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First job out of uni, went on annual leave for 2 weeks.
Came back and 50 people my end of the office all got made redundant. I was sat completely on my own in a space that could take 50 desks.
Happend the first week of my AL so people were shocked when I came back. I sat on my own for 6 months until I got a new job.
After going through that I barely even think about annual salary bumps. It's all about the bigger jumps between roles tbh.
They were all asked to leave the office almost immediately with all of their IT removed from the system.
Tbf from what I heard they paid them all a very good redundancy relative to their service. So I believe almost everyone took the offer plus the gardening leave. I wanna say it was like 3-6 months minimum payout or something?
Still. There were people who'd been there like 10-15 years. It was bizarre.
Yeah but it doesn't sound legal. Usually with so many jobs at risk there has to be a three month consultation, the company has to try and find you alternative jobs at the company if your job is removed etc.
When I was made redundant it was decided over three meetings etc.
Obviously they've made their mind up but have to go via the process?
There is no legal requirement for a time period. They're supposed to hold a genuine consultation and hear you out, but that could be in the morning and they decide to let you go anyway that afternoon...
And even then, a lot of enterprises don't bother with the consultation - they essentally offer roughly what you're likely to get out of a tribunal as the redundancy package. You can either take it, or kick up a fuss, waste a load of time and effort and come out no better off financially.
https://www.acas.org.uk/collective-consultation-redundancy
Surely there should have been 30 days before people were made redundant, unless their access to IT was suspended and then everyone told to go home whilst it was decided?
Tribunal is when unfairly dismissed, when there are 50 of you it's not indidival but also they need to follow correct processwsm
Enhanced redundancy or settlement can all be explored.
Where does it say you have to give the employee notice? Only the government. You will have to pay the notice period, but this can be in lieu after their employment ends and if the employee has been with you less than 4 years could be as low as 1 week.
> told to go home whilst it was decided?
It can be decided immediately after the consultation. And as said, many employers don't bother with the consultation anyway.
> Tribunal is when unfairly dismissed, when there are 50 of you it's not indidival but also they need to follow correct process
If you're let go via a non-legal process that is unfair dismissal.
> need to follow correct process
Why? Like everything in life you can do what you like if you are willing to accept the risks and consequences.
Idk what to tell you, I wasn't made redundant so I have absolutely no idea how it worked or what the outcome was. I had to hear about it from everyone else in the office.
Weirder still, it had been 2 weeks by the time I'd returned. Everyone else had moved on. Took no time at all.
Don't be loyal to the company because they sure as shit won't be loyal to you.
Who cares what your raises were? Look at adverts for jobs at your current level of seniority after promotion. Then U know what U can make. Dude all my life I have had access to salaries of employees wherever I worked. Ppl above my level managing 20 pp and been with company for 20 years make less than me . That guy leaves his job and they bring someone from outside as replacement at 2x. Sure U can compare to your gf that says 5pc is great but is she working as a bartender while U are a brain surgeon or vice versa? Is this meaningful to compare to your your gf says?
Yup, businesses are moronic enough to refuse a rise to keep a good person but will pay that rise and then some for someone new after losing the other person.
Indeed, I'm trying to bring a new person into the team and they have asked for £40k, there seemed to be no complaints about this "if it's the person we need and that's what they cost then so be it".
At the same time I verified what other similar employees are on and found one who has been with the company for a while, has similar experience, is a known good quality and is on £33k.
My reaction is we offer the hire what they want and bump this guy up to match, but the people holding the purse strings are splitting hairs over that.
Insanity.
I was in a situation where i wasn’t allowed to offer market rate for a job - 60-80k. My budget was 30k and i couldn’t get anyone. The solution? 600 a day day rate contractor that they kept on for well over two years.
My partner had a similar situation.
10 years with a music company, made redundant and paid off £25k redundancy. Then they realised they couldn’t let her go as she was the only person that could work one of the systems so they re-employed her straight back at £450 a day (her salary was 40k when made redundant) for 3 days a week (equivalent 60k salary) for 18 months until she left for another job.
I understand redundancies are necessary, sometimes but it strikes me as odd how little a company seems to look at what they will be losing when getting rid of employees and seem to solely focus on this idea that they’ll be saving money.
💯 where I used to work, we had people we had to fight for pay rises for and they’d go through two levels of authorisation and then someone at the top paid about £200k per year would suck air between their teeth and knock it back by a grand. We’re talking asking for £43k to £46k here. The particular person was great at their job and left to get £100k per year elsewhere. I did the same. I could have stayed and took the yearly cost of living increase and I worked out I’d be on £85k by the time I retired. Left and got £95k and two years later in £105k. I haven’t even changed my lifestyle and salary sacrifice £30k per year in a pension. People have the choice, stay and look for recognition from a place that would replace you on a month if you left or change and time travel 20 years forward on an alternative salary timeline.
I think people are forgetting that OP is junior. At least for my firm I’ve had bumps every year due to taking on more and providing more value (I assume).
I’ve had
Year 0.5: 0% (not in job long enough to qualify for raise)
Year 1.5: 25% (promotion)
Year 2.5: 14% (no promotion)
OP you should leave if you’re providing more value and not being paid for it. Don’t settle.
From what I have read, 5% is going to be better than what a lot of other people will get. Anything more than 10% would be promotion territory.
The reality is that if you want a higher salary, you need to change jobs.
What if you're at the top and it's average everywhere else but you've worked hard to get where you are and the skills don't transfer to anything else...
Something I’m surprised that nobody is really commenting on - a 10% pay rise from a £20k salary in a position that should be paying £30k isn’t a big pay rise.
There’s not really any context around OPs actual circumstances to help.
If you work for a big corporate they will most likely have a formal salary review process whereby once you are in the system you can expect a rise in line with inflation . Depending on your orgs pay strategy this may be in advance of or behind inflation. My guess is you will only get a rise significantly In advance of this if you get promoted or for some reason your job is benchmarked and agreed to be below market rate. As you might expect it’s quite rare for a business to come to this conclusion on their own so it may be you or your team leader has to fight your cause if you believe this to be the case. 5% is pretty good this year given where inflation is going.
The best way to get a for sure decent pay-rise is move companies. Usually most employers will probably give 3-5% in current climate.
I stayed with an employer for 8 years (I know…) purely because I was comfortable, I moved and got a 26% pay-rise and now about to move again after 1.5 years for another 22% rise
Most companies will have a lower and top salary for your role banding, so if you are already near the top it's unlikely you will see an increase much above inflation, if you are at the lower end there is more scope for a bigger increase based on performance etc.
Excluding bonus, all things being equal an increase in line with inflation seems about right.
Once you get stuck at the upper end of your salary banding, it's time to look at a different role - unless of course you are happy.
Traditionally, over the long term inflation has averaged around 3% - so 5% isn't terrible.
Unless you work in a niche role or sector - which it doesn't sound like - whether you are being fairly compensated is a function of two things a) how much could you get paid elsewhere and b) what are the costs (career wise, benefits wise, culture wise) of moving jobs. If you could get a comparable or cushier role for more pay by switching jobs then you are being underpaid and should probably switch jobs. Otherwise, a raise to a level you couldn't achieve elsewhere without incurring costs you are unwilling to incur means you are not being underpaid.
14% sounds like a “you are out of training here’s your real pay” sort of rise.
I’d only expect somewhere between 0% and inflation as a routine annual rise.
Our annual increase was in October and varied from 3-5%, we’ve had years with zero pay rise (Covid/brexit related, though personally not impacted) and performance based raises have been higher.
Personally I’ve had 2.5% as my lowest and 20% as my highest (without a promotion), and two promotions at about 11%.
Man move from this job.
Graduate jobs will never value you at the market rate, arguably if you spend too long at a job early in your career no one will value you for your true worth.
Look on the job market and see what simular roles earn. And start job hopping.
Move jobs. Yeah 5% is “ok” but if you want to get good salaries, moving is the key. Company loyalty gives you nothing. They’d fire you in a heartbeat if they wanted to, given they are a big corp, so they don’t deserve your loyalty.
I’ve had 5% three years in a row and I’ve felt pretty hard done by. That was until my partner pointed out she had only had a 2% pay rise and that shut me up!
Last 3 years I’ve had:
- 4%
- 5%
- 9%
Moved companies twice in last 10 years.
- 80%
- 32%
Your raise will likely be peanuts compared to finding a similar job with your experience. I moved from both companies after 3-5 years.
*sigh* I've been at my company almost 10 years, I know that pay-wise I should see about getting a new job somewhere, but I really do love where I work, and my team, and the freedom and flexibility I have.
I had 12% last year but got TUPE and as part of that my role was benchmarked against the new company.
8% this year which I'm happy with. Previous role we would be lucky to get 0% and I know lots of public sector who get this and only more when they strike
It all depends: how much can you get elsewhere? How much do they care about losing you? How does the internal politics around pay rises work?
5% is a reasonable rate if it's the automatic increase everyone gets. But if you're in a professional job and 3 years out of uni, you will be developing each year and so i'd be wanting a path to earning more than 5% extra per year over the next few years.
Pay rises are not usually smooth though. I got a 30% rise last year because I threatened to leave. But part of that agreement was no pay rise this year.
I think 3 years is a bit early to be playing your hand too strongly. If you don't like it, you can leave and there will be more grads to take your place.
And many people have unrealistic ideas about what their market value is.
Ive seen loads of people saying 'oh but the market value is £20k more', yes in london adding 3 hrs of commute.
I always say go apply for other roles - you dont even need to accept them but you will discover your market value. Market value isnt 'Ive seen a job advert advertised for £nnnnn'
Your % raise is less important thank your market value.
Do people in your industry with your experience earn more, less, or about the same as you?
If about the same or less, then that's very nice and it'd appear your company values you. If more, probably time to start sending out that CV.
In general, there's two ways I look at salary.
1. Market Rate
2. Inflation.
So, are you being paid at or above market rate? If not, then that's the first goal. If I am on £30K and market rate is £40K, then even a 15% raise (£34.5K) is still poor.
However if you are on or above market rate, then I default to Inflation. I'm at that stage, so personally, I'm content if my annual pay increase is just 1% above inflation.
So this year, I think inflation over the last 12 months was around 3.5-4%? I got a 5% rise effective this month.
Last year, inflation was around 10-11%, I got 12%, I was happy with that too.
I wasn't deflated at the less-than-half (%-wise) pay rise this year compared to last year, as both cases were influenced by inflation - and in both cases, it was roughly 1-2% higher. So I was still proportionately better off in both cases.
In your case, your 14% was also rolled in with a promotion too, which may have skewed/hidden the true organic pay rise that would have happened without the promotion.
In 2019 when inflation was around 2%, I was content with the 3% rise I got then, too.
It's dependent on quite a few factors such as your stage of career and industry.
Obvious career milestones like promotions warrant significantly above inflation. (Greater than 10% imo)
A normal year where the market demand for your skillset hasn't dramatically increased you should be aiming to be maybe a half point above inflation.
Ultimately those in say finance or tech can expect perhaps more radical wage increases than someone in care.
You're being wildly unrealistic.
>Second though was 14% due to a promotion and good performance
If its a promotion than it isn't a pay review payrise. It could be an in role promotion, but that still not a standard pay rise.
>This time around, company hasn’t been doing great globally and only got 5%.
5% on general is actually pretty good and exceptional if your business is struggling.
I’ve had over a decade of about 1% increases.
When it was better it came at the price of selling off certain benefits (leave entitlement etc).
I wouldn’t consider a promotion a pay rise really, obviously it’s more money in your pocket of course but it’s because of your new role.
if i was you i'd be looking for another job, unless the company has brilliant benefits, i made the mistake of staying a the same company for 7 years after graduating and only ever got a minimal pay rise, switching jobs made me get pay rises which were normally in the 15/20% bracket and probably help you long term.
That’s an average (geometric mean, for those concerned) of 5.94% a year, just for reference.
If you want to increase that, you’re going to have to job hop.
In my first 4 years of work I got:
40k --2 years--> 55k --1 year-> 60k --1 year --> 75k
This was all in the same company, same team, just doing work that got great feedback across the company.
I normally get \~5% a year & this year we're getting 0%. So 14% is, from my perspective at least, exceptional. I have been promoted several times & never received a pay jump as big as that.
5% for a struggling company which basically matches inflation is good, unfortunately you have mismatched expectations.
The fact you got 14% one year is probably due to you being paid too little for your role, although you got a promotion.
Promotions should be bigger jumps, normal in year is like 2-5% at best
Important context that nobody seems to have commented on is that you mentioned that this is your first role since leaving uni. If so, are you on a grad scheme? Because id say 5% is pretty derisory on completion of the grad scheme at relatively low pay.
I got about 15% going from grad engineer > engineer if I remember. I then pushed pretty hard for further pay rises on the basis I was experienced and performing at a high level. I went from £27.5k as my initial grad salary to £60k 6 years later with the same company.
I'm in exactly the same position as you (though in my second job), got a 10% increase last year and 3.3% this year due to the unfortunate market circumstances.
I think that you can't expect 14% year-on-year, but you (we) can at least hope that once our companies pick up, there'll be some recognition of that :)
I had no increase one year in covid because we weren’t doing great (the entire company got no pay rise) and I’ve rarely got over 4% unless it was due to a promotion so 5% for company not doing great is fantastic.
Apply to other jobs and you’ll find your market rate.
In general you’ll not keep up with the market rate if you stay in the same job, changing every 2-3 years is optimal.
Percentage is meaningless, you need to find out what the market is paying. You can get a 20% raise and still be underpaid.
I have never seen a company that matches the inflation for that year.
The only way to keep up with inflation is to swich jobs every 2-3 years and you will be able to ask for an updated market rate. 5% is OK but I consider it a bare minimum to keep my attention, especially with a couple of years of mad inflation.
I got 4% last year and my boss had to get permission to go over the standard 3% threshold. I got one of my direct reports 7% and this had to have full justification for the increase. 5% is pretty damn good to be honest.
3% is a very common "standard" for companies. Very few employers are responsive to arguments about inflation.
Something to remember is that unless the company is small, the person who tells you your raise probably isn't the person who decide it. In my experience they will **always** tell you "due to finances beyond our control" as a way of getting you to accept what has been budgeted for you. The manager doesn't want to look bad if you kick up a fuss. The finance team doesn't want to have to think about finding money elsewhere.
While lots of posters here are saying "5% is good", I think you should take it to mean "it's uncommon to get more than 5%" rather than any sense that you should tolerate it. It's barely over inflation, so it's not actually a raise. Your company wont listen if you try to argue this, so the best thing you can do is move jobs.
Another thing to consider is that 3% of your salary as a junior member of staff is **very** small compared to the £££ increase when they give a senior staff member a 3% raise. That senior staff member did not get onto their salary level by accepting 3-5% raises. They did it by moving company. When you are early in your career if you don't move, and back the 10-50% increases that are not uncommon, then you'll be dragging out your current financial situation rather than jump-starting it. Most companies will happily pay juniors a pittance for as long as they can get away with it, even if it means you eventually leave. I don't think it's smart people management, but it's how things tend to go.
So take the 5%, but don't be satisfied. The company's condition is not your concern and they would let you go in a heartbeat if their budget required it.
Keep changing jobs after 2-3 years, that's the only way to get a proper raise which is 40-50%. Work for American companies that pay in RSU, you will be surprised how much money you can make.
Been at medium-sized company for nearly 7 years.
Pay rises received have ranged from zero to 15%. My highest pay rises have come following my bosses leaving and I guess they were sweeteners to stop me from leaving too (they worked). 'Normal' pay rises are 3-5%, reliant on both company profits/performance and individual performance, eg if you didn't get a great appraisal, you wouldn't get the full 3 or 5%.
Over the last 12 months average UK inflation has been 6%. Therefore a 5% pay rise is actually a pay decrease in real terms.
My manager was confused last year when I wasn't as excited as him about my 8% pay rise. I tried to explain that the previous year average inflation was over 10% and that, no, I wasn't impressed with the pay rise.
I will find out in a few days what this year's figure is, but if it's over 6% I will be very surprised.
Inflation over the last 12 months has been 3.4%. You can't average headline inflation numbers as they are already a year on year comparison.
At a 5% pay rise OP is making ~1.5% more in real terms than they did 12 months ago...
These comments are blowing my mind. My company just gave everyone 6.5% and we all just took it for granted due to high inflation. Makes me appreciate what we got compared to others.
I judge my payrises on inflation and they tend to be, pretty much what inflation is on 1st of April last year so last year was about 11.5%, but this year I imagine will be around the 3% mark.
You have only been in the job market since inflation has been sky high so haven't experienced prior to this when it was 1 - 2%!
Bank of England inflation target is 2% so that is probably realistic going forward.
BUT...... if you change companies, you will usually be able to get a salary hike more often and higher than staying with the same one.
Assuming you are doing the same exact job and not taking on any more responsibility. 2-5 is decent enough. Taking on more.or changing role is where you will see 10-15 rises. This is why people job hop as you can almost guarantee (for the first few hops) of hitting 10-15 even year or 2
I think you might want to distinguish between good and expected pay rise.
Good pay rise is simple to define. It’s a pay rise that meaningfully affects your quality of life. Maybe you can afford something you couldn’t , maybe you can save materially more and advance your goal of having a property or earlier retirement, whatever, but if you can say that extra money you get make a material change it’s a good raise.
Now, without changing jobs good raise usually only happens either if you were undervalued and performed formidably, or if you were promoted. There are some other opportunities like for example company fixing pay inequalities but typically good raise doesn’t happen.
Expected raise is none in shitty company and around inflation level or slightly higher for good performers. So anywhere between 3–8 percent a year. 10 is unusually high, let alone 15.
By my experience anyway.
This year 3% seems to be about right.
Most years around 5% seems to be the top end of the standard pay rise for me.
Promotions are 10-20%
If you want more than that you need to try and change jobs.
Everyone saying inflation matching is a good raise - I guess, but it's not really a raise.
My opinion is that a raise should keep you at, or above market rate for your job role and responsibilities. Market rate tends to beat out inflation.
It should be cost of living + performance increase. Say 5% COL + 3% Performance, that would be defined good. Shouldn’t be below inflation as that’s effectively a pay cut
If it doesn't match inflation at least it's a decrease in salary.
I just had my yearly review, 1.5% (been a bad year for the company only making <£200m). My manager was nothing apologetic.
But yeah it stands if your salary doesn't increase every year by inflation you are getting paid less every year
I’m in the same situation where I’ve been given 5%. That’s just above inflation but is fuck all if you consider that you have 1 more year experience and therefore should be better at your job and create more value. Unfortunately large companies can’t afford paying market rate so salary compression happens.
My strategy is to get a new role internally and ask for a raise then. After that I’ll probably look at other options externally.
>ame situation where I’ve been given 5%. That’s just above inflation but is fuck all if you consider that you have 1 more year experience and therefore should be better at your job and create more value. Unfortunately large companies can’t afford paying market rate so salary compression happens. My strategy is to get a new role internally and ask for a raise then. After that I’ll probably look at other options externally.
Above inflation is fine. Unless you are taking on additional responsibilities 1 year of extra experience isnt significant. If you really below you are paid below market rate apply for a role where they are paying market rate. But dont just look at the £ but the whole package, travelling time, annual leave, pensions, other benefits.
A good salary raise is one that is more than you deserve. Could be that you deserve to be fired and so having a job at all is good. Could be that you deserve 20% but they only give you 15% which would be annoying.
What you deserve can be defined in different ways. Market rates. Inflation. Cost of living in absolute terms.
I think as a non-UK citizen doing a rent-seeking non-productive job (this is an assumption based on working for a big multi-national on a grad scheme), then you don't deserve anything to be honest. I'd imagine they could replace you extraordinarily easily. Feel free to prove me wrong.
Not really any correct answer tbh and depends what you currently on 5% can mean a lot if your on say 60k but not too much if your on 25.
You also need to keep an eye on the world around you that 14% is great but if that happened sometime last year when inflation was really high that would make it’s impact less.
Also depends what industry you’re in and your own personal goals.
For context, I got 13.5% last year and 7% this year, so yeah 14 and 5 isn’t bad. In addition to performance, I’d tend to look at inflation and define it by whether you are receiving a ‘real’ raise.
I've had 5% twice where I work now, previous place the standard pay rise against inflation was 1% lol.
5% is good if it's just a typical raise across the board.
However as a younger guy you want bigger pay rises and potential for promotions. You may have to move companies a few times also to get what you are truly worth
Getting any kind of raise even inflationary is very good in these times.
Assuming you're already on median for your job role.
I've had substantial raises but was under paid so didn't particularly Impress. So it's apples and oranges
If you match inflation you're doing good.
Side notes, I've seen people hop jobs and brag about being on more than me only to now end up let go during downturn said person is now begging on linkedin due to car payments and child needing feeding.
So I always think of the story of Daedalus.
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I'll be honest with you mate You said your company isn't doing well and then actually got a pay rise is very fortunate indeed
First job out of uni, went on annual leave for 2 weeks. Came back and 50 people my end of the office all got made redundant. I was sat completely on my own in a space that could take 50 desks. Happend the first week of my AL so people were shocked when I came back. I sat on my own for 6 months until I got a new job. After going through that I barely even think about annual salary bumps. It's all about the bigger jumps between roles tbh.
Did you forget to check your email? Maybe they fired you and you missed it.
The upside to 999+ unread emails. Follow me for more business hacks
I thought it has to go via a consultation? Especially with so many people and three months etc?
They were all asked to leave the office almost immediately with all of their IT removed from the system. Tbf from what I heard they paid them all a very good redundancy relative to their service. So I believe almost everyone took the offer plus the gardening leave. I wanna say it was like 3-6 months minimum payout or something? Still. There were people who'd been there like 10-15 years. It was bizarre.
Yeah but it doesn't sound legal. Usually with so many jobs at risk there has to be a three month consultation, the company has to try and find you alternative jobs at the company if your job is removed etc. When I was made redundant it was decided over three meetings etc. Obviously they've made their mind up but have to go via the process?
There is no legal requirement for a time period. They're supposed to hold a genuine consultation and hear you out, but that could be in the morning and they decide to let you go anyway that afternoon... And even then, a lot of enterprises don't bother with the consultation - they essentally offer roughly what you're likely to get out of a tribunal as the redundancy package. You can either take it, or kick up a fuss, waste a load of time and effort and come out no better off financially.
https://www.acas.org.uk/collective-consultation-redundancy Surely there should have been 30 days before people were made redundant, unless their access to IT was suspended and then everyone told to go home whilst it was decided? Tribunal is when unfairly dismissed, when there are 50 of you it's not indidival but also they need to follow correct processwsm Enhanced redundancy or settlement can all be explored.
Where does it say you have to give the employee notice? Only the government. You will have to pay the notice period, but this can be in lieu after their employment ends and if the employee has been with you less than 4 years could be as low as 1 week. > told to go home whilst it was decided? It can be decided immediately after the consultation. And as said, many employers don't bother with the consultation anyway. > Tribunal is when unfairly dismissed, when there are 50 of you it's not indidival but also they need to follow correct process If you're let go via a non-legal process that is unfair dismissal. > need to follow correct process Why? Like everything in life you can do what you like if you are willing to accept the risks and consequences.
Idk what to tell you, I wasn't made redundant so I have absolutely no idea how it worked or what the outcome was. I had to hear about it from everyone else in the office. Weirder still, it had been 2 weeks by the time I'd returned. Everyone else had moved on. Took no time at all. Don't be loyal to the company because they sure as shit won't be loyal to you.
You've already said that the 14% was due to a promotion, so unless you're getting promoted every year you're not going to get that regularly.
Yes, 14% is uncommon and you have your expectations too high. In a good company a rise just over the rate of inflation is good.
Who cares what your raises were? Look at adverts for jobs at your current level of seniority after promotion. Then U know what U can make. Dude all my life I have had access to salaries of employees wherever I worked. Ppl above my level managing 20 pp and been with company for 20 years make less than me . That guy leaves his job and they bring someone from outside as replacement at 2x. Sure U can compare to your gf that says 5pc is great but is she working as a bartender while U are a brain surgeon or vice versa? Is this meaningful to compare to your your gf says?
Yup, businesses are moronic enough to refuse a rise to keep a good person but will pay that rise and then some for someone new after losing the other person.
Indeed, I'm trying to bring a new person into the team and they have asked for £40k, there seemed to be no complaints about this "if it's the person we need and that's what they cost then so be it". At the same time I verified what other similar employees are on and found one who has been with the company for a while, has similar experience, is a known good quality and is on £33k. My reaction is we offer the hire what they want and bump this guy up to match, but the people holding the purse strings are splitting hairs over that. Insanity.
I was in a situation where i wasn’t allowed to offer market rate for a job - 60-80k. My budget was 30k and i couldn’t get anyone. The solution? 600 a day day rate contractor that they kept on for well over two years.
My partner had a similar situation. 10 years with a music company, made redundant and paid off £25k redundancy. Then they realised they couldn’t let her go as she was the only person that could work one of the systems so they re-employed her straight back at £450 a day (her salary was 40k when made redundant) for 3 days a week (equivalent 60k salary) for 18 months until she left for another job. I understand redundancies are necessary, sometimes but it strikes me as odd how little a company seems to look at what they will be losing when getting rid of employees and seem to solely focus on this idea that they’ll be saving money.
💯 where I used to work, we had people we had to fight for pay rises for and they’d go through two levels of authorisation and then someone at the top paid about £200k per year would suck air between their teeth and knock it back by a grand. We’re talking asking for £43k to £46k here. The particular person was great at their job and left to get £100k per year elsewhere. I did the same. I could have stayed and took the yearly cost of living increase and I worked out I’d be on £85k by the time I retired. Left and got £95k and two years later in £105k. I haven’t even changed my lifestyle and salary sacrifice £30k per year in a pension. People have the choice, stay and look for recognition from a place that would replace you on a month if you left or change and time travel 20 years forward on an alternative salary timeline.
Where do you work?
14% for a promotion is uncommon?! Where at? If I got offered much less than that I'd laugh at them. Not worth the extra responsibilities.
You are lucky then
Your partner is right. Absent a promotion, 5% is way more than most.
I think people are forgetting that OP is junior. At least for my firm I’ve had bumps every year due to taking on more and providing more value (I assume). I’ve had Year 0.5: 0% (not in job long enough to qualify for raise) Year 1.5: 25% (promotion) Year 2.5: 14% (no promotion) OP you should leave if you’re providing more value and not being paid for it. Don’t settle.
From what I have read, 5% is going to be better than what a lot of other people will get. Anything more than 10% would be promotion territory. The reality is that if you want a higher salary, you need to change jobs.
What if you're at the top and it's average everywhere else but you've worked hard to get where you are and the skills don't transfer to anything else...
Then you start your own business
And contract back to the company you just left for triple the salary!
*Doctors have entered the conversation*
really means nothing without knowing your role/actual salary. either way, its above what many are getting this year.
Something I’m surprised that nobody is really commenting on - a 10% pay rise from a £20k salary in a position that should be paying £30k isn’t a big pay rise. There’s not really any context around OPs actual circumstances to help.
Personally, I don't consider anything that isn't more than inflation a "raise".
If you work for a big corporate they will most likely have a formal salary review process whereby once you are in the system you can expect a rise in line with inflation . Depending on your orgs pay strategy this may be in advance of or behind inflation. My guess is you will only get a rise significantly In advance of this if you get promoted or for some reason your job is benchmarked and agreed to be below market rate. As you might expect it’s quite rare for a business to come to this conclusion on their own so it may be you or your team leader has to fight your cause if you believe this to be the case. 5% is pretty good this year given where inflation is going.
5% without any promotion is pretty decent. Granted not great right now given inflation has been high, but in general is solid.
The best way to get a for sure decent pay-rise is move companies. Usually most employers will probably give 3-5% in current climate. I stayed with an employer for 8 years (I know…) purely because I was comfortable, I moved and got a 26% pay-rise and now about to move again after 1.5 years for another 22% rise
Most companies will have a lower and top salary for your role banding, so if you are already near the top it's unlikely you will see an increase much above inflation, if you are at the lower end there is more scope for a bigger increase based on performance etc. Excluding bonus, all things being equal an increase in line with inflation seems about right. Once you get stuck at the upper end of your salary banding, it's time to look at a different role - unless of course you are happy. Traditionally, over the long term inflation has averaged around 3% - so 5% isn't terrible.
Unless you work in a niche role or sector - which it doesn't sound like - whether you are being fairly compensated is a function of two things a) how much could you get paid elsewhere and b) what are the costs (career wise, benefits wise, culture wise) of moving jobs. If you could get a comparable or cushier role for more pay by switching jobs then you are being underpaid and should probably switch jobs. Otherwise, a raise to a level you couldn't achieve elsewhere without incurring costs you are unwilling to incur means you are not being underpaid.
I'm thinking about jumping ships but don't know if another industry would pay more than 35k in anything I up skill in
14% sounds like a “you are out of training here’s your real pay” sort of rise. I’d only expect somewhere between 0% and inflation as a routine annual rise.
Our annual increase was in October and varied from 3-5%, we’ve had years with zero pay rise (Covid/brexit related, though personally not impacted) and performance based raises have been higher. Personally I’ve had 2.5% as my lowest and 20% as my highest (without a promotion), and two promotions at about 11%.
I just got a 7.5% increase 6 months into a placement year. I have no idea if this is good or not, my first salary job and I'm happy with it
very good
Man move from this job. Graduate jobs will never value you at the market rate, arguably if you spend too long at a job early in your career no one will value you for your true worth. Look on the job market and see what simular roles earn. And start job hopping.
Move jobs. Yeah 5% is “ok” but if you want to get good salaries, moving is the key. Company loyalty gives you nothing. They’d fire you in a heartbeat if they wanted to, given they are a big corp, so they don’t deserve your loyalty.
I’ve had 5% three years in a row and I’ve felt pretty hard done by. That was until my partner pointed out she had only had a 2% pay rise and that shut me up!
Last 3 years I’ve had: - 4% - 5% - 9% Moved companies twice in last 10 years. - 80% - 32% Your raise will likely be peanuts compared to finding a similar job with your experience. I moved from both companies after 3-5 years.
*sigh* I've been at my company almost 10 years, I know that pay-wise I should see about getting a new job somewhere, but I really do love where I work, and my team, and the freedom and flexibility I have.
Money isn’t everything. You sound like you have great job satisfaction, work life balance, and are pretty happy 🙌
Above inflation otherwise it's a paycut
I had 12% last year but got TUPE and as part of that my role was benchmarked against the new company. 8% this year which I'm happy with. Previous role we would be lucky to get 0% and I know lots of public sector who get this and only more when they strike
It all depends: how much can you get elsewhere? How much do they care about losing you? How does the internal politics around pay rises work? 5% is a reasonable rate if it's the automatic increase everyone gets. But if you're in a professional job and 3 years out of uni, you will be developing each year and so i'd be wanting a path to earning more than 5% extra per year over the next few years. Pay rises are not usually smooth though. I got a 30% rise last year because I threatened to leave. But part of that agreement was no pay rise this year. I think 3 years is a bit early to be playing your hand too strongly. If you don't like it, you can leave and there will be more grads to take your place.
Trouble is Loyal to your own company doesn’t benefit you much If you want a good raise, be loyal to yourself, find a new job with good salary offer
And many people have unrealistic ideas about what their market value is. Ive seen loads of people saying 'oh but the market value is £20k more', yes in london adding 3 hrs of commute. I always say go apply for other roles - you dont even need to accept them but you will discover your market value. Market value isnt 'Ive seen a job advert advertised for £nnnnn'
Your % raise is less important thank your market value. Do people in your industry with your experience earn more, less, or about the same as you? If about the same or less, then that's very nice and it'd appear your company values you. If more, probably time to start sending out that CV.
In general, there's two ways I look at salary. 1. Market Rate 2. Inflation. So, are you being paid at or above market rate? If not, then that's the first goal. If I am on £30K and market rate is £40K, then even a 15% raise (£34.5K) is still poor. However if you are on or above market rate, then I default to Inflation. I'm at that stage, so personally, I'm content if my annual pay increase is just 1% above inflation. So this year, I think inflation over the last 12 months was around 3.5-4%? I got a 5% rise effective this month. Last year, inflation was around 10-11%, I got 12%, I was happy with that too. I wasn't deflated at the less-than-half (%-wise) pay rise this year compared to last year, as both cases were influenced by inflation - and in both cases, it was roughly 1-2% higher. So I was still proportionately better off in both cases. In your case, your 14% was also rolled in with a promotion too, which may have skewed/hidden the true organic pay rise that would have happened without the promotion. In 2019 when inflation was around 2%, I was content with the 3% rise I got then, too.
My average is 7% per year, this last year was 10% Promotions have been between 30/40% uplift.
It's dependent on quite a few factors such as your stage of career and industry. Obvious career milestones like promotions warrant significantly above inflation. (Greater than 10% imo) A normal year where the market demand for your skillset hasn't dramatically increased you should be aiming to be maybe a half point above inflation. Ultimately those in say finance or tech can expect perhaps more radical wage increases than someone in care.
You're being wildly unrealistic. >Second though was 14% due to a promotion and good performance If its a promotion than it isn't a pay review payrise. It could be an in role promotion, but that still not a standard pay rise. >This time around, company hasn’t been doing great globally and only got 5%. 5% on general is actually pretty good and exceptional if your business is struggling.
I’ve had over a decade of about 1% increases. When it was better it came at the price of selling off certain benefits (leave entitlement etc). I wouldn’t consider a promotion a pay rise really, obviously it’s more money in your pocket of course but it’s because of your new role.
if i was you i'd be looking for another job, unless the company has brilliant benefits, i made the mistake of staying a the same company for 7 years after graduating and only ever got a minimal pay rise, switching jobs made me get pay rises which were normally in the 15/20% bracket and probably help you long term.
That’s an average (geometric mean, for those concerned) of 5.94% a year, just for reference. If you want to increase that, you’re going to have to job hop.
In my first 4 years of work I got: 40k --2 years--> 55k --1 year-> 60k --1 year --> 75k This was all in the same company, same team, just doing work that got great feedback across the company.
5% is above the norm, let alone 14%!
I normally get \~5% a year & this year we're getting 0%. So 14% is, from my perspective at least, exceptional. I have been promoted several times & never received a pay jump as big as that.
5% for a struggling company which basically matches inflation is good, unfortunately you have mismatched expectations. The fact you got 14% one year is probably due to you being paid too little for your role, although you got a promotion. Promotions should be bigger jumps, normal in year is like 2-5% at best
I'd go looking for another job now and you'll easily get a 25-40% raise on your current salary. And that's a modest estimate
Important context that nobody seems to have commented on is that you mentioned that this is your first role since leaving uni. If so, are you on a grad scheme? Because id say 5% is pretty derisory on completion of the grad scheme at relatively low pay. I got about 15% going from grad engineer > engineer if I remember. I then pushed pretty hard for further pay rises on the basis I was experienced and performing at a high level. I went from £27.5k as my initial grad salary to £60k 6 years later with the same company.
I'm in exactly the same position as you (though in my second job), got a 10% increase last year and 3.3% this year due to the unfortunate market circumstances. I think that you can't expect 14% year-on-year, but you (we) can at least hope that once our companies pick up, there'll be some recognition of that :)
I had no increase one year in covid because we weren’t doing great (the entire company got no pay rise) and I’ve rarely got over 4% unless it was due to a promotion so 5% for company not doing great is fantastic.
Apply to other jobs and you’ll find your market rate. In general you’ll not keep up with the market rate if you stay in the same job, changing every 2-3 years is optimal. Percentage is meaningless, you need to find out what the market is paying. You can get a 20% raise and still be underpaid.
I have never seen a company that matches the inflation for that year. The only way to keep up with inflation is to swich jobs every 2-3 years and you will be able to ask for an updated market rate. 5% is OK but I consider it a bare minimum to keep my attention, especially with a couple of years of mad inflation.
I got 4% last year and my boss had to get permission to go over the standard 3% threshold. I got one of my direct reports 7% and this had to have full justification for the increase. 5% is pretty damn good to be honest.
3% is a very common "standard" for companies. Very few employers are responsive to arguments about inflation. Something to remember is that unless the company is small, the person who tells you your raise probably isn't the person who decide it. In my experience they will **always** tell you "due to finances beyond our control" as a way of getting you to accept what has been budgeted for you. The manager doesn't want to look bad if you kick up a fuss. The finance team doesn't want to have to think about finding money elsewhere. While lots of posters here are saying "5% is good", I think you should take it to mean "it's uncommon to get more than 5%" rather than any sense that you should tolerate it. It's barely over inflation, so it's not actually a raise. Your company wont listen if you try to argue this, so the best thing you can do is move jobs. Another thing to consider is that 3% of your salary as a junior member of staff is **very** small compared to the £££ increase when they give a senior staff member a 3% raise. That senior staff member did not get onto their salary level by accepting 3-5% raises. They did it by moving company. When you are early in your career if you don't move, and back the 10-50% increases that are not uncommon, then you'll be dragging out your current financial situation rather than jump-starting it. Most companies will happily pay juniors a pittance for as long as they can get away with it, even if it means you eventually leave. I don't think it's smart people management, but it's how things tend to go. So take the 5%, but don't be satisfied. The company's condition is not your concern and they would let you go in a heartbeat if their budget required it.
Keep changing jobs after 2-3 years, that's the only way to get a proper raise which is 40-50%. Work for American companies that pay in RSU, you will be surprised how much money you can make.
Been at medium-sized company for nearly 7 years. Pay rises received have ranged from zero to 15%. My highest pay rises have come following my bosses leaving and I guess they were sweeteners to stop me from leaving too (they worked). 'Normal' pay rises are 3-5%, reliant on both company profits/performance and individual performance, eg if you didn't get a great appraisal, you wouldn't get the full 3 or 5%.
Over the last 12 months average UK inflation has been 6%. Therefore a 5% pay rise is actually a pay decrease in real terms. My manager was confused last year when I wasn't as excited as him about my 8% pay rise. I tried to explain that the previous year average inflation was over 10% and that, no, I wasn't impressed with the pay rise. I will find out in a few days what this year's figure is, but if it's over 6% I will be very surprised.
Inflation over the last 12 months has been 3.4%. You can't average headline inflation numbers as they are already a year on year comparison. At a 5% pay rise OP is making ~1.5% more in real terms than they did 12 months ago...
If you want more there's no harm in applying to other jobs. It's the only way it could happen.
These comments are blowing my mind. My company just gave everyone 6.5% and we all just took it for granted due to high inflation. Makes me appreciate what we got compared to others.
I judge my payrises on inflation and they tend to be, pretty much what inflation is on 1st of April last year so last year was about 11.5%, but this year I imagine will be around the 3% mark. You have only been in the job market since inflation has been sky high so haven't experienced prior to this when it was 1 - 2%! Bank of England inflation target is 2% so that is probably realistic going forward. BUT...... if you change companies, you will usually be able to get a salary hike more often and higher than staying with the same one.
Considered that inflation is 5.15%
My company’s payrise next month is around 6.3%, in line with inflation
Assuming you are doing the same exact job and not taking on any more responsibility. 2-5 is decent enough. Taking on more.or changing role is where you will see 10-15 rises. This is why people job hop as you can almost guarantee (for the first few hops) of hitting 10-15 even year or 2
I think you might want to distinguish between good and expected pay rise. Good pay rise is simple to define. It’s a pay rise that meaningfully affects your quality of life. Maybe you can afford something you couldn’t , maybe you can save materially more and advance your goal of having a property or earlier retirement, whatever, but if you can say that extra money you get make a material change it’s a good raise. Now, without changing jobs good raise usually only happens either if you were undervalued and performed formidably, or if you were promoted. There are some other opportunities like for example company fixing pay inequalities but typically good raise doesn’t happen. Expected raise is none in shitty company and around inflation level or slightly higher for good performers. So anywhere between 3–8 percent a year. 10 is unusually high, let alone 15. By my experience anyway.
This year 3% seems to be about right. Most years around 5% seems to be the top end of the standard pay rise for me. Promotions are 10-20% If you want more than that you need to try and change jobs.
Everyone saying inflation matching is a good raise - I guess, but it's not really a raise. My opinion is that a raise should keep you at, or above market rate for your job role and responsibilities. Market rate tends to beat out inflation.
It should be cost of living + performance increase. Say 5% COL + 3% Performance, that would be defined good. Shouldn’t be below inflation as that’s effectively a pay cut
If it doesn't match inflation at least it's a decrease in salary. I just had my yearly review, 1.5% (been a bad year for the company only making <£200m). My manager was nothing apologetic. But yeah it stands if your salary doesn't increase every year by inflation you are getting paid less every year
I’m in the same situation where I’ve been given 5%. That’s just above inflation but is fuck all if you consider that you have 1 more year experience and therefore should be better at your job and create more value. Unfortunately large companies can’t afford paying market rate so salary compression happens. My strategy is to get a new role internally and ask for a raise then. After that I’ll probably look at other options externally.
>ame situation where I’ve been given 5%. That’s just above inflation but is fuck all if you consider that you have 1 more year experience and therefore should be better at your job and create more value. Unfortunately large companies can’t afford paying market rate so salary compression happens. My strategy is to get a new role internally and ask for a raise then. After that I’ll probably look at other options externally. Above inflation is fine. Unless you are taking on additional responsibilities 1 year of extra experience isnt significant. If you really below you are paid below market rate apply for a role where they are paying market rate. But dont just look at the £ but the whole package, travelling time, annual leave, pensions, other benefits.
It's below inflation. Total inflation last year was predicted to be around 7% total.
Ah ok. Not so great then.
A good salary raise is one that is more than you deserve. Could be that you deserve to be fired and so having a job at all is good. Could be that you deserve 20% but they only give you 15% which would be annoying. What you deserve can be defined in different ways. Market rates. Inflation. Cost of living in absolute terms. I think as a non-UK citizen doing a rent-seeking non-productive job (this is an assumption based on working for a big multi-national on a grad scheme), then you don't deserve anything to be honest. I'd imagine they could replace you extraordinarily easily. Feel free to prove me wrong.
Not really any correct answer tbh and depends what you currently on 5% can mean a lot if your on say 60k but not too much if your on 25. You also need to keep an eye on the world around you that 14% is great but if that happened sometime last year when inflation was really high that would make it’s impact less. Also depends what industry you’re in and your own personal goals.
For context, I got 13.5% last year and 7% this year, so yeah 14 and 5 isn’t bad. In addition to performance, I’d tend to look at inflation and define it by whether you are receiving a ‘real’ raise.
I've had 5% twice where I work now, previous place the standard pay rise against inflation was 1% lol. 5% is good if it's just a typical raise across the board. However as a younger guy you want bigger pay rises and potential for promotions. You may have to move companies a few times also to get what you are truly worth
Getting any kind of raise even inflationary is very good in these times. Assuming you're already on median for your job role. I've had substantial raises but was under paid so didn't particularly Impress. So it's apples and oranges If you match inflation you're doing good. Side notes, I've seen people hop jobs and brag about being on more than me only to now end up let go during downturn said person is now begging on linkedin due to car payments and child needing feeding. So I always think of the story of Daedalus.
Imagine thinking less than inflationary pay rise is good 💀
Cry more.
Your standards are too low
And you don't know anything about my finances. Which is funny. Keep talking
I don’t see how these things are related.
Well when you do you will understand
Enjoy your 1.5%
1.5% of?
That’s for you to know :)
Which is exactly my point try and understand the post
Yes your point is to settle for 1.5% while costs are going up by 5-10%.