Your Manager Loves You. Here’s Why Your Raise is Awful.

by Evil HR Lady on July 6, 2016

A reader sent me an email asking if a “1.75 percent raise” was appropriate for salary in the 90k range. “It’s like giving a waitress a $7 tip on a $300 meal,” he wrote.

First of all, wouldn’t it be awesome to get a 15-20 percent raise each year? Second, if any of you leave a $7 tip on a $300 meal, you deserve a good smack down, but raises and tips are not the same things. The reality is a 1.75 percent raise can be an awesome raise, and it can be a terrible raise. Here’s what is going on behind the scenes.

Budgets. Unless you’re reporting to the CEO or maybe the CFO, your boss didn’t set the budget for raises. The executive team determined what the budget would be. This was based on numerous things-not just what the cost of living would be next year compared to last year. If the company doesn’t have tons of money to spare, budgets are going to be lean.

To keep reading, click here: Your Manager Loves You. Here’s Why Your Raise is Awful.

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