my boss says I do great work but won’t give me a raise after 3 years

by Alison Green on October 31, 2024

A reader writes:

I’m early in my career but have been in my current organization (10,000+ employees) for over three years. I was hired in a two-person “department,” where I am an individual contributor reporting directly to the department director. Since I started in this position, my manager (George) and I have had conversations about the “unique structure” of our department and how that would provide me with freedom and flexibility to shape the scope of the role as my skills and experiences expand.

I realized within the first six months of this role that “unique structure” was code for “never getting a promotion.” There are no positions between myself and George (whereas other departments have multiple individual contributors, managers, senior managers, and directors) and I have no peers in my department. While it’s true that my role has expanded in scope over the years, my compensation hasn’t changed. Whenever I try to bring this up with George, he gives vague answers about “the budget being tight” but emphasizes how much he depends on me and how he’s glad to have me as his “right hand.”

Throughout my three years, George has alluded to possible raises and promotions that never end up happening. There was the promise to create a new supervisory position for me that fell through without any further explanation. When finally hired a new member of our department, George started a months-long unexpected leave a week after the new hire started. I covered many of George’s essential duties during his leave while also training and supervising the new hire, although that was never formally recognized. When that new hire left within her first year because she was being underpaid, I became the formal supervisor of her replacement with no change to my title nor compensation. I accepted each of these supervisory opportunities (in addition to the increasing scope of my other projects) with an optimism that I would be rewarded eventually, but my boss kept coming back to the same excuses whenever I mentioned I felt I deserved a compensation increase.

In an effort to not sound greedy, I would phrase these compensation discussions as “looking for formal growth opportunities,” but I did once flat-out ask for a raise once George returned from leave. He initially denied my request, citing the apparent “tight budget,” but emphasized that everyone with whom I worked gave me glowing reviews of my coverage of his work. A few days later, he claimed he “hassled HR” and they “reluctantly” let him give me a one-year retention bonus that amounted to about 5% of my gross salary. I was to receive the lump sum immediately but would be required to pay the organization back if I were to leave the role within the year. This felt insulting. I accepted the bonus and started looking for a new job, figuring I could negotiate the bonus repayment into a new salary once I got an offer with a salary increase.

I have gone through a couple sprints of aggressively applying to jobs over the past year but nothing has panned out. Now, a few months after the year-long retention period, I’m still working here and feel like I’m being exploited.

My first question: am I actually being exploited? It’s easy to feel that way since I’m young and naïve about how these things work, but every seasoned professional I’ve talked to insists that continuing to go above and beyond will pay off in the end, even if it hasn’t just yet. I am less inclined to believe that that’s true now in the same way it was when my parents were young professionals; it feels like I just keep meeting increasingly challenging expectations and given the same excuses.

My second question: what leverage do I have to demand a raise? I don’t have a job offer to use as negotiation with my current employer, nor do I have an income source should I decide to leave this job out of principle. I know making an empty threat to leave the company will destroy any future bargaining power I might have, but I’ve also been job hunting for over a year with no luck. I don’t want to be financially stagnant until I can find a new position if I don’t have to be.

Is this worth having any sort of conversation with my boss right now, and what should my ask be? Or should I just be grateful to have a job when so many knowledge workers are unemployed right now?

Yes, I think you’re being exploited. You’ve been working for three years with no raise (just one paltry “retention bonus” that isn’t even actually a raise), despite your responsibilities increasing significantly, including new managerial responsibilities. Your boss calls you his “right hand” but isn’t willing to back that up with money. He’s promised promotions and raises that have never materialized. At this point, you’re being paid less in real money than when you started (because of inflation) while doing more work and having significantly increased your value.

It’s true that going above and beyond can pay off — at workplaces and with managers who recognize it that way. But once your workplace and/or manager demonstrates that they don’t respond that way, it’s in your interests to recognize that and go somewhere that will. The time to start expecting that recognition was about one year in, and the time to get very concerned that it wasn’t coming was after you started managing a whole other employee without being compensated for it. At this point, three years in, they’re just taking advantage of you.

As for what leverage you have to push for a raise … let’s find out. Any sensible manager knows that when someone asks for a raise, they risk losing that person to better opportunities if they turn them down. Your boss may be less convinced of that than we want him to be because you’ve hung around this long … but “you’ve hung around this long” can also be used to your advantage, by highlighting that you’ve been patient but that now the situation has become unsustainable.

Say this to him: “I’ve been here three years with no raise, despite my responsibilities increasing significantly during that time, including taking on a management role with no additional compensation. At this point I’m earning less in real dollars than when I started, due to inflation, but doing a lot more. You’ve alluded several times to me deserving a raise, but I haven’t had one. I’d like to stay here and continue growing, but I do need my compensation to reflect my contributions.”

He’ll reply with something about the budget being tight, to which you should respond, “My understanding of that is why I’ve waited three years, but at this point I do need my salary to reflect the work I’m doing.” Then stop talking.

You’re not making explicit threats to leave here, but if George has any sense at all, he’ll understand that he’s risking that.

If he comes back with another “retention bonus,” push back: “I’m asking for an increase to my base salary that’s commensurate with the work I’ve taken on.”

But even if they do give you a raise, you should keep job-searching. This is a place that will only compensate you fairly if you push and push and push (and even then, any raise they offer will probably be lower than what you’ve actually earned). Your underpaid coworker had the right idea when she left. And there’s a built-in ceiling on what you can do in your small department anyway.

Normally I’d recommend looking at internal transfers as one way get out from under this boss — but first I’d want to know whether under-market pay is an org-wide issue or not. (Your boss definitely wants you to believe it is … but talk to people on other teams to test that.) If it’s org-wide, you’re better off going somewhere else altogether.

Also — it is not greedy to ask for a raise that reflects your value. Please disabuse yourself of that line of thinking. It’s to your employer’s advantage for you to believe that, and it’s bullshit. We work for money, and we deserve to be paid fairly for our labor, which means increased pay as our value to an employer increases.

You may also like:
{ 114 comments }

{ 114 comments… read them below or add one }

  1. ThursdaysGeek*

    Please keep looking, read AAM for resume and interview guidance, and then give us an update when you’re in a better place.

    Reply ↓
    1. Jellyfish Catcher*

      Came to second this, including AAM guidance tools.
      You’re MUCH more valuable than they are paying you.

      Reply ↓
      1. Sloanicota*

        Yeah, OP is well positioned to be one of those people who comes back and says they got a 50% payraise with their next job. It happens, OP! Believe it and go out and get it! (probably not here under this boss).

        Reply ↓
  2. I should really pick a name*

    I don’t have a job offer to use as negotiation with my current employer

    Even if you did, I’d say you should take the job offer no matter what your current company offers. If it was this much of a fight for one raise, what would it be like for the next one?

    Reply ↓
    1. Observer*

      I agree. Do not try to negotiate once you have a better offer. Just give your notice and go. Even if they come up with a raise.

      Reply ↓
    2. Momma Bear*

      Agreed. Get out of this company.

      I bet you paid significant taxes on that bonus so it was even less than the 5% you cited (unless that was post-tax). I had that happen to me once – while it was nice to be appreciated, it didn’t become part of my base salary and didn’t actually amount to much.

      Reply ↓
      1. ThatGirl*

        Bonuses don’t actually get taxed at higher rates, it just can seem that way when it’s a big lump sum. It would still be counted as regular income for the year.

        That said, I agree that a one-time retention bonus isn’t worth much and either this company, your manager or both really suck.

        Reply ↓
        1. Lisa*

          Yes, this. Withholding for bonuses is often at a higher rate to avoid under-withholding, but it just counts as any other wage income when you actually do your taxes.

          Reply ↓
        2. DJ Hymnotic*

          IDK how OP’s employer works but my most recent one (of a similar size to LW’s) automatically withheld taxes on our bonuses at a rate significantly higher than what our tax bracket would be. And while I fully believe in paying the taxes I’m supposed to pay, having my employer unilaterally decide to withhold more definitely made the bonuses feel less celebratory.

          I concur with everyone else advising LW to find greener pastures if they can. I’m not quite as anti-counteroffer as Alison is, but “the budget being too tight” for three years as more and more responsibilities are heaped upon LW’s shoulders sounds like a culture and/or systemic problem that a counteroffer by itself can’t fix. Would love to hear an update from LW if they feel so inclined.

          Reply ↓
          1. note reg w/h*

            Just a quick note that if you are in the US, your employer likely isn’t making a unilateral decision about what to withhold. The IRS requires 22% withholding on supplemental payments for 2024, which bonuses typically fall under if they aren’t part of your regular pay. And each state has their own rules about state withholding on bonuses as well, in addition to the fed withholding.

            Reply ↓
          3. Bee*

            About a third of my income is commission, and tax is withheld at the highest rate possible per federal law, but when I do my tax return it corrects to my actual tax bracket based on my total income and I get at least $1k in my refund. (This is why bonuses at the end of the year are better than at the beginning of the year – you’ll see that return much sooner! It’s also why I’m always excited to do my taxes, lol.)

            Reply ↓
    3. Sloanicota*

      Yeah to be honest I don’t foresee much luck with OP just trying to pressure their current boss; I think you have your answer from them – they’ll be happy to keeping adding responsibilities forever at the exact same, or essentially the same, rate of pay. Put all the energy you have into job searching. Take a week off and spend it job searching. Put out feelings to your network.

      Reply ↓
  3. Stuart Foote*

    There is a possibility that everything will work out and you will get a raise, but that rarely happens in my experience. Yes, you are being exploited. No, you are not realistically getting a raise. Your only realistic option is to find another job. No, you do not have any leverage whatsoever unless you actually have the ability to get another job.

    The good news is every month you work you gain experience that makes you more attractive to other employers, so your chances of getting another job rise every day. Also, if workers you have a good relationship leave your current company, keep in touch with them! Odds are good they can at least help you get your foot in the door elsewhere (or even hire you themselves). Also let your friends and family know you are looking–many people like being able to help and maybe get a referral bonus from their employer. Good luck–I have been there and it absolutely sucks to work hard and not get rewarded.

    Reply ↓
    1. Sloanicota*

      My take on the maybe-myth that it’s a good professional practice to “do the job before you get the job” (definitely something I was taught when entering the workforce) or “give 110 per cent and go beyond your position” (not something I ever subscribed to) is that if it’s going to work, it’s going to work in under a year, probably more like six months. If after six months you haven’t seen strong indications that it’s working for you, you’re not in one of those situations. Weirdly, they did not tell me that part out loud when I started out.

      Reply ↓
  4. learnedthehardway*

    You’ve been there 3 years, your responsibilities have increased, your mandate now includes managerial responsibilities. They should be paying you according to the value you bring, and you’re bringing a lot more value than when you started.

    I think it is time to start job hunting. This company / manager doesn’t seem serious about providing career growth in a meaningful way (as in promotions and compensation).

    Reply ↓
    1. Jessie Spano*

      “I have gone through a couple sprints of aggressively applying to jobs over the past year but nothing has panned out” – OP

      Reply ↓
      1. MassMatt*

        OP should stop sprinting and consider it a priority until achieved, don’t do just an unsustainable burst over a couple weeks but keep at it until it’s done. A marathon (if need be) and not a sprint. I know it’s hard, job hunting is awful, but it’s imperative in this case.

        Reply ↓
  5. A Book about Metals*

    At a 10,000 person company how many levels of management does George have to go through to get you a raise? It’s possible you may have to enlist help above him or more likely keep searching – it seems this place is just stingy

    Reply ↓
    1. Jellyfish Catcher*

      The only way is to either move away from your manager or, more likely, move from this stingy company. You’ve lost 2 years of extra pay!
      You’re competent with managerial ability and experience; another company will be happy to snap you up. Research what that level of fair pay would be, so you can negotiate a reasonable starting salary with the new place.
      AAM has all sorts of info on how to effectively to that.
      You can do this!

      Reply ↓
    2. Paint N Drip*

      I’d love to hear Alison’s thoughts on this. Is it crazy for OP to go to their grand-boss or right to HR? Is it George holding things back or ACTUALLY the company’s fiscal situation? (Uncharitably I wonder if their little department has a budget of X so the larger piece of the pie that OP gets, the less for George’s salary or pet projects)

      Reply ↓
      1. Dawn*

        After three years I don’t think OP would have anything to lose going above George’s head, so long as it’s handled correctly.

        It does have to be handled with some care, but I have to assume that OP has connections with people above George if they spent some time doing George’s job when he went on leave.

        Reply ↓
        1. Sloanicota*

          I’d rather see OP look into networking within the company to get a better position that’s not under George, rather than leveraging that network to try to get George to budge.

          Reply ↓
          1. Dawn*

            If George may have been withholding raises in a way that’s legitimately against policy, it’s worth delicately floating the topic to see what you might learn.

            And anyway, why not both? This isn’t a zero-sum game.

            Reply ↓
            1. HonorBox*

              I think inquiring with HR about how salary increases are generally handled would be well worth it. I can’t imagine a 10,000 person company not giving any sort of wage adjustments during a three-year tenure at the company. It might not be a huge sum, but some sort of regular salary increase seems reasonable to expect.

              Reply ↓
    3. Another Kristin*

      A 10,000 person company should have a yearly compensation review process with a basic cost-of-living raise plus additional merit-based increases. Unless George has done some kind of complicated end-run around the company’s standard HR, it’s very likely that the company is just very badly run and/or relies on exploiting its workforce.

      Reply ↓
      1. ThatGirl*

        Yeah, it’s wild to me to imagine an org that huge that doesn’t give annual reviews and raises, even if they’re a little paltry.

        Reply ↓
    4. Sheworkshardforthemoney*

      Or George doesn’t want to lose his golden goose. He has a hard worker who goes above and beyond for a pittance. I will bet real money that when, not if the OP leaves it will take 2 people to replace her.

      Reply ↓
    5. Not Tom, Just Petty*

      The only point of contact OP has at this time is George. I think OP would benefit from a talk with HR of a 10000 person company about annual reviews and bonuses. This is absurd to me. I work for a 2000 person company. If my review hasn’t happened on the date of my anniversary, my boss is getting a message that her boss got from her boss. How is this person running a rogue department. Does OP have the title he thinks he has or is it some administrative title. I’d dig deeper to see who the hell the company says I am and why they are not looking out for him.

      Reply ↓
  6. Miss Pickles the cat*

    I am so confused as to why an organization of 10,000+ employees doesn’t have a formal review/raise cycle for all of their employees. Most companies of that size typically have a formal cycle; its not a small company. Are they really not giving raises to all of those people on a regular basis? What is their turnover, and how do they hire new people? If I were you, I would definitely keep looking for another job. You seem to have gotten good experience, showed growth, and the bar seems relatively low for a job that is better.

    Reply ↓
    1. Alton Brown's Evil Twin*

      Excellent points.

      OP, have you talked to others in the company in your age/experience bracket about any of this?

      Reply ↓
    2. Observer*

      I am so confused as to why an organization of 10,000+ employees doesn’t have a formal review/raise cycle for all of their employees.

      You don’t know that it actually doesn’t. Because the problem here is that it’s possible that George is not playing it straight with the LW. In fact, I would say that whether there is a process or not, it’s highly likely that George is not playing it straight.

      Which Alison’s advice to see what’s happening in other parts of the organization is sound.

      If I were you, I would definitely keep looking for another job.

      Agreed 100%!!

      Reply ↓
      2. My Useless Two Cents*

        I’m definitely falling into the George is not playing it straight crowd. If anything I’d say George’s behavior is downright fishy. 1) Never trust a manager that promises but never delivers raises/promotions. 2) He hired someone to help cover the work knowing he’d be gone for months but never informed, prepared, or compensated OP accordingly. Unless it was it was an unexpected emergency leave but he should have been bending over backward once he got back to make up for all the extra work piled on OP if that was the case.

        While reading the letter, I was thinking stingy boss. And there isn’t a lot you can do about a stingy boss. But the comments reminded me that this is a large company and there are probably practices in place for COLA or to at least keep pay competitive. Heck, my boss is pretty stingy but even he explains if he is not giving out token raises in a given year (and not just vague budget concern explanations).

        At this point, I wouldn’t trust George and I would avoid any more one-on-one conversations and put everything in writing. I’d try emailing George, with a little CC to HR, listing the additional tasks and responsibilities, a mention that you’ve had no raise in 3 years, and ask that your pay be re-evaluated given the expanded scope of the job.

        Reply ↓
    3. Smithy*

      In my experience, when you’re on a super small team – no matter what formal structures exist for the larger organization – they can easily not apply to you.

      Having been the junior staff member on a two-person team, the HR challenge is usually not so much making the case to promote someone but rather making the case to create new positions on the team. So if you’re on a team with a Director and Associate, whether the promotion would be to Sr. Associate or Manager – the Director is in a case of pitching that the team now warrants that role, and then once that role is created – making the promotion case. And on a smaller team, where just about any change seems more significant based on the team’s size, this can both be harder and also have a Director less experienced with making those asks than a Director managing a larger team.

      I say all of this by way of saying the OP should 100% keep looking to leave. In my experience, my supervisor was ultimately very bad at communicating the reality that no matter how good I was doing, the size of our team at X employer was never going to grow at a pace to acknowledge me appropriately. It’s not that my supervisor was terrible overall, but this was a unique and significant weakness.

      Reply ↓
      1. Miss Pickles the cat*

        Its not really the promotion part that concerns me, it’s that they haven’t gotten any raise at all in 3 years. Some companies its hard to get promotions just because of how their pyramid reporting structure is set up. I’ve been at the same company for over 10 years; I’ve gotten reviews/raises every year. I’ve gotten new roles, but they’ve all been lateral moves to different departments (and all had accompanying raises). I’m a mid range level, and its one of those companies where the # of employees at the level above me is much smaller than the # at my level. Also, TBH, I don’t really care so much about moving up a level.

        Reply ↓
        1. Miss Pickles the cat*

          My current company is around 20,000, and is currently in review season with much correspondence about due dates for various tasks in the review system. My last company was less than 500 people, and they had regular reviews and raises. It was more painful to keep track of, just because they used your hire date as the review timeframe instead of just doing everyone at once.

          Reply ↓
      2. Sloanicota*

        Yeah OP has no idea how their role/performance is being communicated to others. In my experience, George is taking all the credit for the department and positioning OP as their assistant. Hate to by cynical but …

        Reply ↓
    4. Another Kristin*

      Yeah, just posted this in another thread! It’s very, very weird for a company with this kind of headcount not to give regular COL + merit pay increases. Either the company just super sucks or George is doing something shady.

      Reply ↓
  7. Dawn*

    LW, expand your job search. At this point you should take anything (fair and reasonable) that will get you out of there. If you’ve been searching for over a year, there’s something else going on there; for starters, use the guides available here to revamp your resume and cover letter.

    You may also be searching in too narrow a field, or conversely and somewhat ironically, applying too much. You reference “bursts of aggressive job searching” – you’ll have a lot more luck if you’re picky about the positions you’re applying to, and then take the time to tailor your application materials to that position. I don’t know what you mean by “aggressive job searching” but if it looks anything like resume-bombing, you’re hurting your chances by doing that.

    Still, though, I think you need to do whatever you have to in order to get away from George; he’s obviously already warped your norms about what fair compensation for your work looks like and continues to take advantage of your (apparently) patient nature.

    Reply ↓
    1. GammaGirl1908*

      Agreed. I suspect LW is getting exasperated and applying to 20 jobs in 2 weeks, getting distracted for a few weeks, then doing it again. S/he would be better served by applying to 1-2 very carefully selected jobs a week every week.

      I cannot stress this enough: it is NOT greedy to expect to be paid for working, AND paid fairly for your value. Greed is selfishly demanding more than you’ve earned and taking an excess of what’s available. Your value has nothing to do with how much money you need to live or what you were paid in other situations. It has to do with what you are providing for the organization.

      Anyway, get out. If this is what you have to do to get your first raise, imagine what you’ll have to do for the next one.

      Reply ↓
    2. Sloanicota*

      Agree. OP I suggest taking a week off and spending it job searching. If you can, maybe go somewhere pleasant, whether that’s a nice resort with a pool or a cabin in the woods (that has Wifi). Get someone you trust to look over your materials. Read the AAM guidelines and take them seriously. Aim to apply to 5+ jobs a day before you kick it at the pool / hike in the afternoon – and then maybe another 5.

      Reply ↓
  8. Goldenrod*

    I can soooo relate to this! I’m a staff person at a large university where this sort of thing is basic operating procedure. I’ve moved jobs within the university many, many times and that is really the only reason I’ve gotten significant raises over the years.

    And these aren’t internal transfers – you have to apply and interview for these “promotions.” The good thing is, you get to keep your benefits so I guess it’s a transfer in that sense.

    I massively agree with this part of Alison’s response:
    “But even if they do give you a raise, you should keep job-searching. This is a place that will only compensate you fairly if you push and push and push (and even then, any raise they offer will probably be lower than what you’ve actually earned).”

    I got a retention raise at one point, but it was still lower than what I had hoped for. I would strongly encourage you to apply for new jobs until you finally reach a place where you are being fairly compensated. Which will happen….good luck! Keep us posted. :)

    Reply ↓
  9. Timothy*

    Once again, for the people coming in late ..

    > .. it is not greedy to ask for a raise that reflects your value.

    Brand new employees have virtually no value. They have some skills, but don’t know much about the company’s culture, customers, goals, processes, etc.

    Experienced employees have lots of value, especially if they’ve been praised about doing great work. Two words: Pay me.

    Reply ↓
  10. Emm*

    Is George a first time manager? Is the issue here that he does not know how to navigate the system in his organization and can’t effectively advocate for OP?

    Reply ↓
    1. OhGee*

      When I was a new manager, I *prioritized* getting my staff appropriate salary and promotions. George has had three years to figure this out.

      Reply ↓
    2. Good Lord Ratty*

      After three years of managing, it’s laughable to suggest he’s in any new. That might have been an acceptable excuse in his first year, but after that it’s really not.

      Reply ↓
  11. Snarkus Aurelius*

    There’s a sneaky caveat that comes with the “going above and beyond will pay off” advice: **to a limited point!* Of course employers like to tout that carrot as if it’s just around the corner. Sometimes it is, but sometimes it’s not as in your case.

    Yes, you’re being exploited. You watched an employee leave because of low pay, and you still stayed. George saw you do that. So you either pull back on your roles and responsibilities or get an increase. Then go watch the scene in Office Space where Peter explains to the Bobs why he doesn’t work that hard.

    I’m reminded of a great meme: my employer pays me just enough so I don’t leave, and I work just enough so I don’t get fired.

    Reply ↓
    1. Adds*

      +1!
      My husband went “above and beyond” for 2+ years at his last job and all of those things just became expected of him like they were a part of his job that he was being paid for. They were not. He was doing a sys admin job for help desk pay. And when he asked for a raise (and to be paid the rest of his yearly bonus since they had only paid him half) he was told he could have his bonus, but he needed to demonstrate his value for a raise by going “above and beyond.”

      He works for himself now in a completely different field.

      Reply ↓
    2. Sloanicota*

      Yeah, sadly I do think there’s an effect where “my brilliant rock star employee is still here even though I know they think they’re underpaid” leads to taking that employee for granted or assuming they’re stuck with you because they’re not so in-demand, meaning maybe they’re not so brilliant. Humans aren’t very good at valuing things and tend to defer to *other people’s* estimations of their value. George may well not be noticing all the good work you’re doing any more.

      Reply ↓
    3. Elbe*

      Hard work can pay off, if you’re at a decent company who values its employees.

      It’s not at all naive to go a little above and beyond at a new job in the hope that you’ll be recognized for your efforts, but the trick is to be able to identify when your efforts are not being properly rewarded.

      Reply ↓
  12. Goddess47*

    That size of a company has a decent sized HR. At the very least there should be yearly cost-of-living raises (even if it’s below the COL!).

    At the very least, you should ask a ‘clarifying’ question to HR: “What is the process for raises and promotions within the company and how do I know when I am able to receive anything?” I’d be interested in hearing what they tell you.

    Sorry, but I’m suspecting you’ll need to find a new job for a raise…

    Good luck!

    Reply ↓
    1. Caramel & Cheddar*

      Yes, this! This is a company with 10,000 people. George says “budgets are tight” but there’s no way that the budget is so tight that a raise for the LW isn’t a rounding error on a rounding error in the grand scheme of the company’s revenue. Go to HR, because this is fishy.

      Reply ↓
    2. pally*

      This! Ask HR about the policy for raises -both COL and for merit. And find out who determines what their reports receive in the way of raises.

      I have a sneaking suspicion that George has been awarding himself 100% of the funds allotted to his dept for annual raises. I’ve seen it happen.

      The OP didn’t state it, but why isn’t George complaining about a lack of raises for himself?

      Reply ↓
    3. Grumpy Elder Millennial*

      I like this. You want to know process and what kinds of things they want to see to support that process. A very reasonable request! So if anyone freaks out about it, that’s a big red flag.

      Reply ↓
  13. squeeb*

    I’ve been wondering what the “normal” rate of salary increases is these days. Do employers do annual cost-of-living adjustments more frequently? My employer has a waiting period for new hires so I’m going to have to wait for almost two full years before my salary has a chance of being increased at all :-/

    Reply ↓
    1. Dawn*

      In, I think, a majority of companies, salary raises are tied to annual performance evaluations. But there’s also a not-insignificant subset which require you to ask for one.

      But it is fairly typical that you can’t receive a raise within your first year, and that in your second year you’ll be waiting for your company’s review cycle. That’s unfortunate when you come in near the start of a cycle like you did, but it’s fairly normal.

      Reply ↓
      2. ThatGirl*

        Waiting for a raise within the first year has not been the case anywhere I’ve worked. I’ve gotten smaller merit increases due to starting closer to the end of a calendar year, but everywhere I’ve worked as a FTE, I’ve had a review toward the end of a year/beginning of a new one, with a merit increase paired with/tied to my performance review in the early to late Spring. Raises have ranged from 2.5% to 5%. I’ve also gotten a couple off-cycle raises for various reasons.

        Reply ↓
      3. squeeb*

        Thanks for replying! I guess I’m thinking of the instant wage-compression that could happen with this type of cut-off date. If Employee A starts right before the magic date, and Employee B starts right after, their salaries will permanently be X% apart after 1 year (all other things being equal). This seems unfair and problematic to me in terms of long-term equity among employees over time.

        Reply ↓
        1. Dawn*

          It is, you’re not wrong! But corporate environments in particular frequently are unfair (and particularly in certain branches of those corporations, like, for example, retail or customer service positions).

          It’s short-sighted, but they make one policy and it applies across the board, or at least under a certain level it does. You and I both know there’s lots of problems with that, but presumably we also both know that “fair” and “unproblematic” and “corporation” so rarely belong together in the same sentence.

          Reply ↓
    2. Caramel & Cheddar*

      It really depends on the employer, but having to wait two years for any kind of adjustment seems like too much. I assume in your workplace you have to wait a year before you’re allowed to have a COLA, but the last one came towards the end of your first year so you were ineligible and now have to wait almost another full year?

      In a round and perfect world, my workplace would do raises every year. I work in non-profits, so that’s not always feasible in leaner years. We never do cost-of-living adjustments because that seems like something they’d have to commit to annually since the cost of living always needs adjusting. Our raises are allegedly based on merit, though I’m pretty sure everyone gets one and I would not call them especially generous.

      Reply ↓
    3. Busy Middle Manager*

      BLS/Bureau of Labor Statistics publishes this info every month. Google for “Employment Cost Index” report

      They break it down by different groups but to use the largest “private industry” one:

      “Wages and salaries increased 3.8 percent for the 12-month period
      ending in September 2024 and increased 4.5 percent in September 2023. The cost of benefits increased 3.3 percent for the 12-month period ending in September 2024 and increased 3.9 percent in September 2023. Inflation-adjusted (constant dollar) wages and salaries increased 1.2 percent for the 12 months ending September 2024”

      This has been politicized/been a hot topic in the past and on social media because many people are complaining they get no raises, wages aren’t keeping up with the cost of living, and others are saying that that’s a right wing talking point.

      To answer this question for yourself (the truth is “partially true” IMO), google “employee cost index for wages and salaries, by occupational group.”)

      It’s not a stark trend, but it is a trend, that the %-change-per-3-month-wages has been a bit higher for traditionally lower wage industries. Finance/insurance have some periods with zero wage growth, transportation has steady high growth, according to this report

      Reply ↓
    4. Sillysaurus*

      We have annual merit pay increases (about 2-4%) and my organization also frequently does market rate reviews and then will adjust the salary for everyone with a certain job title.

      So, I’ve been at my job 3.5 years and have had 6 pay bumps, 1 tied to a promotion and the others a combination of market rate/merit. In total the salary increases have equaled about $40k.

      Reply ↓
    5. Mid*

      I work in the legal industry, so it’s very standard (even at small firms) to have annual reviews and then get raises (and sometimes bonuses) at that time. I would say average performers at big firms tend to get between 2-4% raises, and above average performers tend to get 5+%, but it varies greatly. In my time, I’ve tended to get at least 3% per year, between small and large firms, and then bonuses that equaled anywhere from 1-5% of my annual salary, twice a year (annual review and end of year.) The raises seem to be around the average for non-attorney staff at law firms, but bonuses are all over the place. Some firms only give bonuses to billable employees (so attorneys and paralegals), and some give bonuses to all staff. (Also you typically have to be in a role for a full year before a review cycle, though sometimes you can get a review if you have been in a role for 10-11 months. I was hired at my current role 3 months before their review cycle, so I won’t get a raise until 15 months in my role, though if the firm did a company wide raise or a salary band adjustment for my role, I would get that.)

      It should also be noted that the cost of living in my area is rapidly increasing, and so a 3% or even a 5% annual raise is functionally still a loss of pay every year. It’s my understanding that most employers for salaried/white collar jobs in my area are giving a 3% raise to everyone annually right now, at minimum, to try to retain employees, because there are also a lot of open positions in my area, so it’s not hard to find a new position that pays better. (I base this off of friends in many different industries in my area, but don’t have actual data to back it up.)

      Reply ↓
  15. Festively Dressed Earl*

    You’re being exploited. I don’t think I’m second or even thirding that; at this point I’m dozeningth that. In addition to asking for a raise, I’d start asking for professional development opportunities that will allow you to network. (I’m assuming that you’ve already applied Alison’s advice to your resume and job search, since you knew to write AAM in the first place.)

    Reply ↓
  16. blupuck*

    I am guessing the large company provides funds almost every budget cycle for raises and such.
    Being a two person department, George gets to allocate those funds. I bet he has gotten raises a plenty. Raises with money that should have been allocated to you.

    At least talk to HR about the issue. Talk to coworkers in other groups. This looks bad.

    Reply ↓
    1. Choggy*

      GREAT point about how George is probably funneling the funds for raises into his own pocket. I’ve already said this, but it’s worth saying again, George sucks!

      Reply ↓
    2. GammaGirl1908*

      Oh god that is upsetting. I just envisioned George saying to himself, “Well, they’ve only allocated our team $5,000 for raises this year. If I give LW a raise, that only leaves $4,500 for me, and THAT’S not going to work. Oh, my, this budget is tight. I guess we can’t afford a raise for her,” and going on his merry way. >:(

      Reply ↓
    3. A Book about Metals*

      Even if that’s what’s happening, at a 10,000 person company there has to be someone else (or multiple people) either above George, in finance, etc signing off on that. If there is, they’re doing a terrible job, if not, that’s also a red flag.

      Reply ↓
  17. Former Retail Lifer*

    “Every seasoned professional I’ve talked to insists that continuing to go above and beyond will pay off in the end, even if it hasn’t just yet.”

    Every seasoned professional should know this isn’t the case. Either your company recognizes and rewards hard work or it takes advantage of you. You’ve made it clear you’re looking for growth opportunities and a raise and there’s always an excuse why it can’t happen.

    Look, I’ve been there, done that, went above and beyond for absolutely nothing, then moved on. I did eventually find a company that treated me well, and you will, too. The job market is tough but please start looking. They’re going to do this to you forever.

    Reply ↓
    2. Sillysaurus*

      Yep. I worked so, so hard at my previous job for absolutely no benefit. I got a new job, and was promoted in less than a year. When I got that promotion, the leadership team specifically cited how much I’d gone above and beyond. In the wrong workplace, your effort is meaningless, and you’re just wearing yourself down for no reason. It’s so frustrating! The answer is to leave.

      Reply ↓
  18. Choggy*

    George sucks, take your experience and put it to use elsewhere they know and reward what you bring to the organization. Have you looked internally to other departments where the structure would offer you opportunities to advance? George isn’t going to help here, so do whatever you can to help yourself!

    Reply ↓
  19. Jackie Daytona, Regular Human Bartender*

    “it is not greedy to ask for a raise that reflects your value”

    100%.

    The organization is the one being greedy, exploiting you for whatever they can get away with.

    Reply ↓
  20. dulcinea47*

    Please also disabuse yourself of the idea that working harder will lead to a reward. that’s just not how life works. It usually just gets you more work.

    Reply ↓
    1. Sheworkshardforthemoney*

      Yep, fill 5 buckets on sand on Monday, the expectation is that you can fill 6 buckets on Tuesday.

      Reply ↓
  21. ReallyBadPerson*

    So, in effect, you’re being paid less and less each year, while doing more work. I’d leave. Even if you have to make a lateral move somewhere, you are almost certainly going to have more growth opportunities than you do at this company.

    Reply ↓
  22. Hannah Lee*

    LW, you’re part of a very small department that is part of a 10,000 person organization.
    The co-workers you interact with, in and outside of your department, all give you glowing reviews, think highly of your work. You’ve taken on more responsibilities, covered for George in his absence.

    You are absolutely being exploited at this point. George knows he’s got a good thing, he papers over your lack of advancement, promotions, raises, recognition with … words. Blab blah blah he went to bat for you, he hassled someone, but – shrug – oh well, things are tight, but you work in a super special department with a super special structure and get tons of flexibility, so it’s all good, right? blah blah blah. I can guarantee you he’s getting his regular bonuses and raises, but he’s not doing a thing for you, either helping you advance or getting you a pay raise.

    My advice would be to look around in the company for opportunities to get out from under George. He’s giving lip service to appreciating you, but is not inclined to back it up with a promotion or raise. He’s a stopper for your career advancement, and is taking advantage of you. People around you appreciate your good work and you’ve outgrown your role there in that tiny group of two and you’re not going to gain anything by staying, aside from more empty gestures and building resentment.

    I can guarantee there are other managers in your company, and other departments who would love to have you working with them. It’s a 10,000 person company, there are probably a dozen lateral moves and just as many step up positions you’d be qualified for, and ones that might be a stretch but since you’re a known quantity, people might be willing to have you step in. Start putting your feelers out today… you’ve got no peers in your department, but are there peers in other groups you can start asking around to? Or other managers? No one will bat an eye at you looking around after 3 years! In fact, I’m betting several will say “Oh, thank god, finally! we’ve been wondering why you’ve stuck with him this long”

    Why look for an internal transfer instead of job hunting elsewhere? You get to keep your length of service, current vesting, PTO accrual and other things tied to length of service. It can enhance your resume for future jobs to show the stability of one company over a series of different jobs (the employer values you enough to keep you on). It’s an easier lift … you’re already a known quantity there, and you already know the lay of the land, key players, key information sources and can gather intel on managers, groups, positions informally.
    Heck, if there’s a group you enjoy collaborating with, even a casual “Hey, if anything ever opens up in your department, I’d love the chance to come work with you” after at the end of some work discussion could lead to them or someone else reaching out to you.

    You can start an external job search at the same time, the resume polishing, thinking about your desired next career steps, salary research will support both.

    Also, as an aside, one other thing I’ll mention since you’re early in your career (and especially if you’re a woman). I have seen *multiple* cases where a male manager has a right-hand employee who is young, highly capable and hard working and he latches on to her, leads her on with ‘you’re so special, you’re might right hand, can’t do it without you’ while NOT compensating her fairly while NOT concerning himself with her career path and absolutely exploiting her for as long as she will stand for it … because why would he do otherwise when he’s got a highly trained go getter who makes his life easier, does things just how he likes them and boosts his rep where he works (because she makes him look good). I would not be surprised if he’s shot down opportunities for advancement for you already. And unfortunately, the longer you stay working 1 – 1 for him, the more risk that other managers will not even think to approach you because it seems like you two are in some work-partnership thing. (not an affair, just something that works for the two of you) Some of my friends and I, who have all at one time or another been that junior woman working for a George, used to joke about is how we were foolishly “loyal as a bird dog” and didn’t even think to look around for other opportunities at work. I’ve got one friend who, unfortunately, is on year 15+ with her George … still waiting on her big raise, her stock grants … that have been just out of reach for years. Don’t be her. 3 + years is plenty.

    Reply ↓
    1. GammaGirl1908*

      This too. George likes LW right where she is.

      However, you’d think he’d pay her accordingly to keep her happy.

      Reply ↓
  23. MassMatt*

    LW, I know it’s easy for someone not depending on the paycheck to say “Quit now” and that’s not helpful, but I hope you will make getting a new and better job your #1 priority. The lack of compensation increase can hinder your lifetime earnings considerably because so many companies base their offers on your current pay–they shouldn’t (and avoid letting them frame it that way, if possible) but they do. These “retention bonuses” are not increasing your salary.

    Consider the cost of staying is not simply being underpaid now, and not even just your future compensation: Your sense of what is normal is being warped by this crappy job/boss.

    When (not if) you get a new job, give your boss 2 weeks notice (and no more, unless your area or field makes longer notice customary) and do NOT believe him when he says “I was about to get you a big raise” (because he probably will). Two years too late!

    Don’t entertain a counter-offer, it will undoubtedly mean you will get nothing more for years (“because we already gave you a big raise”), and you will be put at the top of the list for any layoffs.

    I’m surprised an org of 10,000 employees has no process for regular salary reviews, or if they do, he is able to ignore them. I am thinking he has his own little fiefdom and has little oversight.

    Reply ↓
  24. pally*

    OP: George is playing you.
    He has you going above and beyond. So he looks good. Does he talk about his lack of paycheck increases? I’m betting not.

    I bet he’s the one who decides how the annual salary increase funds allotted in the budget are to be spent. And he’s opted to award all of it to himself.

    Reply ↓
  26. Not a Cat*

    LW, I’m in a very similar situation to yours right now! I’m also early in my career, working as an individual contributor in a small department with no clear steps for advancement, similar tenure, and no sign of a raise despite promises. The only difference is that I’m in a relatively small organization. I tried moving to a different department after asking for a raise/promotion, but I was essentially told they don’t want me to leave this position because they don’t want to hire someone else to fill my role. I fear you might find yourself in a similar situation looking at internal positions. You’re absolutely right to be looking elsewhere. Wishing you the best in your search.

    Reply ↓
  27. Female Engineer*

    I’ve read (probably on this website) people who take on job duties of more than one person are likely to get overlooked for promotions, since manager will now need to hire more than one person to replace you. More likely to happen at crappy organization.

    I also feel it is time to start “working your wage.” No extra hours, no more going above and beyond, etc. Start deferring that extra work to your mgr.

    Reply ↓
    1. Grumpy Elder Millennial*

      I was contemplating giving the same advice in your second paragraph. They’ve “promoted” you in the sense that you have more work and some managerial responsibilities, but that isn’t reflected in your title or pay. So think about going back to the actual scope of work for your position. And definitely don’t accept any more big increases in responsibility without a raise formally in place with all the paperwork signed.

      Of course, acting your wage is potentially risky. George might react poorly. Depending on where you work and the laws there, you could potentially get fired.

      Reply ↓
  28. weelittlemaggie*

    Have you done any salary benchmarking to determine what the market rate is for someone in your role in your field with roughly your amount of experience? If not, I would HIGHLY suggest doing so for a few reasons:
    1. You need to have a firm handle on your goal salary. Don’t let them placate you by giving you, say, a 3% raise if you’re making 10% less than market.
    2. It will light a fire in you to get this sorted, either with George or without him. There will be no question in your mind as to whether you’re being treated fairly.

    Reply ↓
  29. A Better George*

    In some senses, in terms of organizational structure, etc., the LW’s work setup sounds quite a lot like mine – my name is even George!

    But you know what I don’t do? I don’t gaslight my direct report into thinking she’s going to get a raise she’s not going to get. I’m 100% honest with her, I don’t play games, I advocate for her as hard as I can, and when sometimes someone above me in the hierarchy won’t give her the raise or the opportunities she deserves, I feel terrible.

    The George in this letter is a disgrace to Georges everywhere. I’m sorry, LW. I’ll give him a good talking-to at the next George meeting.

    Reply ↓
  30. Almost Empty Nester*

    Taking an internal transfer to another department might get you out from under George’s management, but it will not get your salary caught back up to where it should be. Sadly, except in very rare occasions, you will need to change companies to reset your compensation. Please focus on getting out and finding a better company to work for.

    Reply ↓
    1. Grumpy Elder Millennial*

      Fair points. Though if it’s a relatively streamlined process, shifting to another team could be harm reduction here.

      Reply ↓
  31. Cat Lady in the Mountains*

    FWIW, even if it’s true that “budgets are tight,” budgets are about priorities. If George were really committed to retaining you – or even if he were just committed to ethical management/compensation practices – he could find a way to get you the raise. He’s choosing to spend his department’s budget on other things instead.

    The only exception would be if there’s some kind of company-wise compensation freeze, but presumably you’d either know about that or could easily find out about it from HR or colleagues.

    Reply ↓
  32. HonorBox*

    OP, you are being exploited, underpaid and undervalued. George is not a good manager. Look for other options, which may be outside or may be some type of internal transfer. But in the meantime, cut George out of the middle. Go directly to HR. Ask first how the company handles salary adjustment both annually and when there are additional responsibilities added to a job description. Then listen. Give HR a chance to lay out what you should have been able to expect. Then explain your situation. You’ve not had any sort of salary increase for three years. You got a paltry retention bonus once. You stepped in for George during his absence, and you’re now supervising someone.

    It may very well be that you should have received some sort of annual increase. If so, I’d suggest asking them for that to be made retroactive, because that’s money you should have had in your pocket already.

    Reply ↓
  33. Annie*

    WTF kind of organization with 10,000 employees has no annual pay increases?

    Get out immediately. This guy is a clown.

    Go to HR and ask for their compensation guidelines.

    Reply ↓
  34. Elbe*

    If the LW’s job searching hasn’t panned out because jobs are scarce right now, the LW’s only leverage seems to be the cost the company would have to invest to find and train a new person to take on the LW’s role. But that’s still something.

    Realistically, though, this company sounds like a lost cause. If the company actually is so broke that they can’t give a high performer even a CoL raise, then the LW needs to leave. If the LW is being lied to so that they company can underpay workers, the LW needs to leave. It’s clear that a good, well-paid future is just not in the cards at this company.

    When looking for other jobs in a tight market, the LW should keep in mind that there could actually be a long-term benefit to taking a small step down in title/pay in order to get a foot in the door at a company that does give raises and promotions. There’s a practical cost to in having your wages stagnate, but there’s also an opportunity cost.

    Reply ↓
  35. PX*

    In a company this size, it’s one of the times I’d immediately be consulting an employee handbook, HR policy or having an informal chat with HR.

    The problem here is you are only relying on what your boss says rather than looking around to find corroborating evidence (you’re young but this is an important lesson to learn, some bosses will go the extra mile for you and support you when it comes to raises and performance. Many will not. In those cases, it’s worth educating yourself on what the process for raises ACTUALLY looks like in the company and then seeing if it’s possible to advocate for yourself or be able to call him on his bullshit. Also, talk.to.your.coworkers.about.money!).

    With 10,000 people, I guarantee there is *some* kind of documented structure to how raises are governed and given, you need to find this out so that you can have a direct conversation with your boss *and* HR on how to address this.

    But also, your boss sucks and isn’t going to change and you should definitely keep looking for a new job. And dont be surprised if it turns out he has been lying to you about what raises you were actually eligible for.

    Reply ↓
    1. Ama*

      Yes, I still think OP will be happier if they leave, but at an employer that large I would be really really curious if George is telling the truth about the budget or not. I have known more than one person with a manager who just didn’t want to go to the trouble of putting in a formal request for a raise and tried to blame it on “budget” or “upper management said no.”

      I’ve also known one person whose boss was taking the entire department pool for raises, giving it to herself and then lying to my friend that there was no money for raises (she did eventually get caught, fired, and my friend was given a huge backdated raise and the loophole that allowed the boss to get away with that was closed). George might not be that nefarious but it’s definitely worth doing a little checking.

      Reply ↓
  36. Halloween Blues*

    I was in a similar position in my last job and was finally offered a raise when I told them I had a job offer. I took the job offer anyway because even with a raise, I didn’t see myself being able to grow in that company and expected I’d take on more responsibility without a new job title in the same was you are.

    I’d describe my new job as similar to yours, my manager’s “right hand” however, I’ve had two raises in a year and a half and a promotion in title to “senior right hand” and my manager even encouraged me to apply for a different promotion in another department.

    Even if they give you a raise now, you’ll likely still be waiting another three years for another one and they’ll use this one as an excuse to give you even more work. Best to continue putting your energy into job searching.

    Reply ↓
  37. Parenthesis Guy*

    It would appear that you have minimal leverage. The primary source of leverage is being able to get a different job if necessary. You’ve tried to find jobs elsewhere without success. The only leverage you have is taking tasks off your plate unless you get a raise. That strategy has the potential to get you fired and means that you may not get the opportunities you need to go elsewhere.

    You probably are being exploited and it is usually true that continuing to go above and beyond will pay off in the end. I’m not sure that asking whether you’re being exploited is productive. What you want to figure out is how do you improve or at least change your situation.

    I think you need to try and find a mentor. Your boss mentioned that everyone with whom you work gave glowing reviews of your work. Is there someone above you that you can talk with about your situation and how to better position yourself whether that’s inside the company or for different jobs? Maybe they can give you insight in where you need to improve.

    I’m hoping that you’re not finding much luck in the job market because you’re applying for jobs at too high of a level. That’s something that can be fixed. If not, I think you need to ask yourself whether you’re getting interviews and how far you’re getting in the process. If you’re getting to the final round and it’s just not working, then that’s one thing. If you’re not getting bites though, then that’s a bigger problem.

    Reply ↓
  38. Maude*

    When you leave will they be able to replace you for your current salary? I am guessing not. Unfortunately, many companies are this short sighted.

    Reply ↓
  39. DJ*

    I wondered if this company was govt as pay increases and increments are limited by rules and regulations and this can happen with no pay rise. But doesn’t sound like this is the situation.
    If this practice isn’t widespread within the company I’d suggest trying either for promotion or an in grade transfer to another section where you won’t be exploited and will have promotional opportunities!

    Reply ↓
  40. Ama*

    OP, I was you early in my career. I was at an employer where I was constantly told how much they loved my work and given more and more responsibility and yet somehow that never translated to a promotion (I did get some tiny COL raises every year but only because our larger employer implemented them automatically; I very much believe that if our division head had been in charge of approving those they never would have happened). They strung me along for almost two years promising that they would hire entry level staff to at least alleviate my workload; they dragged out this process for so long that I got fed up, went looking for a new job and gave notice literally the day my boss was going to tell me the job posting for the new staff was going up.

    That new job? I worked there for 11 years, was promoted 4 times (with hefty raises each time), and received not only annual raises but occasional spot bonuses when I had to cover multiple roles due to short staffing. I did leave that job eventually but it wasn’t because I felt I was not fairly compensated. There are employers out there who will recognize that your good work is worth paying for.

    Reply ↓
  41. Colorado*

    Follow Alison’s wording verbatim, then stop talking.
    The last part is the best piece of advice I’ve ever received. It works. Best of luck!

    Reply ↓
  42. Princess Tomato in the Salad Kingdom*

    Since the subject of “going above and beyond” has been coming up so much in the articles I’ve been reading and speaking with other colleagues, it would be great if AAM could address thi very subject. What does it mean? How much is too much?

    Reply ↓
  43. ragazza*

    I once documented all the ways my role had changed and expanded and got something like a 20% raise. But my manager at the time wasn’t an oblivious jerk like this one.

    Reply ↓
  44. Sybil Writes*

    If you are 3 years in at this job and you are not experiencing at least 2 of the following, I’d say it is time to be looking at your next opportunity to grow your career: A) Loving the work B) Beginning to identify growth opportunities in your department or in another one C) Satisfied with compensation (even if not THRILLED, you don’t feel exploited D) feel your manager is a resource for you in some way – they may not be your personal mentor, but they have your back, can provide insight on how to move forward and help you do so.
    I say this from a somewhat cynical point of view: be grateful for your terrible boss – they make it easier to seek a better situation than if they’d been giving you smiles and a 3% raise every year.
    You have what sounds like 3 years’ experience with good performance and increasing responsibilities. You sound like you are enthusiastic about growing even further in your career. Don’t worry about whether you have BEEN exploited (sounds like probably you have); get excited about the next step that is awaiting you. Take the reins in your own hands and find a situation that will work better for you. My hope for you is that you find an organization that will be happy to have you and you will wind up with a significant salary boost as well. Looking forward to your update!

    Reply ↓

Leave a Comment

Before you comment: Please be kind, stay on-topic, and follow the site's commenting rules.
You can report an ad, tech, or typo issue here.

Subscribe to all comments on this post by RSS