annual salary review-does this entitle you to a raise?

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bb12

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have been in a job for the past 16 months. in my contract it stated that my salary would be reviewed annually...however there has been no sign of any review forthcoming, not even a token inflationary salary raise...have completed some major projects since i've been with the company so my work is definitely up to standard. so just wondering, do i have a right to demand at least a raise to match inflation? and in that case, what would be the percentage to ask for?

i absolutely hate talking about salaries and money with managers and so i want to be armed with an much info as possible before i talk to my manager about this.
 
bb12 said:
have been in a job for the past 16 months. in my contract it stated that my salary would be reviewed annually...however there has been no sign of any review forthcoming, not even a token inflationary salary raise...have completed some major projects since i've been with the company so my work is definitely up to standard. so just wondering, do i have a right to demand at least a raise to match inflation?
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Unless your job is covered by national wage agreements or the like then you are not automatically entitled to a wage increase annually or anything like that.
and in that case, what would be the percentage to ask for?
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Whatever you think you're worth.
 
even though my contract clearly states that my salary will be reviewed each year?

what is the inflation rate at the moment?
 
bb12 said:
even though my contract clearly states that my salary will be reviewed each year?
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Review doesn't necessarily mean increase. If your contract states that you are entitled to a performance appraisal/salary review then you should be getting these and if not you should be asking why not.
what is the inflation rate at the moment?
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Around 5% I think. See www.cso.ie
 
you are entiteld to a review, but as Clubman says this does not mean an increase..genereally speaking however, in a full employment economy that we pretty much have here, then an increase to match inflation should almost be a given (depending of course on the industry you're in)
 
I agree with the last two posters. Also you may not even get a review if you don't ask for one. If you want a raise, ask for more than you want as in general they give you less. In any case if you don't ask you won't get.
 
It seems to me that some companies, perhaps even certain industries, there is a culture of not giving raises, and you can ony assume such companies are not particularly bothered about retaining staff or retaining their skills and experience. Maybe because they can get new staff easilly. These tend to me places that don't train, upskill essentially don't invest in their staff. Places that do invest in their staff, and want to retain staff tend to give raises and annual increments.
 
One of my previous employers used to have annual salary reviews which generally resulted in increases for staff. Then one year people noticed that it was 13 months since the last review and nothing had happened. Then it was 14 months, then 18, then 24. There was always an explainable reason why it hadn't happened.

When the issue was broached directly with management/owner we were told it would happen soon. Eventually the review came through and we were told "Times are hard, the IT market is having problems, yada, yada, you're getting a pay *cut* to help the company survive."

This had a disasterous effect on staff morale and about a year after that more than half of the employees left in a 2 month period and the company lost a huge amount of goodwill and business with customers because they could not carry out contracted work.

Lesson #1 - as an employee, don't assume you will get a review - ask for a firm date when the review will happen. We missed out on increases for a number of years when the industry was not experiencing problems because of this.

Lesson #2 - as an employer, don't think it's worth saving a few % points on the salary by delaying the review process. You may find you end up saving a load of money in the end by not having any staff to pay, but on the flip side you lose income because you don't have staff to do the work for customers.

z
 
ClubMan said:
Around 5% I think. See www.cso.ie
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Looking at the CSO figures, the CPI had inflation at 4.7% for December 2007.

In order for wages to match inflation (obviously, this takes no account of the many many other factors [increased experience in the role, additional benefits from the company, current market conditions, salary for similiar roles, etc. etc.] which must be factored in when reviewing salary) should a person be seeking to have an increase which provides a 4.7% increase in net pay?

I assume this is the case as it's the purchasing power of the net pay which is being reduced by inflation, but something which I've never seen detailed (and have heard a lot of people receiving a 5% gross pay increase say "well at least it's matching inflation").
 
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