Is a 5% raise every year pretty good?

Question

I get a 5% raise every year like clockwork (it's the max at my company). Is this considered good? I also get a little bump in my year-end bonus that translates to about %1 of my overall salary+bonus. Should I be pressing for more?

Answer 1

Compare it to the annual inflation rate. 5% sounds pretty good to me.

Answer 2

It really depends...on what you do for a living. 3 - 5% is standard raise for salary individuals. If you change job's or more responsibilities are added then you would have a case to ask for a raise.

But be careful you have to be prepared for the no. If you do indeed approach you boss for a raise and the answer if no how you react could set you up for a bigger loss in the long run

Remember to always be professional no matter what the answer, and if you want a raise more than the standard be prepared to back it up with quantifiable means to prove that you indeed earned the raise.

Answer 3

5% is 5 cents on the dollar, i.e., if you are making $20 an hour, you would get a raise to $21 an hour. I only get 3% a year and I have been seriously thinking about moving on myself. The perks are nice at times, but for me the forward movement is not. So, if you are happy and the company offers you a chance for advancement than I say go ahead and stick around. Prayers =)

Answer 4

It's very good. Companies that give merit increases usually average between 2% and 3%. The highest I ever received was 6.5%, but I took on a flood of responsibility when they decided not to get rid of the old lady and keep her around practically as a mascot (she was pretty useless, but thought she held the place together).

There are 2080 standard working hours per year. That's a $1k per year raise for every $10 per hour.

Answer 5

5% should be adjusted by inflation a cola clause or the (cost of living increase) should be a guidline. NOT bad as inflation is pegged at 2.3% ytd.

The question is, why is that the max the company allows? If your skills are marketable you should check with your company's competitiors to see if you are being remunerated at an amount commeasureate with your industry for your position.

Always ask for more, if your quiet someone else is not. You miss 100% of the shots you do not take.

Answer 6

Be happy, I've been on staff for 5 years, the last raise I got was 3 years ago for 3%.

You could push for more but the risk in that is you might find yourself on the chopping block when the company gets in the financial issues.

To answer your question, yes 5% is good.

Answer 7

This depends on the rate of price inflation and how your role and responsibilities are changing.

In the UK our rate of inflation is about 2.5% so any raise of less than that means a reduction in spending power. So here a 5% raise I would consider appropriate if one of my team was meeting their objectives and taking on extra responsibilities.

If you have a similar level of infaltion at 6% you are doing more than OK but if you have taken on more responsibility and delivered against it make sure the boss knows. Also consider benchmarking - look at adverts for similar roles to yours if you are in the mid to top range don't push too hard - the boss will not be too worried about finding better pay elsewhere.

Answer 8

Any raise in this economy is good. If you are getting this on an annual basis, I'd say you are doing really well. I'm in a union and I've only been averaging 3% the last couple of years.

Answer 9

I think you're asking the wrong question. You should be asking,

"Am I paid fairly relative to market conditions, my job description, my experience, and the value I am providing?"

If yes, great. If no, you should press for mor or get out.

More specifically to your question, the average raise for non-executives across the US is 3% to 4%. So yes, 5% is fair - as far as averages go. But to me, that is a very small piece of the pie.

Answer 10

In the corporate world, yes, especially given the previous responses. Relatively speaking though, it's amazing how we limit ourselves as to what we can earn and are capable of. I have an entrepeneurial mindset and the sky is the limit. I increase my pay directly by the effort I put in, so 5%, although commendable in the traditional workplace is a drop-in-the-bucket to what I'm able to achieve on my own. So in answer to your question, it is also relative to the type of work you do.

Answer 11

if you're guaranteed a 5% increase every year than be satisfied with that. most people don't even get yearly raises or bonuses so consider yourself lucky in that matter. try pressing for more and you might be out on thestreet looking for new work.