Salary Increase Expectations, and How Is Yours Going?

Ozbar Gain on 28/08/2024 - 14:41

I've been with the same company since pre-covid as a senior software developer.
Every year our company gives a raise that is more or less in line with inflation.

Using PayCalculator's inflation calculator (scroll to the bottom of the page), if I put in my starting salary and the date I started there, it tells me how much effectively I should be earning today to keep up with inflation.

Using that, I'm about 4% short from what I should be earning now to just be on the same income level as when I started in 2020. And this is after this year's raise & the 2024 tax cuts.

Now the company I'm working for is small, software isn't their main business, and there isn't a clear career development path. While its a good gig where I learn a lot, my new skills don't translate to a higher salary and this frustrates me.

I'll be forced to look for a new job soon if I want to progress in my career and salary.

Am I wrong in expecting to at least have been in line with inflation, given that my skills are now worth more to the company than when they hired me in 2020?

PS this is my first job in 'Straya and I'm not sure if inflation-related increases are common here and my expectations are too high?

Financial

Comments

  • Jimothy Wongingtons on 28/08/2024 - 14:46
    +7

    Ok… so first question: have you actually talked to anyone in management or HR about this - or are you sitting there fuming they aren’t within line of your conceived expectations of what should be the norm?

    I'll be forced to look for a new job soon

    Well if you’re only chasing a money figure just start looking. All my friends easily secured anywhere from 5-25% increases everytime they jumped ship. Should be easy to secure a job if you’re as skilled as you say.

    • Ozbar Gain on 28/08/2024 - 14:49
      +1

      Oh I should've mentioned, our annual performance conversations are scheduled for next week so that's a time for me to raise these concerns but I guess I'm just after some opinions before then.

      These perf conversations never lead to salary increases (as confirmed with other staff). There is a lack of proper management

      • soan papdi on 28/08/2024 - 16:41
        +6

        our annual performance conversations are scheduled for next week so that's a time for me to raise these concerns

        Rookie mistake. Your manager should be giving you performance related feedback all year, not annually. If they don't, bring it up and talk yourself up every month or two saying "I did X, Y and Z in the last two months" while putting it in writing, say a shared doc or in email. Ask for feedback at this time, what can you do better or focus elsewhere. Use this as ammo at the annual raise cycle if he says you've not done enough.

        Not sure if you are, but if you just work well in silence, no one will care. Promotions and raises are about good work and also seen to be doing good work. This involves talking yourself up tastefully. Try and schedule skip level meetings with your boss' boss too, maybe once in 2-3 months. They need to have a good impression and it makes your manager's job easier to keep you happy.

    • Ozbar Gain on 28/08/2024 - 14:50

      Didn't mean to come across as super skilled, I meant more that I've grown to be more valuable to the company than when I started

      • Tily on 28/08/2024 - 17:54

        Has your manager or company acknowledged your growth and value to the company? Or have you presented your value/worth to them? If you have been sitting in silence, nothing “extra” is going to come your way unfortunately.

        I’ve always presented my case with achievements, workloads, upskilling, etc. on why I should get XYZ increase and negotiate from there. If you don’t ask, it won’t happen.

    • HeWhoKnows on 29/08/2024 - 15:26
      -1

      I say to OP

      Welcome to the REAL WORLD.
      This is happening everywhere!

      I can argue the same with the interest rates on savings accounts.

      The only way to get a decent pay increase (or higher interest) is to move on.
      Better start looking!

  • pyramid on 28/08/2024 - 14:48
    +8

    In corporate world of you don't speak up / ask, it's assumed you are happy in what you are doing and getting.

    • 87percent on 28/08/2024 - 18:54
      +3

      Pfft.. you think just because you say something that they’ll magically raise your salary? And also, job hopping is not likely in this current market

      • pyramid on 29/08/2024 - 18:45

        No. What i m saying is OP should raise his concern of salary with his manager or HR, if they don't care then OP should move on if he needs bigger salary.

  • ThithLord on 28/08/2024 - 14:52
    +3

    This time last year I received a 4% increase, unprompted, and then this year a 2% increase, unprompted. The company performed quite poorly the last year, so I'm happy they've offered this without need to force it. I get paid pretty well for what I do, and money isn't everything to me, so I'm content.

  • coffeeinmyveins on 28/08/2024 - 15:35
    +2

    given that my skills are now worth more to the company than when they hired me in 2020?

    not how it works

    Am I wrong in expecting to at least have been in line with inflation,

    again, not how it works. plenty of people are getting 0% or less than inflation, so in real terms they are losing money.

    Doesn't mean it's right, but that's just the reality for a lot of people

    People can't expect to "pay the same amount for everything" but at the same time "get more money every year". The two are linked.

    • Ozbar Gain on 28/08/2024 - 15:36

      People can't expect to "pay the same amount for everything" but at the same time "get more money every year". The two are linked.

      Exactly, hence the question about falling behind on inflation increases

      • coffeeinmyveins on 28/08/2024 - 15:51
        +2

        I just re-read your post and your last point

        PS this is my first job in 'Straya and I'm not sure if inflation-related increases are common here and my expectations are too high?

        Depends on the company and your salary to be honest. My company is a scale-up tech company and last year I got a 10% increase which was about $18k, which is a lot. Some people got 2-5%.

        If you're 150k+ you aren't going to be getting 20k pay bumps just because. You'll get that really only by moving to another company.

        Also need to factor in more than just salary. Work/life balance etc. I know people in 200+ and they are miserable

  • pao2x on 28/08/2024 - 15:45

    NSW Hospital medical officers and public nurses and are the worst and 2nd worst paid public health doctors and nurses in Australia.
    They also have the lowest increase lined up with the public sector cap which maxes out @ 4%

  • trapper on 28/08/2024 - 16:18
    +6

    When inflation is low, companies are quick to offer CPI-linked increases.

    But when inflation spikes, those same increases are suddenly off the table, and it's all about 'difficult times.'

  • Drakesy on 28/08/2024 - 16:28
    +1

    I'm $6k (3%) behind with my inflation adjusted income after 3 years.

    HOW GOOD ARE SUB PAR PAYRISES!

    • brendanm on 28/08/2024 - 16:53
      +1

      How good is poor government economic management.

      • Drakesy on 28/08/2024 - 17:10

        Yeah, and that.
        Supreme gaslighting
        "I'm not spending too much, you're the problem, you're spending too much"

  • JimmyF on 28/08/2024 - 18:46

    PS this is my first job in 'Straya and I'm not sure if inflation-related increases are common here and my expectations are too high?

    What country did you work in before?

    Every year our company gives a raise that is more or less in line with inflation.

    Was this the Australian company?

  • freefall101 on 28/08/2024 - 18:57
    +3

    Have you had any promotion, change in job description or anything like that the past 4 years? If you were to leave, could they just replace you with someone else on the same salary as you're on now?

    Considering how bad inflation has been, 4% isn't the worst and is probably what most people are dealing with thanks to the last 2 years. Software dev wages are stagnating hard after having a boom time as well, all the big companies are scaling back on anything that's not AI, thinking nVidia will write their code for them soon enough.

    I'd look around though, why not? They owe you market wages, you owe them your services. If that has become unbalanced then it seems the right time to jump ship.

  • MelbEng on 28/08/2024 - 19:11
    -7

    The simple answer is no; wages should not raise with inflation. Especially when inflation is high. If they did, then it would cause a spiral that would drive up inflation even further. Secondly, put yourself in the shoes of a business owner. With costs going up everywhere and income more than likely dropping; where do they find the money for wage increases?

    • Gdsamp on 28/08/2024 - 20:01
      +5

      The simple answer is no; corporate profits should not rise with inflation. Especially when inflation is high. If they did, it could exacerbate economic inequality and decrease overall economic stability. Consider the perspective of the general public. With everyday expenses climbing and wages often not keeping pace, how fair is it for corporations to increase their profit margins? When businesses prioritise profit over equitable economic growth, it can lead to a cycle of reduced consumer spending and increased economic hardship for the majority.

  • p1 ama on 28/08/2024 - 20:57
    +2

    Now the company I'm working for is small, software isn't their main business, and there isn't a clear career development path. While its a good gig where I learn a lot, my new skills don't translate to a higher salary and this frustrates me. I'll be forced to look for a new job soon if I want to progress in my career and salary.

    You're not being "forced" to look for a new job - the default (if you want to progress your career and salary) should always be looking for the next opportunity. That's not to say that progressing one's career and salary is the end goal for everyone, but if it is for you, this is the only way.

    There is no loyalty involved - the relationship between employer and employee is a purely business relationship where an employer is incentivised to pay an employee as little as possible, and it is incumbent upon the employee to seek out employers who are willing to pay them more. Obviously there are other factors, e.g. what work you will be doing, work-life balance, the relationship with your colleagues…etc.

  • gee-man on 29/08/2024 - 09:06

    The best way to increase your wage is to switch jobs, and to focus your learning & skill development on making yourself easy to hire.

    Working at the same place for 10 years hoping for an inflation-raise every year, vs skipping every 2-3 years and getting 10-20% more, there's no question which is the better play.

  • 2esc on 29/08/2024 - 09:12
    +1

    How does your salary actually compare to similar roles?

    A lot of companies/industries pay doesnt keep up with inflation jobs especially that are in the 50,000 to 80,000 a year range seem to suffer this. That one reason the cap between lower and higher incomes is widening.

    • salmon123 on 29/08/2024 - 20:35

      A lot of companies/industries pay doesnt keep up with inflation jobs especially that are in the 50,000 to 80,000 a year range seem to suffer this

      It's not just the 50k-80k jobs … People in the 100k-1m also suffer this phenomena (although they are better placed to wear it).

      Not many companies (or governments) can afford to increase their payroll spend by 10% when inflation is running at 10%. Take a look at what pay increases teachers, health care workers and other people on awards got in the past 12-24 months. I didn't check it, but I can guarantee it's not 10%.

  • Luminary on 29/08/2024 - 12:45

    I work in IT albeit in a non-coding role. Base salary increases maybe 3-4% each year and I usually get a 10-15% performance bonus. Earlier this year I asked and got a $20k/~14% base increase as the scope of my role had changed a bit.

  • justworld on 30/08/2024 - 00:37

    I'm self employed and put up my fees 10% this year. Since I started in 2016 my base rate has gone up 94%, so an average of 8.6% per year. Covid inflation has been a really good reason for me to bump my rates up.

    If your clients aren't saying you're too expensive, it means you're not charging enough.

Login or Join to leave a comment
Login Join