Difficult conversation with boss, what to say?

[katmarie]

I've just seen my pay award for this year. After a difficult year, where my appraisal was excellent, i've worked bloody hard, and at times I was the only member of the team, I've been given a payrise which doesn't even come close to inflation. To add insult, in % terms, newer members of the team have been given a higher % because they are on a lower rate, and the award has been applied as a flat cash amount across the board.

I'm really fed up, and at some point this afternoon my boss is going to ring me to tell me the wonderful news about my pay award. What on earth to say? At the moment I'm leaning towards 'thanks very much' and not engaging on it further. And starting the job hunt. But I'm wondering if its worth trying to negotiate? My bottom line is I am prepared to move job, but I need to find the right job first. So I'm wary of putting myself in a difficult position.

This is really current where I work. In simple terms, we have a pay pot and that is divided up depending on performance rating.

The pot is smaller this year than in previous years, so improved performance this year on last year has seen some with less of an increase.

Hard to swallow. My advice is to carefully and professionally voice your disappointment. Yes, it might be time to look elsewhere, but if your boss knows this, would they counter offer? It's such buoyant market, in some roles you can name your price. I did in exactly the same circumstances.

Can you not express how disappointed you are and request a rethink without threatening to leave?
And then if they’re not prepared to change their minds start seeing what else is available?

Yes I think you can, if they are open to that conversation and see where that goes. The risk is that you are mention that you open to moving on if they have no wiggle room on your increase. Then see what they say but prepared to do it.
I'd explore your options anyway, it gives you more bargaining power, if they want to keep you.

I expect it was not your boss who decided that there would be flat rate increases. Express disappointment that it is less than inflation. Ask if it can be reconsidered.

I am not sure threatening to leave is the right thing to do, as if you are unsuccessful in getting anything, it looks hollow. If you really want to stay if it can be resolved, the time may be once you have something else you can go to.

Since you're ready to leave anyway, you've absolutely nothing to lose by having the "I deserve more" conversation.

"I'm really disappointed. I have made a huge contribution this past year and hoped it would be recognised and rewarded."

When he calls, you can either respond with the above. Or, just say "Oh dear, that's not what I hoped to hear. I'll have to email you about this." Then email it to him.

I've been in a similar situation recently. The three approaches I took were:

1. can you confirm that the pay rise fairly correlates with my performance grade/outcome and is not just an arbitrary figure applied across the board?
2. can you confirm new salary is in line with my same grade colleagues (I know it's not and my colleagues also happen to be male)
3. pay rise seems to be aligned with new starters; I am not a new starter as I have c9 years experience in the company therefore is this reasonable?

My originally pay offer is currently being re-reviewed.

I feel your pain.
Paraphrasing what happened at my last appraisal...

You're an asset to the company and we can't do without you
Me: are we getting a payrise?
You had one 3 years ago and you are above minimum wage
Me: OK what else do I need to do to earn a payrise?
Nothing, whatever you do or how much profit I make no one is getting anything BUT we are looking to review in 2029

I no longer work there

Well I had the discussion with him, he called me two minutes before my finish time, but never mind. He told me what I was getting, I said ok, thanks. He asked me if I was happy as I didn't seem too pleased. I said that if I was honest, I was disappointed that the pay award didn't even meet inflation, and that given my performance over the year, I felt that this wasn't a reflection of the value I brought to the company. It was a slightly longer discussion, and I had my facts and figures to hand of what I've achieved etc, so I evidenced everything. But the upshot of it was that it's a like it or lump it offer.

He tried to tell me my award was one of the highest, but it wasn't, it was the same as everyone else in cash terms, a smaller overall percentage increase than some other more recent recruits (people I trained no less) got as well. He also tried to suggest that there might be promotion opportunities in the future, but that's been said before and not come to pass. So I left it as saying that I was grateful for the pay rise, it all helps after all, but that I am left feeling under valued as a result, and that I wasn't going to pretend that I was thrilled when I believe my work and performance is worth more.

So we're at an impasse. And I'm looking for other roles. I'm gutted though, I love this job, and the people I work with. I would literally be moving for the money.

Good for your for standing up for yourself.
Do you feel the company could afford to pay you more and are just not choosing to do so? Or are they having to be careful??

Applying for jobs might be the way forward. Find something you fancy, better pay and conditions, be honest about your reasons for looking elsewhere and hopefully they will end up matching your pay

It sounds like your boss didn’t have room to manoeuvre. And tried to bullshit you to get you too accept it. I’ve been in this position and had to tell my team they were all getting a flat % regardless of their performance rating. I was annoyed and argued against it, but I was honest with my team and the following year they got a more appropriate rate. Unfortunately we lost people who exercised their right to get a better paid role.
If we want to keep the best people the company has to reward them appropriately. Once people start looking at other jobs they are unlikely to stay even if given a spot bonus or an additional under the table pay rise. Sensible companies understand this.

I would just move. For some strange reason, companies don't value their current staff at the same rate as new hires, despite the cost of recruitment is eye-watering compared to paying current staff what they're worth.

I have recently handed in my notice due to pay, and was given a counter offer, but even if I had accepted, I wouldn't have the extra 2 days holiday, the higher oensuon package, the bonus scheme, etc etc. I start my new job in a few weeks.

I was in a similar position at my last job, at the time of the salary reviews we had recently been taken over by a huge American company and they valued us less than our previous company. I got a £1k payrise on a £40k salary.

My line manager called me and he knew it was a disappointing amount… I said that I was disappointed but also grateful that I still had a job during covid and hadn’t been furloughed, so I was looking at the bigger picture. My boss completely understood and must have done some negotiations as a few months later the rise was increased by another £2k.

So I think your approach is correct - showing diplomatic disappointment and setting out your case for more money, with some job hunting too. Good luck!

It depends where you work but did your boss actually decide your pay award? We just get a straight percentage, higher if rated as exceptional performance but that's rare. I don't decide my team's pay increases and I know by boss doesn't decide mine - it's organisational. Which is still disappointing, but harder to take personally.