Merit increase at 52k a year?

Question

I read the other email about increase at 10% of course not the standard. what if you're above meeting expecations would 2-3% be the increase? and how do I determine the total increase? my friend is making 52k to 53k what would be her total yearly?

Answer 1

Let's look at it from two sides: the employee's and the owner's.

From the employee's side, they want to meet inflation plus a little something for the effort.  Given a standard 3% for inflation, then the extra experience and knowledge the employee would have may merit 4% total raise on average, with ranges from 2-6%.  If less than 2%, then the employee should be fired.  If the employee is given extra responsibilties, then maybe up to 10-12%.

From the employer's side, I have to look at the market, then temper to my own personal values.  Frankly, if it's a tough year and the company is losing money and the market is not providing for big pay increases for employees in my industry and I am not losing employees, then I have no incentive for paying much, if anything.  It sounds harsh, but that's the free market.

My advice is if you are happy with the deal you are getting, don't sweat the extra 1 or 2% a year.  You'll make it up in multiples by doing your best every day, either at your present company when you are promoted or at your next one where you take all the knowledge you've gained.  If you're not happy, take to the open market.  It's a big world of opportunities.  If you are in a slow industry, get in a fast one, if that's what you want.

If your question is a straight math question, then 2% is 0.02 and you multiply it by the salary (0.02*52000=1040)