Feeling worthy in asking for salary increase

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ClarkeKent
ClarkeKent Posts: 336 Forumite
edited 21 August 2016 at 4:47PM in Employment, jobseeking & training
I have come out of a prolonged career in supermarket retail where I was on a static £15k income for many years doing an admin job. So in a way I have been programmed into a mindset of low wages and getting paid any more than that is not something I deserve.

I work in the North of England and recently started as a trainee software engineer on £16k a year. It has been tough and I have struggled through, I think my company has probably made a loss with the income of jobs I have done by perhaps £3-£4k but I am learning and getting more skills. Even though I am billed out at £30 p/h

It is review time, I feel to ask more to perhaps £18k is pushing it a bit, but this may have been programmed into me during my supermarket environment where everyone is on minimum wage. But I know fellow software engineers in my office are on £22k-£27k and they do get billed out at £40 an hour.

So really just your thoughts on whether I should be asking for more and really any thoughts on moving from a low paid sector to a higher paid sector.

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  • TBagpuss
    TBagpuss Posts: 11,205 Forumite
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    How long have you been there, and how do your skills compare to those of other employees?

    If you are a trainee, do you have a formal training program with regular reviews?

    If you don't have formal reviews, I'd suggest that you ask your line manager / supervisor for a review meeting. Ask them for feedback abut the progress they think you are making, what they see as being areas where you are doing well and where you need more work, and then raise the issue of your salary.Ask about pay reviews - if you have only just got to a point where the company s breaking even / making a profit based on your work then it may be a bit early to ask for a pay rise, but you an ask to agree a specific date for a pay review, and perhaps to define some specific targets / goals for you to achieve in order to qualify for a pay rise.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • ClarkeKent
    ClarkeKent Posts: 336 Forumite
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    TBagpuss wrote: »
    How long have you been there, and how do your skills compare to those of other employees?

    If you are a trainee, do you have a formal training program with regular reviews?

    If you don't have formal reviews, I'd suggest that you ask your line manager / supervisor for a review meeting. Ask them for feedback abut the progress they think you are making, what they see as being areas where you are doing well and where you need more work, and then raise the issue of your salary.Ask about pay reviews - if you have only just got to a point where the company s breaking even / making a profit based on your work then it may be a bit early to ask for a pay rise, but you an ask to agree a specific date for a pay review, and perhaps to define some specific targets / goals for you to achieve in order to qualify for a pay rise.

    Been there a year, skills run short compared to what the other guys can do. No format training program or review or even a formal contract, just a "learn it yourself" approach with Google, online training etc and with experience of jobs.
  • tacpot12
    tacpot12 Posts: 8,021 Forumite
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    Even a small rise is worth having and if you do ask, you don't get. They probably can't afford to pay you £18k yet but an extra £500 a year would be a 3% pay rise which is ok.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • theoretica
    theoretica Posts: 12,328 Forumite
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    Don't calculate your worth to the company just through the amount of your time which is billed - probably you are doing things which free up the higher paid members of staff to spend more of their time on billed projects.

    As well as simply a pay rise, look at any courses you might want to be sent on, or qualifications you want help to get, and how those skills would help the company too.

    One opening for a discussion which covers both skills and pay and how to get to where the more senior designers are is 'I would like to discuss my career progression'.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • ClarkeKent
    ClarkeKent Posts: 336 Forumite
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    theoretica wrote: »
    Don't calculate your worth to the company just through the amount of your time which is billed - probably you are doing things which free up the higher paid members of staff to spend more of their time on billed projects.

    This is so true, and a great point to raise in a review. Thanks
  • GothicStirling
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    Are those people earning 22-27k graduates?
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
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    At your review, ask your manager what you need to do secure a payrise.
    "You were only supposed to blow the bl**dy doors off!!"
  • Expat2016
    Expat2016 Posts: 24 Forumite
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    I would second the course advice. Another option I would take would be to freelance on the side.. Sign up with somewhere like People Per Hour and advertise any services you can offer. I use the site all the time to get small jobs done like web development and logo design.
  • Snakey
    Snakey Posts: 1,174 Forumite
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    Rule of thumb with hourly charge-out rates in my line of work is that the money a person brings in should cover 3x their salary (a third for them, a third for office costs, a third for profit).

    Assuming that's the same for you - and 1,500 hours of your time would be £48k, which is 3x what they're paying you, so I'm probably there or thereabouts - the way to justify a pay rise is therefore to increase your billable hours, increase your recovery rates (if you are in a service line where "COR x hours worked" is the starting point for raising a fee rather than the be all and end all), or increase your COR.

    In order to increase your COR you will have to convince them that the market will bear the cost i.e. that your work is of a standard to be worth £40 an hour to your clients rather than your current £30.

    If you are still learning, and not bringing in enough to cover your costs, then a pay rise would eat into their profits and it's down to them whether they want to invest in you. If you're doing so badly that you're not even covering your own costs plus your share of the office costs, you should probably forget it for now - concentrate on getting better, and ask them what you can do to help you improve faster.
  • daytona0
    daytona0 Posts: 2,358 Forumite
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    You say you are on 16k a year and want to push for 18k.

    16k is about a £1163 take home per month

    18k is about a £1277 per month

    Ok so I'm on board with that :) If it was only £50 or something I'd be inclined to think what is the point?

    Then again you do need to ask at some point so that you can push for more increases in the future. So why not have a chat with them? If you do your job as good as everyone else then you are entitled to ask. And also, keep your eyes peeled for better jobs! You have relevant experience now and you could probably walk into a 22k job at this moment in time.

    Supermarkets and jobs like that are factories. Everything is set, right down to when you go the toilet! Totally different culture and once you've adjusted it will be fine.

    Source for figures: http://www.netsalarycalculator.co.uk/16000-after-tax/
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