Employer Is Paying Peanuts

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    2ndeffort on 02/10/2014 - 14:49

    Sage advice. If you are doing the job for 3 years and havent worked out you are underpaid and walked to the competition yet, why would they give you a 100% payrise? If you do the whole 'i am underpaid, look here are the industry averages' best case they will tack on a few extra $K, pat you on the head and hope you keep going for less than market rates for another 10 years!

    It is all about demand and supply. You have no bargaining chips. Best negotiation tactic for you is to get onto Seek, find another job that pays what you think you are worth then either:

    1. Take the other job and move onwards and upwards, or

    2. Go to your current employer and tell them you are going to walk to the other job unless they beat what the other mob is paying.

    You cant make hollow threats though you have to be prepared to walk.

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  syousef on 02/10/2014 - 19:09

  I've been quite lucky. I have never asked for a pay rise outright. I work quite hard. I have either gotten a pay rise at review time or, the one time my bonuses were pulled and my pay was effectively cut (after dot com boom) I moved on. I've only had 3 jobs since leaving uni in '98 so I'm not job hoping constantly. My view is you're either valued and considered valuable or you're not. I'm not too proud and would ask IF I thought it had some chance of success. Begging doesn't improve your value. Threatening to walk if you're not better paid is never a good move.

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  SeVeN11 on 02/10/2014 - 20:41

  I think you really need to listen to this.

  Its going to be 40-50mins investment in your time listening. But it will be worth it as it will educate you on how to professionally approach this opportunity.

  Looking for another job and using that as a threat is not a professional way of approaching this. Given you do like your job and the company. if you approach this right, your boss will think more of you and get a more goodwill.

  Obviously if this approach doesn't work. Then you need to consider your best alternative. Which may be to really find another job or whatever you think its appropriate given your current situation.

  Link

  I use and refer to this website for all my career & management advise and have recommended to many people

  Good luck.

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  yannyrjl on 03/10/2014 - 16:34

  +1

  hi OP, I agree with most of the suggestions here. Do some research, and have that frank discussion with your boss to explore all options. Potentially they can't offer you money but could offer other things so consider if anything else will also make you happier i.e. training, studies, conferences, business trips etc.

  To be honest I think they are taking advantage of you as you've worked there for more 3 years, but I speculate you are too focused with your work and haven't really had these discussions. So the burden is partly on you as well.

  If you do not get the outcome you are looking for after exhausting all options. Leave the meeting on a good note, but be prepared to consider other options.

  I left my first job under similar circumstances although not quite as extreme as your case, the different was around $15k. Conversation didn't get me anywhere. My boss basically said, the other guy won't get as much increase and I will catch-up in 2-3 years !!!

  I started looking and found my next job for more than the $ difference, working less hours (I was starting a young family) and with less pressure.

  Good luck

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  Cheeper on 04/10/2014 - 21:55

  Ask to have a 10 min private chat with your boss. Ask him if your performance is up to expectations and if there is any area in which you could improve.
  Next… go straight for the jugular and ask for a raise and go for $95k. Do not ask for less than what the new boy has been given, that just shows that you undervalue yourself.

  When situations like this occur it can be for many reasons and thus the reason for the first question to put to your boss.
  Sometimes the situation you are in happens because the business no longer values you? Just a possibility.
  If you have the skills you say then seek another employer who would appreciate what you have to offer, but at $100k. You not only owe this to yourself but your family as well.

  You are the product in this market, do not undersell your product.

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  malkakas on 14/10/2014 - 11:18

  I work for a large IT service provider. I had a similar situation where I was paid around 20K below the market rate. I raised the issue with my GM and told him that I am getting peanuts while the company make 4 times my hourly rate from my client for my work.

  I told him that I got very good feedback from my clients and team lead. This worked up to some extent and I got a 10% pay rise while others in the company only got 2-3% rises.

  My manager was very helpful in this case and he said that lot of people go out and come back with better rate a year or so later.

  Now the difference is about 12K and the pain is less now. I know the next year I can't expect another 10% rise as the business is not at it's best this year.

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  Ash-Say on 23/12/2014 - 08:16

  Update:

  I have already submitted 6 pages long 2014 performance review explaining all the achievements and how I added value to business and exceeded all the expectations. As the business required colleague feedback and I did not formally receive anything prior, I requested my colleagues to comment on my performance and and I received outstanding feedback by an email.

  I have put 1 as a performance rating which is the highest and I am looking forward to meeting with line manager now (not scheduled yet) so I could raise my concern around shit pay.

  Finfers Crossed!

  P:S I have got 4 different salary guides and 3 job ads handy to be used as supporting documents during discussion.

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