Author Topic: 6-month salary increases  (Read 4611 times)

mmta1234

  • 5 O'Clock Shadow
  • *
  • Posts: 22
  • Location: Midwest
6-month salary increases
« on: December 10, 2014, 12:05:01 PM »
I have a job offer that offers salary increases every 6 months for the first 3 years of employment. For those of you familiar with this incentive structure, what is a typical raise in terms of percentage of base salary?

Note: The offer is 57k as an entry level Software Dev in the Midwest.
« Last Edit: December 10, 2014, 12:07:35 PM by mmta1234 »

pzxc

  • Stubble
  • **
  • Posts: 196
Re: 6-month salary increases
« Reply #1 on: December 10, 2014, 12:21:11 PM »
You'd have to ask them -- it could be anywhere from 0.0000001% to 10000000%

There is no "typical" for something like this.  Even if 99% of companies gave X% raise under this structure, your employer could easily be completely different.  There is no correlation.  Even if you get someone to give you a "typical" number it will only mislead you.

Rage

  • Stubble
  • **
  • Posts: 147
  • Location: SoLoNoCo (aka Longmont)
  • Eat the Horses
Re: 6-month salary increases
« Reply #2 on: December 10, 2014, 12:41:35 PM »
Yeah, I've never heard of this.  I've also never heard of software development in the midwest :P

I really don't consider myself cynical in general, but I've worked for 5 companies now, and I always felt like they were doing everything they could to pay me as little as possible while acting like they were trying to pay me as much as possible and trying to get me to work as many hours as possible.

Examples:
"our annual pay adjustment will be delayed 3 months this year due to [something stupid]" - but there would be something stupid every year and the next year's adjustment was one year after the previous year's
"We do our pay raises and bonuses based on your rating, but we have rules that only 5% of employees can get a 5 (highest rating), and only 10% can get a 4, blah blah blah, no pay raise for you"
"This year's bonus or pay raise will be smaller despite record profits because of [stupid reason that wouldn't convince the most gullible person that ever lived]"

Without fail, once I have been at a company for 3 or 4 years my salary is at least 10% below the going rate, usually 20%. 

What I'm saying is this sounds like bullshit.  We give you a shit starting salary but we'll give you an unspecified pay raise every 6 months.  What's that line from Jerry Macquire, I can never remember it?  Someone please help me.

mmta1234

  • 5 O'Clock Shadow
  • *
  • Posts: 22
  • Location: Midwest
Re: 6-month salary increases
« Reply #3 on: December 10, 2014, 12:47:17 PM »
Yeah, I've never heard of this.  ...

That's an interesting perspective and, seeing as how this is my first offer, one I need to hear. Would you be less cynical if the 6-month increases (albeit without an actual number) were included in the job offer letter ?
« Last Edit: December 10, 2014, 12:49:55 PM by mmta1234 »

Rage

  • Stubble
  • **
  • Posts: 147
  • Location: SoLoNoCo (aka Longmont)
  • Eat the Horses
Re: 6-month salary increases
« Reply #4 on: December 10, 2014, 12:56:04 PM »
That's an interesting perspective and, seeing as how this is my first offer, one I need to hear. Would you be less cynical if the 6-month increases (albeit without actual number) were included in the job offer letter ?

It sounds a little similar to something I've seen with some consulting-type companies, where you work for them for a year at a lower-than-market salary while they train the heck out of you, and then decide at the end of the year whether or not to hire you for what is implied to be a much much higher salary.

Certainly in writing is better.  To me it sounds fishy.  If you get offers from other companies you can compare.  If this company wants to pressure you to say yes very soon, you should say no.  I would say that an offer for, say $70K seems a lot better than $57K with implied pay raises.

Donovan

  • Stubble
  • **
  • Posts: 185
  • Location: Indiana
Re: 6-month salary increases
« Reply #5 on: December 10, 2014, 12:56:44 PM »
Yeah, I've never heard of this.  I've also never heard of software development in the midwest :P

Hey, I work at a company that calls itself "The Google of the Midwest" and I wouldn't move to some Silicon Valley giant for just about any reason.  We even have a rock climbing wall in the gym (although no slides or company bikes).  Plenty is going on over here.

As for the actual thread, I would go with ignoring that incentive and evaluating the job based on other merits (location, reputation of company, reviews of leadership, base compensation vs other possible employers) and consider the fact that you probably don't have to wait a year for your first raise as a probably bonus.

mmta1234

  • 5 O'Clock Shadow
  • *
  • Posts: 22
  • Location: Midwest
Re: 6-month salary increases
« Reply #6 on: December 10, 2014, 01:03:10 PM »
I would say that an offer for, say $70K seems a lot better than $57K with implied pay raises.

I agree - we're in the negotiation phase now.

Tyler

  • Handlebar Stache
  • *****
  • Posts: 1174
Re: 6-month salary increases
« Reply #7 on: December 10, 2014, 01:06:57 PM »
IMHO, if the original salary is fair then take it.  If not, ask for more money.  Don't be distracted by the promise of unspecified raises that may never materialize.

thd7t

  • Handlebar Stache
  • *****
  • Posts: 1348
Re: 6-month salary increases
« Reply #8 on: December 10, 2014, 01:16:23 PM »
IMHO, if the original salary is fair then take it.  If not, ask for more money.  Don't be distracted by the promise of unspecified raises that may never materialize.
Or have them specify the raises.  At least the first raise.  Until then, you're sort of getting to know each other, but knowing where you're going will help you.

NathanP

  • Stubble
  • **
  • Posts: 137
Re: 6-month salary increases
« Reply #9 on: December 10, 2014, 01:46:41 PM »
I worked for a defense contractor in the southeast that did this exact thing. For the first 3 years you were evaluated and given a salary increase every 6 months. This program was only for graduates right out of school.

I think that the logic behind this is that high performers quickly move into the upper pay bands for your level while low performers are stuck near their starting salary. I accepted the job for other reasons, but did appreciate receiving those early salary adjustments!

Edit, in my case the 6-month pay adjustments were roughly equal to the company-wide annual increases. So, new-grad salaries grew at 2x everyone else while in those first 3 years.
« Last Edit: December 10, 2014, 01:50:18 PM by NathanP »

aschmidt2930

  • Bristles
  • ***
  • Posts: 272
Re: 6-month salary increases
« Reply #10 on: December 10, 2014, 08:52:10 PM »
Yeah, I've never heard of this.  I've also never heard of software development in the midwest :P

I really don't consider myself cynical in general, but I've worked for 5 companies now, and I always felt like they were doing everything they could to pay me as little as possible while acting like they were trying to pay me as much as possible and trying to get me to work as many hours as possible.

Examples:
"our annual pay adjustment will be delayed 3 months this year due to [something stupid]" - but there would be something stupid every year and the next year's adjustment was one year after the previous year's
"We do our pay raises and bonuses based on your rating, but we have rules that only 5% of employees can get a 5 (highest rating), and only 10% can get a 4, blah blah blah, no pay raise for you"
"This year's bonus or pay raise will be smaller despite record profits because of [stupid reason that wouldn't convince the most gullible person that ever lived]"

Without fail, once I have been at a company for 3 or 4 years my salary is at least 10% below the going rate, usually 20%. 

What I'm saying is this sounds like bullshit.  We give you a shit starting salary but we'll give you an unspecified pay raise every 6 months.  What's that line from Jerry Macquire, I can never remember it?  Someone please help me.

There's actually a huge amount of tech jobs moving to the Midwest.  Wind energy for data centers, cheaper COL, ect. The Cali reign of tech jobs is nearing it's end.

To the OP, this is anyone's guess.  The odds are you won't catch up to market value if you don't start at it though.