Wednesday, July 08, 2009

My Salary History (%)

Inspired by FMF

Year 1: I got my first job out of school. I made several mistakes. I first suggested a salary range and then I didn't negotiate above what was offered. Later I found out that I could have easily made 6% more starting.

Year 2: 8.5% increase, but since I made a mistake starting out, others in my job may have started here.

Year 3: Job change. 7% increase. Didn't negotiate this amount.

Year 4: Promotion, 13% increase. Year end raise, 8%.

Year 5: Market adjustment, 7%. Promotion, 15%. Year end raise, 5%.

Year 6: Promotion, 6%.

Year 6.5: Job change, 20%.

Year 5 was a big year for me. By this time, I had learned that I was paid much much less that I was worth. I asked my boss for more money and he said he would see what he could do. I would ask for the status of the request every so often. Finally about 6 months after my initial request, I got a 7% raise (during that time period I actually got my year end raise, but I was still below market even with that 8% increase).

This year, I was promoted, but I got a very small pay increase, once again putting my below market range for my position. I believe that is the major reason I was able to negotiate such a large salary increase in this tough economic times. There was also one extenuating circumstance that caused the company to give me a bonus, worth about 5%.

What I've learned from this - do good work, ensure you have a strong reputation, research what the market is paying, and don't be afraid to ask. If you don't ask, no one is going to hand things over to you.

I was promoted several times which contributed greatly to my salary growth. Without those promotions, there is no way I'd be making what I am today.


Ben Courtney @ ACE Financial Services said...

Well, at least you're into a steady pace of progress. I've got some friends who are having a hard time on negotiating with their bosses for a salary increase. And besides, the past economic climate might have hindered more increases in their salary.

free financial freedom said...

It depends when you're asked. If you're asked to list your salary history when applying for a job and you're concerned that it could knock you out of contention for the position, what you might want to do instead is to include a salary range rather than a specific amount. For example, you could say "My salary range is from $40,000 - $50,000."