SavvySugar

Relating to the Office: Raise Talk Isn't Easy For Anyone

SavvySugar — Fri, 02 Oct 2009 12:00:26 -0700

On this week's episode of The Office corporate alerts Jim and Michael that there won't be funds to give everyone a raise and the co-managers are tasked with telling the team the crushing news.

Jim makes his first big call by announcing only the salespeople will receive raises. This immediately insights panic and questions from the ranks. While Jim and Michael feel the pressure to make everyone happy, the crew is understandably upset by the news and quick to jump on Dwight's revolt train. They even snoop in on Jim and Michael's bizarre promotion based on photos and beans project in the conference room.

It's a whole mess of silliness, but an unorthodox reminder that talking about raises with co-workers can get hairy, and isn't easy for employers or employees. Do you discuss raises openly with people at your workplace, or is money talk kept behind closed doors?

Photo courtesy of NBC

Pay Raises Are Barely There in 2009

SavvySugar — Wed, 22 Jul 2009 04:30:40 -0700

Goldman Sachs employees might be poised to earn record bonuses this year, but the average employee is lucky if she receives a raise that covers the cost of living. According to The Wall Street Journal, human-resource consultants Watson Wyatt Worldwide Inc. and Hay Group estimate that median pay raises for 2009 ranged between two and three percent.

Given that millions of Americans remain jobless and others are dealing with reduced hours, the barely there raises for employees might seem fair. But when the future isn't looking so good in terms of making up for this year's low or no pay increases, it's easy to see how the lack of incentive might encourage mediocre productivity. Another consulting firm, Hewitt Associates, ran a survey that indicates the same record low increase for 2009 determined by the other two surveys, and it predicts a minor improvement for 2010.

Did you receive a raise this year?

Your Two Cents: Are You Getting a Raise This Year?

SavvySugar — Wed, 17 Dec 2008 11:30:56 -0800

It seems, this year, many Americans are getting coal in their salary stockings. It's not surprising given the rough year most employers have had, but it is eye-opening once we realize how 2008 differs from years past.

Hewitt Associates surveyed 640 companies that together employ nearly 13.5 million and discovered that 50 percent of these companies are cutting back on labor costs. Anywhere from 7 to 10 million employees could be affected by the cuts, which include less generous pay raises than in years past. According to CNN Money, it's estimated the companies cutting back will give raises of less than 3 percent for the first time in the study's 32-year history.

A cost-of-living type raise isn't much to write home about, but it's better than nothing. Will your salary get a boost in 2009?

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Three Things to Ask For If Your Raise Is Unremarkable

SavvySugar — Mon, 27 Oct 2008 09:30:20 -0700

Performance reviews aren't all about the money, but for an employee's bottom line, they are. Companies have been making big decisions this quarter based on the poor performance of the past year and the uncertainty they face going in to 2009. With big companies laying off by the thousands (in the last week we saw Yahoo and Goldman Sachs cut ten percent of their massive workforces) and many smaller companies instilling temporary hiring freezes, we can be fairly certain that 2008 raises will be, at most, unremarkable. So what if you want more to show for your hard work in the last year than the fact that you held on to your job? See three things to ask for when you read more.

Fitness: You might love your gym or fitness studio, but hate paying the membership fees. Because health is a bottom line issue for employers battling the high cost of health care, it is both in your interest and theirs that you stay healthy. Propose that the company subsidizes your fitness fees and negotiate a monthly amount that you will be reimbursed for these costs.
Work one day from home: This isn't feasible for all jobs, but in this computer and conference call driven culture, many duties can be seamlessly moved from the office to your home. Telecommuting isn't rare for full-time employees so, if it would make your life less stressful to work from home one day a week, ask for it.
Gas / Transportation: You have to get to work somehow, and more often than not it involves spending money. Negotiate an amount that you will be reimbursed for gas or other transportation costs to cut down on your monthly commute expenditures.

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Grind Tip: Ask for This, Not That

SavvySugar — Mon, 06 Oct 2008 08:00:03 -0700

Asking for a raise right now might be out of the question as many companies are making personnel cutbacks, but that doesn't mean you can't do anything right now to make yourself more valuable to your employer. If you're in a position where you would normally be getting a raise but it's a no-way no-how situation this year because of budget reasons, consider asking for different responsibilities instead.

Ask your boss if there are any new responsibilities that you can take on that would give your job description more depth. The more you're capable of doing for your employer the more you are valuable to her - a well-rounded employee is an asset and you'd be in a better position to ask for a possibly even more substantial raise when things turn around. Constantly learning and seeking opportunity is key in remaining competitive in your workplace and the job market.

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Money Tip: Ask For a Raise in These Terms

SavvySugar — Wed, 17 Sep 2008 08:00:25 -0700

We've been through the big points in asking for a raise, including how to approach your boss, maintaining confidence and poise, and how to prepare for an effective negotiation. One fine-tuning point is the way that you should actually put your desired raise into numbers: Ask for a particular percentage raise, not a specific dollar amount.

Telling your boss this number is probably the thing that makes you most nervous about having the conversation in the first place. Get through to your boss by speaking her language: Whenever I've been informed of a raise, it's always been presented as a percentage. Dealing in percentages makes it easier to negotiate and sounds more professional than dealing in dollars.

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Want a Raise? You'll Have to Work For It

SavvySugar — Tue, 09 Sep 2008 04:00:00 -0700

Have you been feeling like you're in a seemingly endless salary funk? You're so not alone. A new Hewitt Associates study shows that base pay in 2009 will rise just enough to make it the seventh year in a row of flat salary growth. That's quite a long time for workers to be barely keeping up with inflation, and those of us who entered the workforce within the last seven years may have more than noticed that our salaries are taking small baby steps.

While we can't expect a boost in our base salary, the good news it's expected that one-time performance-based pay will grow by 10.6 percent. These are different times than just a decade ago, when the majority of compensation growth came from increases in base salary rather than merit-based bonuses.

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How to Save More Without Earning More

SavvySugar — Thu, 21 Aug 2008 12:30:41 -0700

Raises may be a rare occasion during these days of employer belt-tightening, and when they do come along they're likely to disappoint. Stagnant paychecks don't have to imply savings-as-usual - there's a tangible way to save money without earning more!

Scott Burns of MSN Money calls it the "Power of Attentive Spending," but I just call it a good idea. When you hold a magnifying glass to your spending there's no doubt you'll discover places where you can find better deals and spend less. Consumer Reports' August issue is confident we can save $500 each month by reviewing these six expenses: car insurance, life insurance, food shopping, phone costs, bank fees, credit card bills.

Even if you can't find $500 within your expenses that can be turned into money saved, a lesser amount would still have a positive impact on your savings. However you manage to cut your bills and save the money instead, Burns suggests you think of the amount you save over one year as after-tax income. So, if your salary is $50,000 and you find $6,000 by using your power of attentive spending, that's a not-too-shabby, after-tax, 12 percent gain.

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I'm Asking: Have You Ever Asked For a Raise?

SavvySugar — Wed, 20 Aug 2008 09:30:03 -0700

More than half of you indicated that you're not fairly compensated for your job, which means the majority of you are disappointed every time you look at your paycheck.

When we're not properly rewarded for our efforts it can be hard to keep giving our all at work, and sometimes it becomes obvious that our situations won't change unless we ask for more. Have you ever requested a raise?

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Career Tip: Keep This in Mind When Asking For a Raise

SavvySugar — Thu, 17 Jul 2008 15:32:58 -0700

Confidence is key when asking for a raise, and the strength in your argument and poise in presentation should come from your accomplishments and conviction that it's the right move. Listing your personal financial hardships should be left out of the equation when approaching your boss; if you really do need more money and are ready to take on more responsibility, find out what you can do to make yourself more valuable.

While I think the point is pretty clear, Michael Zwell author of Six-Figure Salary Negotiation said it best: "When we were young, our parents told us that if we wanted money, we had to earn it. So, we mowed the lawn, did house chores or watched younger siblings to earn a buck. Similarly, if you need more money per paycheck, ask your boss how you can contribute to earn a little extra."

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