.

The raise I'd had about 6 months before when I was allowed to drop the 'Junior' from my title was around 6%.

This year at my current place I'll be lucky to get a raise (I don't think they have separate COLA & Merit) that even matches inflation, let alone anywhere near 10%.

 

[kchayfie]

For me, annual increase is between 2 & 3.5%. Promotion from assistant engineer to engineer was 7%.

9% seems OK to me.

 

[dcasto]

When you get into people management and see the rules handed down from above, you'll be amazed at how it all works. Budgets for this, for that, they even budget the number of people who can get a promotion in the whole company. Your boss and even some Vice Presidents don't have any say in the amount, its all preprogramed, thats why everyone is saying you are in the ballpark.

 

[IRstuff]

Not only that, but the HR people meet each year to fix the annual increases, so that people won't get enticed to jump ship because one company is offering better annual increases.

THAT's why the increases are all so similar.

TTFN

 

[Heckler]

You can please some of the people some of the time, but you can't please all of the people all of the time -- Abraham Lincoln

Best Regards,

Heckler
Sr. Mechanical Engineer
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(In reference to David Beckham) "He can't kick with his left foot, he can't tackle, he can't head the ball and he doesn't score many goals. Apart from that, he'

 

[mshimko]

And the ultimate bottom line is this: eventually you (and your company) run the risk of losing out on contracts due to costs. If/when that happens, your big pay raise last year may not seem that great.

Fact is, there are always opposing considerations:
- bid low and run a low or negative profit
- bid high and risk not getting the work
- offer small salary increases and risk losing good employees,
- offer high salary increases and risk not getting new work and have to lay off good employees.

 

[Maui]

In my last job I went three straight years with no pay increase of any kind. During one of those three years I survived three rounds of management layoffs. I was also forced to work as a replacement employee in at least one union strike. It wasn't pretty. After we worked our way out of that rut, I was promoted to a new position, but with no raise. Just more responsibility. I went to my VP and stated my case. The company had returned to profitability, my previous projects had been resounding successes, and since I was accepting more responsibility, I expected to be compensated accordingly. After three weeks of "reflecting on this", he told me that I didn't deserve another dime. I was angry, and so I responded to a headhunter that contacted me on that same day. I'm glad that I did, because I eventually accepted the position that he described. It was a major step up in terms of position, title, pay, and job quality. My base pay increased dramatically. And the first thing that my new boss said to me as he handed me the written offer was, "[Your company] is grossly underpaying you."

Maui

 

[atlas06]

IRstuff,
Is that legal for HR's to have a roundtable? is that what they call it? a roundtable?
That's price fixing in my book.

 

[michfan]

You are only worth what someone will pay for you. Basic lesson of the retail world.

Is a shirt from Abercrombie worth more than one from Kmart? Not if the one from Kmart fits me better and is just as well made.

Will I pay more for the Abercrombie shirt if I can get the Kmart one for less? Probably not (unless I'm under 18, which I'm not...)

Will your boss pay you more if he knows you'll stay at what he's paying you? Nope... I've surprised a couple of bosses in my life who thought I wouldn't quit and move to something better. Their response, in both cases was, "you were due for a raise soon..."

 

[josephv]

Hello,

Good day, here is an article I just read:

http://biz.yahoo.com/weekend/lemon_1.html

It's a bit too optimistic, but I like the advice:

"Why don't you ask the boss exactly what you need to accomplish here to get that promotion and then establish a schedule to do those things?"

cheers,

 

[KENAT]

That works fine until other factors in the organization change and though you've met your bosses wish list he can't get you a pay rise.

While negotiations this year are only just starting I'm pretty sure I'm going to fall into that very category.

 

[josephv]

Good point Kenat, there are many factors to consider.

 

[bvanhiel]

That works fine until other factors in the organization change and though you've met your bosses wish list he can't get you a pay rise.

But then at least your boss knows that you're itching for a raise. Like michfan, who's surprised two former bosses, most engineers don't give much indication that they're upset and ready to leave.

Lets face it. Most engineering managers were once engineers. You can't expect them to pick up on subtle social cues. You need to find a non-confrontational way to say "Give me more money!" Finding ways to improve your value to the company is something that a manager will have a hard time arguing with.

-b