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How have you dealt with a good performance review and crummy raise?
2

How have you dealt with a good performance review and crummy raise?

How have you dealt with a good performance review and crummy raise?

(OP)
I had what I consider one of my best reviews ever. I've gone out on a limb and done extra projects, became more valuable to the department and I received the second to lowest percentage pay increase I've ever had. It's seriously demoralizing to me. I find that I don't want to try very hard anymore because I can't break out of getting just an average raise.

RE: How have you dealt with a good performance review and crummy raise?

Agree that it's frustrating.

I'd check with the industry standards out there about appropriate pay levels for engineers with your experience and education.  Then approach your supervisor with your data and at the least communicate to them your dissatisfaction.

It may also be that you have gotten very large percent increases in the past and they feel you are already at an appropriate level.  As you get older and more experienced, the early raises in the first severaly years usually aren't warranted later on.

RE: How have you dealt with a good performance review and crummy raise?

(OP)
I'm below. My average raise over 6 years of employment has been 5.4%.

I certainly expressed my dissatisfaction.

RE: How have you dealt with a good performance review and crummy raise?

A couple things to consider:
(1) payraises aren't always based on merit.  It's based on a combination of merit increases, company performance, and annual inflation rate-define cost of living increases.  If the company is doing poorly, there isn't money projected in next year's budget sufficient to cover large pay raises.  If inflation is low, then the cost-of-living adjustment that is a component of your raise will be less.
(2) It is the way of the world for the rate of change of engineering salaries to flatten out after a certain number of years.  That's why there aren't a lot of fabulously rich engineers out there.

TygerDawg

RE: How have you dealt with a good performance review and crummy raise?

A merit pay award has very little to do with merit. If there is a pot of money then it'll be biased to the blue eyed boys (or girls) or the younger (to stop them from leaving). I've done surveys before between appraisal ratings and final pay award. There was little correlation. For a pay for performance scheme to work properly you'd need a management to have the omniscience of guardian angels, and lets face it they're no angels.   

corus

RE: How have you dealt with a good performance review and crummy raise?

5.4% annual raise is above average.  Current inflation rate is about 2% which means you have increased much faster than inflation. However, if you have also been given increased responsabilities you should be promoted with a corresponding large increase in pay.

RE: How have you dealt with a good performance review and crummy raise?

Nodiggity,
Except for the part about the last 6 years you were averaging 5.4% I would have thought you were working aerospace.

RE: How have you dealt with a good performance review and crummy raise?

A 5.4% average is the stuff of dreams, at least in the UK Automotive industry. Keep your job and you are doing well.

I would recommend that you go down the route of not trying very hard as you suggest that way you will not have to worry about the size of your increase next year and whoever the company employ instead of you, will I am sure be happy.

RE: How have you dealt with a good performance review and crummy raise?

5.4% is not bad. Really, if you want a better pay increase fast, you really have to company hop.  My guess is, your starting salary wasn't very good that is why you are not satisfied with your raise.  If you work for a big corporation, if you are getting 5.4%, someone else is getting only 2.6%.  They probably want to give out raises average around 4-5% a year.  Not sure if you work for a big corporation or not.

RE: How have you dealt with a good performance review and crummy raise?

5.4% is something I would love to get.  last couple of years have been 1.5%, not even keeping up with cost of living.  The only saving grace has been incentive bonus of ~ 10%.

RE: How have you dealt with a good performance review and crummy raise?

My best pay-raise ever (9.5%) came after the worst review I've ever had. My best two reviews came with statements that corporate had pay-raise freezes in effect.

As Scott Adams states in Dilbert - "I've lost that subtle connection between my performance and my pay."

RE: How have you dealt with a good performance review and crummy raise?

When it comes to raises, they are usually budgeted long before anyone is evaluated.  You get what you get, and that's that.

There is no connection between performance and pay increase.  Don't waste energy trying to make one.

RE: How have you dealt with a good performance review and crummy raise?

When I had my 2nd performance review (18 months deep in my career), my boss told me he was going to "try" to get me a good raise along with a promotion.  I got 4.5% after that review, but no promotion.  Our annual raises are part COLA and part performance based.  My boss told me he did everything he could to get me something like 8%, but the upper mgt. simply wouldn't let it fly.

6 months later and after I had a large successful project under construction with no hang ups, I got the promotion and another 4%.





RE: How have you dealt with a good performance review and crummy raise?

I went though something just like that.  My company decided on a new review process where each individual would be given a grade based on their performance.  Their grade would then determine their percentage increase.  Well I got an A- on my review and was expecting a nice raise, instead I got under the cost of living after waiting 1 1/2 years (yeah the review and raise were 6 months late...) for a raise.  It was this that was my last straw with the company and made my decision to move on extremely easy.

RE: How have you dealt with a good performance review and crummy raise?

It is pretty funny when they do that sort of thing. You've got to wonder if any of the PHBs in HR ever think any of this stuff through.

Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

RE: How have you dealt with a good performance review and crummy raise?

I've never noticed any correlation between appraisals and pay rises.  After the first dozen or so, appraisals kind of lose their interest - a bit like spending a couple of hours in the pub with your boss, only there's no beer.

RE: How have you dealt with a good performance review and crummy raise?

To answer the OP.....BADLY

Happened to me once (the standard excuse for not giving pay rises in Ireland at the time was a slow down in the global markets). I sulked for a while, got over it and continued to perform my duties. A few weeks later when all had settled down, I got laid off (see previous excuse)

There was something about alarm bells, but sometimes you need to be hit by the train head-on to get the hint.

Kevin Hammond

Mechanical Design Engineer
Derbyshire, UK
 

RE: How have you dealt with a good performance review and crummy raise?

Nodiggity,

Sorry, I'm not trying say that your company is on the verge of collapse or anything. That was just my experience. And again sorry for the whinging.

Kevin Hammond

Mechanical Design Engineer
Derbyshire, UK
 

RE: How have you dealt with a good performance review and crummy raise?

As a junior engineer in times of high raises (and high inflation) I set myself some firm limits.  Less than 10% and I'd announce that I was looking for a new job.  Less than 5% and I'd quit on the spot.  My telepathic boss handed me my letter with 10.1% on it.

RE: How have you dealt with a good performance review and crummy raise?

as others have stated, a good review doesn't always mean a good raise. A couple of things to look at from the company's point of view:
1. Is your pay average or above average for the your job classifcation? If so then don't expect a big raise. Remeber most everyone else the super. is reviewing is doing a good job and wants a big raise. Remeber the bell curve.
2. Many company's give the average 3% raise which is why it is very profitable to move around. No idea why companies do this.
3. A good company will give you a 3% raise for a few years and then give you a promotion with 5 - 10% more to keep you ahead of inflation and in-line with peers

RE: How have you dealt with a good performance review and crummy raise?

As one of my colleagues said years ago: "I liked the size of my slice.  Shame the pie wasn't bigger."

RE: How have you dealt with a good performance review and crummy raise?

If you think you can do better, look around. Engineers are in demand now.

RE: How have you dealt with a good performance review and crummy raise?

I agree with DRC1.

If you can get the same job (relative to what you consider the same job), with more pay, then I would suggest you take it.

So, can you get another job same as your current one with better pay?

"Do not worry about your problems with mathematics, I assure you mine are far greater."   
Albert Einstein
Have you read FAQ731-376 to make the best use of Eng-Tips Forums?

RE: How have you dealt with a good performance review and crummy raise?

Engineering (non-manager) offers a respectible and moderate lifestyle.
Most engineers (non-manager) will not reap the financial success as some other industries.  Apparently, you are near or have reached the monetary plateau that your company and/or industries considers your worth.
I believe that this is more common than not.
There will always be exceptions  

RE: How have you dealt with a good performance review and crummy raise?

5% was the best I have ever gotten (without switching jobs that is or promotion).  And that was only because they knew I might be leaving.  I left and got about 17%.  I have always gotten good reviews but never get above 3 to 4%.  As someone mentioned: If you get 5 someone else is getting 2.5.  Doesn't matter if it is merit based or not these days.  Automotive is horrible and I want out.  Have to job hop to get a decent raise these days.  Just had my eval today too.  I dont expect more then 3%.  5 if I am lucky but I doubt it.  averaging 5.4% at the same company is incredible to me :)  Inflation was 3.9 % last year I believe.  My raise will be 3%.  So basically I will be taking a pay cut in April when it goes into affect because the dollar they are paying me with is worth less than last year ;)  

RE: How have you dealt with a good performance review and crummy raise?

Our pay reviews are happening at the moment, ready for annual pay rises in April. Our evaluations take place in May / June. You can bet anything discussed at the performance evaluation is forgotten by the time pay reviews come around!

RE: How have you dealt with a good performance review and crummy raise?

for current and historic cpi and inflation rate, go here.
http://inflationdata.com/inflation/

The site also has a salary inflation calculator so you can see if your salary is keeping up with inflation.

http://inflationdata.com/inflation/Inflation_Rate/FutureSalaryInflationCalculator.asp

note that this site is also useful for doing analysis and budgeting for costs of operation and maintenance on your facilities if you build in a historic or projected inflation rate

RE: How have you dealt with a good performance review and crummy raise?

Nodiggity,
You got a star in lieu of 3%.

RE: How have you dealt with a good performance review and crummy raise?

Lots of talk about bad increases, percentage analysis and looking elsewhere.
What happened to telling the boss what you think of his increase; use the review as ammunition to prove your point.

Complain - Oh how Un-Engineer like, lets analyse it instead.

Remember performance reviews are the creation of HR departments with too much time on their hands finding work for those that dont.

FOETS
Social Drinker with a Golfing Problem

RE: How have you dealt with a good performance review and crummy raise?

in my experience, HR doesn't get too involved with deciding who or how much the raises are.  This comes down from top management.  As indicated in previous posts, there is a budgeting process every year.  There is a budget for the salaries and for the bonus pool.  Once that gets established, management starts to divy up the pie and the recommended numbers start to trickle down to your department head.  He may have some input, but unless it is a small company - very little.  Once the decision is made, all have to live with it unless the complaining starts.  The negotiations can begin, but unless you can make a good case for your raise to be increased - it is too late to change things.  Need to begin the complaining / justification process with your boss early in the year and continue it all year long.  In other words, work hard and continually let your boss know how valuable you are to his success, i.e. that you are helping him make his goals.  

RE: How have you dealt with a good performance review and crummy raise?

Also remember, if you are a younger engineer and everyone in the company or department is getting the same percentage raise, then you are falling behind!  The higher paid employees are getting the same percent of a higher amount.  Therefore, you slip farther behind.  Speak up about that.  If you are young, learning, and progressively taking on more responsibility, then you should get a larger percent raise to help narrow the gap as you become more valuable to the company.  If not, move on.  Been there; done that.

RE: How have you dealt with a good performance review and crummy raise?

All this being said, one has to remember that the corporation's purpose is not to enrich the employees; rather its stockholders or investors.

Therefore they are going to do what you do as a good engineer.  They are going to get the best job for the least cost.  If you are that least cost suppler of the service that they need, then you will get the work.  If not they will hire someone else to replace you at the same or maybe even less than they are paying you.

If you really want to make more, you are going to have to get promoted or move on-probably the latter.

rmw

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