No regular pay rises anymore?

Question

I have worked for my employer for 4 1/2 years, and 2 1/2 years ago I transferred from a small city office to their head office on the outskirts of the city, as a result of the small office closing down. The year after I transferred I was told I was not entitled to a pay rise because I earnt more than my colleagues (we're talking a few hundred pounds, not thousands) as I came from a city office, and therefore earnt more. This year I was given 1% pay rise, whereas everyone else received between 2 - 4%. I have ben told that if they give me any pay rises then I will continue to earn more, which is not fair on them. My argument is that firstly I was not told about this before I transferred, and secondly that my pay rise (or lack of) is being judged solely on my colleagues salaries rather than my work performance (always excellent reviews). While I understand where they are coming from, how does a company expect anyone to be happy with this excuse long-term? Is this really fair? I am starting to feel under-valued and demotivated, and feel I cannot sustain working for a company that is going to use this excuse every year.

Answer 1

It's common for the amount of your raise, if any, to depend on where you currently are in the salary range.  Also, ranges are typically lower in areas with a lower cost of living.  You benefitted from an effective "raise" when you transferred to the new area, with a lower cost of living.

It is of course your right to look for a new job if you feel you can do better elsewhere.

Answer 2

In my own experience you will normally achieve a 10 to 15% pay rise by changing jobs and only 2 to 5 % by staying 'loyal' to one employer.

You can't change jobs every year but it sounds like yours is overdue.

Answer 3

This is very, very similar to my own situation.

I have not had a payrise since March 2006 because apparently, I'm overpaid compared with my colleagues.  My colleagues have received regular increases to the point where they now earn more or less the same as me.

However, I am not overpaid in the slightest.  Compared with the market rate for my role and industry, I receive a very low salary - my employer has managed to keep its salaries low by employing foreigners who are not familiar with UK salaries and therefore were not able to negotiate a better rate for themselves.

I agree that it is completely unfair to base your salary on someone else's.  Okay, it might be fair enough in a company or industry which uses specific bandings or gradings to award pay, but my employer does not and most people's salaries are arbitrary.

Anyway, I have been arguing this point for a whole year now.  I took it to my Account Director, then to his Manager, and then finally to the CEO.  The Account Director and his Manager were the ones that had been arguing that it was fair.  The CEO agreed that it was extremely unfair, but said "What do you want me to do about it?  It isn't fair if I get involved in negotiating your salary and no-one else's."

Therefore, I know that now my only chance of getting a proper salary increase is to leave my current employer.  I'm still weighing up my options - there are a few good reasons why I would like to stay in the long-term due to prospects for career progression - but at the same time, money is important.

But, I completely agree with you - it does make me feel undervalued and demotivated.  For that reason I have started to look for a new job - just looking, not necessarily with a view to definitely leaving - but I posted my CV on Monster and my Line Manager found it as I work in recruitment.  I was honest with her and told her about the salary situation but although she is my Line Manager, she has no budgetary responsibility and therefore cannot agree an increase herself.  She has now agreed to talk to our Manager, but of course the outcome is just going to be the same as before.

So, I would expect for them to continually use that excuse, and you should consider leaving.  It might not be the right way for you to go at this time as I'm not sure that it is for me, but if you can be clear with yourself on your reasons for staying, then that will be your motivation rather than money.

Answer 4

You are not being undervalued. You are in a particular cicumstance where to be fair to the bulk of the staff they have to be less than generous to you. You say that you were not told that the pay would be lower at HO in the outskirts. That may be so but i find it hard to believe that you were not aware of it. Most people have a pretty fair idea of how the pay structures work throughout their companies.

they are not going to use the 'excuse' [it is NOT an excuse, it is a reason] every year, only until your salary is on parity with the HO rate.

You are only seeing this from your own point of view! I cannot blame you for that, but there is another point of view - the other staff members.

Five years ago, the organisation that i work for when taking over work on sub-contract had to take on 2 of the other parties staff and take over their existing employment contracts on the same terms. These 2 people joined a close knit team of 10 and under 'their' contracts, they started off being paid 20% more than the existing team members and got 6 weeks annual leave instead of 4.  This caused quite a lot of bad feeling amongst the existing staff. The 2 new staff members have had their salary pegged since they joined and have not had an increase in 5 years!  they are now on the same rate as the rest of us. The company cannot do anything about the additional holiday allowance.

Have you considered that had you continued reciving a higher salary then your new colleagues may have become the ones feeling undervalued.

Finally, you mention your excellent reviews, perhaps your colleagues also receive excellent reviews and are every bit as smart as you!

ps Migellito - conditions in the private sector are very different from in the public sector!

Answer 5

I'm not sure what employment law says on this matter, but I think that if an employee is forced to relocate the employer must offer some compensation to offset any costs (such as rehousing or extra transport costs) to the employee.

I work in the public sector and if my post becomes redundant and I am offered a new post at a lower grade then my salary is frozen until the new salary 'catches up'. This may be a condition negotiated by the unions. I would advise you to see a solicitor if the the loss of earnings is enough to warrant it.

Answer 6

pay rise what is that

i haven't had a pay rise in 10 years