Appraisal time (salary negotiation)

Appraisal time (salary negotiation)

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Vyse

Original Poster:

1,224 posts

124 months

Friday 12th December 2014
quotequote all
So a bit of background on my job. Ive had the job for a couple of years now and have actually enjoyed my time there. Appraisals are coming up soon which coincide with the company getting an injection of investment funds. Company wise, I'd say we actually had a good year.

Originally when I was accepted for the job I was placed on a a noobie salary. This was fine at the time as I was fresh out of uni. After doing some research the industry average for my position is around £25,000. I am currently on two thirds of that. I guess if I were to rate myself out of 10 over the 24 months I probably give myself a 7.5-8 score.

I am kind of unsure about whether I should be asking for a review of my salary. Probably because Ive never had to do one before. Although I do think it would be a good opportunity too ask for one seeing as the appraisals are nearing.

Could you guys please give me some advice, if you were in my position what would you be doing etc?

Many thanks

STW2010

5,732 posts

162 months

Saturday 13th December 2014
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I ended up taking on more and more, until each time (I've been promoted twice now) I decide to have a frank conversation with my line manager. We are on set pay scales though, so probably a bit easier.

Depends on the relationship with your manager. If your line manager has no powers over this then you will need a different plan. Essentially I would approach the subject like this-

"I have enjoyed the last year and feel that I have learned new skills and demonstrated that I am willing to take on more responsibilities where required. However I don't feel that my salary reflects the skills and experience, so I would like to request that my salary is reviewed."

You might either be asked to justify yourself a bit, or simply be told no. Another outcome will be that the manager says "we'll consider this and get back to you", and then never gets back to you....

See here- http://www.businessballs.com/payrise.htm

vescaegg

25,543 posts

167 months

Saturday 13th December 2014
quotequote all
STW2010 said:
"I have enjoyed the last year and feel that I have learned new skills and demonstrated that I am willing to take on more responsibilities where required. However I don't feel that my salary reflects the skills and experience, so I would like to request that my salary is reviewed"
No one in real life talks like this hehe

OP as part of your appraisal just say you want a salary review. If they say yes, then all good, if they ask why then crack out the facts and figures for your role in the industry. They will either give you one or not but if you feel you are worth more be prepared to walk away and go somewhere else.

I did the same recently, got offered a couple of grand after asking for 5k. Wasn't happy so got a new job and was offered 10k to stay. I left.

They will only give you money if they absolutely have to.

Edited by vescaegg on Saturday 13th December 09:17

STW2010

5,732 posts

162 months

Saturday 13th December 2014
quotequote all
vescaegg said:
No one in real life talks like this hehe
That was how I secured both of my promotions

Vyse

Original Poster:

1,224 posts

124 months

Saturday 13th December 2014
quotequote all
You rejected 10K, how much more did your new job offer? eek

My company is fairly small so doesn't have many managerial levels. But being a small company means they cant pay mega wages. To be honest I don't even know how much more to ask for. Even if I ask for another 4K, that's a 25% increase on what I am currently earning. But its still 5K away from the average.

vescaegg said:
No one in real life talks like this hehe

OP as part of your appraisal just say you want a salary review. If they say yes, then all good, if they ask why then crack out the facts and figures for your role in the industry. They will either give you one or not but if you feel you are worth more be prepared to walk away and go somewhere else.

I did the same recently, got offered a couple of grand after asking for 5k. Wasn't happy so got a new job and was offered 10k to stay. I left.

They will only give you money if they absolutely have to.

Edited by vescaegg on Saturday 13th December 09:17

rog007

5,759 posts

224 months

Saturday 13th December 2014
quotequote all
You're worth what someone else thinks you're worth to them and their organisation. If you think they've got it wrong, then ask as you're intending to do. If they think you're wrong, you either walk as said earlier or stay and get on with it. Good luck!

jfbrin

415 posts

172 months

Saturday 13th December 2014
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The fact is that your employer will always try to pay the minimum it can.
If you want to discover your true value to your employer, you have to resign. This forces them to think hard about either keeping you or replacing you. If they decide the actually need you, they would typically aim to match whatever offer you secured elsewhere. However, don't bluff them. Make sure you have a genuine offer from another potential employer in case you are not as needed by your existing employers as you might think.

Podie

46,630 posts

275 months

Saturday 13th December 2014
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If appraisals are due, how have you performed against your objectives?

Vyse

Original Poster:

1,224 posts

124 months

Saturday 13th December 2014
quotequote all
The tasks Ive been given have mostly been completed on time and to a decent level. In terms of objectives I wasn't really set any from the appraisal I had last year. I am involved in a few projects and just get on with it. However, I've undertaken a few tasks (a bit more responsibility) this year that weren't mentioned in my contract from when I started the job.

Podie said:
If appraisals are due, how have you performed against your objectives?

Gaspode

4,167 posts

196 months

Saturday 13th December 2014
quotequote all
The hard fact of the matter is that it doesn't matter how well you do your job unless you can demonstrate that you add more value to the bottom line if they give you a pay rise. At they moment they pay you X and make Y profit each year. If you want them to pay you X+Z then you're going to have to be able to show how their profits will rise to at least Y+Z, otherwise there's no benefit for them - or convince them that if you leave their profits will fall to more than Y-Z of course..

Often the easiest way to get a bigger income is to change jobs. The company doing the recruiting is suffering (otherwise they wouldn't be recruiting) so it's a much easier sell to convince them you can ease their pain for only 2X pounds per year.

But it never hurts to ask...

Pit Pony

8,554 posts

121 months

Saturday 13th December 2014
quotequote all
Vyse said:
Ive had the job for a couple of years now

This was fine at the time as I was fresh out of uni.

After doing some research the industry average for my position is around £25,000. I am currently on two thirds of that.

Many thanks
So you reckon that the going rate for a Graduate, 2 years out of university is £25K ? And they are paying you less.

I don't know the industry, but £25K sounds st given the investment in education you made.

You have 2 options.

a) Get ready to leave.
b) Shut up and put up.

In my experience, I have witnessed numerous people, ask for more, be told some excuse, be given some carrot, and then eventually they apply for and get a better offer.

What I'm saying is get yourself in a position where you CV is out there and you've had a few interviews and maybe had an offer or 2, then tell them you WANT and are WORTH £25K, and if you don't get it you will be looking to move on.

Podie

46,630 posts

275 months

Saturday 13th December 2014
quotequote all
He's not on £25k, he's on "two thirds" of that!

As with the above, you need to show you are worth the increase. As a grad, you should know that this stuff is all evidence based.

If someone comes to me asking for more money, they need to prove their worth it. Set realistic objectives (Google "SMART objectives") and meet or exceed them - and show they have done so.

Bedford Rascal

29,469 posts

244 months

Saturday 13th December 2014
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How much money do you make for your firm? How much will they lose if you go? Can they replace you for your salary if you do leave?

vescaegg

25,543 posts

167 months

Sunday 14th December 2014
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Bedford Rascal said:
How much money do you make for your firm? How much will they lose if you go? Can they replace you for your salary if you do leave?
Exactly. I was only offered the 10k increase because my MD knew it would cost a whole lot more to replace someone at my level.y new job was miles better but I would have left even if they offered me 20k to stay just on principle because only 3 weeks prior they wouldn't give me 5k and I was annoyed.

OP see how an initial discussion goes. If you are not happy start looking elsewhere. Get an offer and hand in your notice. I'd always say that once you are at that stage then go through with leaving even if they offer you a lot to stay; if you effectively blackmail them into giving you more because you are leaving they may try to screw you over later... Perhaps I'm paranoid but I've heard of it happening.

At the end of the say two thirds of 25k for a university educated person with a couple of years experience is ridiculously st.

STW2010

5,732 posts

162 months

Sunday 14th December 2014
quotequote all
vescaegg said:
I'd always say that once you are at that stage then go through with leaving even if they offer you a lot to stay; if you effectively blackmail them into giving you more because you are leaving they may try to screw you over later... Perhaps I'm paranoid but I've heard of it happening.
I agree with this. You'll always be remembered as the guy that tried to leave.

vescaegg said:
At the end of the say two thirds of 25k for a university educated person with a couple of years experience is ridiculously st.
Again, very much agree with this.

Vyse

Original Poster:

1,224 posts

124 months

Sunday 14th December 2014
quotequote all
I am not going to be able to get a job offer from another place within the next few days. There isn't enough time. Didn't even know we were going to have appraisals until a few days ago.

Am probably not going to ask for a salary review now. Instead look for an offer from a company that I may want to work for and see if my company will match or at least improve what I currently am on now. If not I'll leave.

I was kind of in two minds about the salary review as it may give me a bad image.

edit: Last year when the appraisals came around I was given a 3% increase. I remember one of the lines my manager said was along the lines of, "if you think you deserve more we can have a chat". If my manager says this again this year should I bite?

Edited by Vyse on Sunday 14th December 12:25

Gaspode

4,167 posts

196 months

Sunday 14th December 2014
quotequote all
Vyse said:
I am not going to be able to get a job offer from another place within the next few days. There isn't enough time. Didn't even know we were going to have appraisals until a few days ago.

Am probably not going to ask for a salary review now. Instead look for an offer from a company that I may want to work for and see if my company will match or at least improve what I currently am on now. If not I'll leave.

I was kind of in two minds about the salary review as it may give me a bad image.
It would only give you a bad image if your reputation in the company is already not brilliant. If they think you are good, then they'll be expecting you to ask for a review, it's a sign of ambition.

Animal

5,247 posts

268 months

Sunday 14th December 2014
quotequote all
Vyse said:
Last year when the appraisals came around I was given a 3% increase. I remember one of the lines my manager said was along the lines of, "if you think you deserve more we can have a chat". If my manager says this again this year should I bite?
Depends on whether you want a pay rise or not!

I asked my boss for a pay rise at the end of last month and he said he'd think about it and get back to me. A fortnight later we're sat in his office talking about the year ahead, our growth plans and budgets etc. I left half an hour later with a clear view of what we're going to be doing in the year ahead and a great pay rise.

If you don't ask you don't get, but be prepared for rejection and counter-arguments. Are you really worth it? You might be the hardest trier in the company but are you the top performer? What do you cost your company (salary, pension, NI, IT costs, etc, etc)? What do you produce for the company? It's one thing to ask for a pay rise because you really, really want one but it's quite another to actually deserve it.

Rehearse the conversation in your head and be very harsh with yourself!

STW2010

5,732 posts

162 months

Sunday 14th December 2014
quotequote all
Vyse said:
Last year when the appraisals came around I was given a 3% increase. I remember one of the lines my manager said was along the lines of, "if you think you deserve more we can have a chat". If my manager says this again this year should I bite?
How did you respond to this?

Sorry to be blunt but you need to stop being timid about this. The company will not pay you loads of money out of the goodness of their hearts. YOU need to take the control here and be a bit more demanding.

thenorth

57 posts

160 months

Sunday 14th December 2014
quotequote all
Let me translate your managers quote for you, he is saying... You are valued we want to keep you sweet, if you feel underpaid talk to me about it, don't look for anything else.

His first question in the appraisal will likely be, how do you think you have preformed this year?
Have bullet points ready to reply to his question

examples of what you could to say...

Explain how you have improved in since starting at the company. Have you taken on more responsibility / improved / supported the department / trained a new starter etc say you I have enjoyed having the opportunity to take on more responsibility / improve your skills and i would like to continue with this progress. Then you mention you feel underpaid as your salary does not match the going market rate for your position.

Then sit and wait for a response don't squirm be confident and don't speak until he does.

if you get the answer / number you are looking for then great.
If you don't, ask for some goals to aim for to enable you to hit the salary you are looking for.



Edited by thenorth on Sunday 14th December 14:49