How much pay rise should I ask for?

So the company I work for is doing really well…
Sales up approx 40% on last year. Small privately owned and run software company, found it’s own niche. No massive material or manufacturing expenses in last few years,only a slight increase in workforce but not likely to damage the profits by too much.

Company has been growing steadily over the last ten years so I doubt there’s any significant startup costs to re-coup.

I’m certainly paid well below market rates and I suspect the other employees are as well. I’m also getting involved in some pre-sales stuff which (a) I was never hired to do and (b) is not my area of expertise and (c) found the sales team are bullshltters of the highest order and I’m not comfortable with some of the claims they are making.

The company president and directors are probably raking it in.

Wanted: tatics to ensure I get my fair share of the rewards!

As a bit of background, I joined the company 4 years ago but at the time was not in a strong bargaining position so took a crap salary (and even more crap holidays) as I needed the job. I also come from a unionized background where pay raises where fought for negotiated by the union so this was my first experience of negotiating my own salary. And my manager is a shark who gave me the minimum he could get away with! I also live in a city which was recently voted 3rd worst in terms of affordability (in ratio of average salary to housing costs)

I wouldn’t do the same in your position. I would just be thankful for having a job and the opportunity to at least ride the storm for the foreseeable future.

you could ask for a small rise but personally as Chunkymtb says

that said i would ask for additional holidays on the basis that it probably wont cost the company anything (assuming that they won’t need to take a temp on while you are away?)

Try negotiating based on your value to them and what you have brought to the job. Also get hunting for a new job, holding a job offer will be helpful in negotiating your worth as you have the ability to walk.
Good luck

4% increase I would say

Their profits have risen by 40 % and you lot would be thankfuil for them employing you even when they are making tons of money…no wonder bosses get away with it

Consider your worth to them which has a number of factors
1. How much do you contribute to the profits?
2. How much does it cost to replace you- money in recruitment cost lost productivity /training etc we reckon on a minimum of 33% of salary on this
3. How easy will it be to replace you? time , money , hassle
4. Can they replace you with someone cheaper?
5. Do they want to keep you or tell you to eff off.

I would explain it as you have and say you will need to leave the area if you cannot get a salary that means you can afford to live here.
Say you have done your stint and it is time for the rewards , how you have taken on extra responsibilty to show commitment noew they need to show their commitment in pounds

Ask for 6% and a couple of extra days a year holiday. Expain that you are now taking on other duties, been very good at the role etc.

Don’t say anything about looking for another job or having another job offer its a tactic that frequently backfires. But it may be the time to start looking elsewhere anyhow, but if you are going down that path just do it don’t try it on as a bargaining chip.

Their profits have risen by 40 %

Thats sales… not profits.

Be thankful you have a job mate. I’d be tempted to stick this year out and see how the land lies next year.

This year is going to be really tough.

Sales up approx 40% on last year.

…does not equal profits up 40%.

How much of those increased sales will go on paying old debts, overdrafts, future infrastructure improvements, increased heating/lighting bills, and every other bill that comes through the door etc., etc.?

How long will your companies niche last? Will it need money in the bank to ride out a dip in the future?

Certainly ask for a modest payrise if you’ve not had one for a while, but I wouldn’t be threatening to walk out (unless you’re certain of another job).

Ask for a payrise, worst he can say is no. Highlight the reasons why you deserve one. I think a 3.5% rise is common, what i got, but i am looking for other jobs as i can get paid much more elsewhere.

echo the sentiments above.

on the basis that if you dont ask you dont get, ask for a modest payrise (2-3%) but also an increase in holiday, perhaps an extra 2 or 3 days?

unless you know your onions i wouldnt set about telling your boss or the owners about sales/turnover etc
currently they are sitting pretty knowing that they can replace you cheaply, easily and if you are gonna be a pain in the arse thats what they will do.

or

barge into the office, demand a 40% payrise or your gonna walk.
let us know how that pans out eh?

1. Research the market rate for your job – find some examples locally(ish) that are similar to use as evidence and to back up what you’re asking for. Market rate is key.
2. Write down the points that help make your case for a payrise and what you’re doing for them
3. Present this in a professional way. Never mention anything personal as a reason to pay you more (eg we’re having a kid, I want more money) as this is irrelevant to your worth to the company. Keep discussions non-personal and as fact based as you can – view it as a business negoiation, not a personal one. You deliver a service to the company, the company pays you what they consider that service is worth.

barge into the office, demand a 40% payrise or your gonna walk.

That can work in the right circumstances 🙂

lowey – Member

Their profits have risen by 40 %

Thats sales… not profits.

Be thankful you have a job mate. I’d be tempted to stick this year out and see how the land lies next year.

This year is going to be really tough.

Yep, that was my point. Things are going to get a lot worse this year.

Sometimes you have to be patient.

Or you can go down the throw your weight around route and see what happens…

I am with Junkyard on this, do your homework companies house will have a lot of the information you need.

Its only fair your share of the pie reflects your contribution !!!

Too many people think that someone is doing them a favour by giving them a job its a mutually beneficial business relationship. You are selling your time and its supply and demand if there is a plentiful supply of people who can do your job you get paid less than if there is not.

Get a job offer for more. Ask them to beat it. Leave if they don’t.

If you can’t get a job offer for more then relax.

You need to be reviewing your pay with your boss every year at your annual review. I’m not saying a pay rise is apropriate every year but you need to know how you can move up the salary structure based on performance, extra duties, etc. Also start looking at other job options to establish market rates and to get an idea of exit options.

See what they offer at the pay review, if it is pants discuss why the offer is pants, hinting at the fact you are not happy with it. That way they might take the hint. If they don’t look for another job. If you are paid under market then that job should pay more.

When you go to resign they will either offer you more to keep you, or not. If they don’t then leave. If they do you know that you are in a strong position, and can now use the inconvenience of giving up on the other job to ensure they make it worth your while to stay. If you want the new job instead DON’T try to get more out of them, though.

If you are in software then 4 years is easily enough time on your cv not to look bad, in fact longer can look bad to certain employers.

“3.5%”

1.0% here and grateful not have been made redundant. [space system software]

no way would i stick up another year on piss wages even with the recession doesn’t mean people can pay eff all for your efforts.

just go and explain and say you have researched the going rate for your job and see what they say. if they say they cant afford it, then ask for more holidays if they agree then you win either way.

pretty poo company when they offer you nothing in the way of rewards for the year especially with sales on the up…..

dont think anyone should stick on frozen wages especially with the rising food, fuel, electric

!!!

without you and your colleagues they wouldn’t have a company! unless the had other people happy to take bugger all for a job where its demanding!

paid well below market rates

I guess this is only relevant if there are any jobs on the market.

Get the accurate figures on how the company is doing – talk to the financial bods and see what they posted to Companies House as profit in their last financial year. Scour jobs sites for similar jobs to your own and print out the ones where the salary range is better.

Then approach your manager with a proposal to recognise the responsibility and extra work you’ve already been putting in that’s outside your remit. State that you’re also exceeding expectation in your role as it’s defined. Show him the evidence that other roles elsewhere are better paid but don’t threaten to leave. Ask for a new job description and with a salary commensurate (I love that word) with your expanded role.

Aim for the rate of inflation (4% ish) plus 2 or 3% on top. If they only agree to the 4%, say that they’re only offering a cost of living increase. Use what you know of their financial situation to counter any argument that times are tight, if that’s not the case.

Finally, when you’re happy with the numbers, say “Backdated to when?” and see what it brings.

Good luck!

What’s all this doffing your cap to the man stuff ?

Jeez! If you don’t ask, you don’t get.

found the sales team are bullshltters of the highest order

And increased sales by 40%, which you now want a bit of.

Don’t knock them.

Don’t knock them

increased sales of the back of good product…

I’d consider asking for a bigger bonus, based on company performance. Rather than a big pay rise.

Clubbers advice is also good.

And be careful as mentioned above 40% sales growth doesn’t mean 40% increase in profits. Have they been hiring a lot of new staff to meet demand? This can eat into profit.

I’d look to get some kind of bonus structure in place – if you’re performing well and the company is thus making them more money, then they should be happy to pay you more. The challenge is making that bonus scheme work for everyone concerned but it’s a much more obviously win-win thing to present to your boss.

Just be honest with your line manager and have an open discussion. Going in with “evidence” of financial reports, other local jobs etc will only get you manager’s back up and you’ll be labelled as a trouble maker. By all means do your research and put your point accross but keep the conversation at a level that is non-aggressive. If your manager thinks you’re worth it he’ll fight to keep you happy. If not, you know your worth to the company and you can quietly start looking for a new job. Agree with all the other comments about showing how you’ve contributed more and taken on more responsability. Be enthusiastic about working hard and making the company more profitable. Also, increase of 40% does not mean that the business is healthy, there could be other considerations that you are not privy too.

All the best.