I just got a promotion. Should I have gotten a larger raise?

March 15, 2014 8:18 AM

I work for a local small business. I was just promoted from Assistant Store Manager to Store Manager. The raise that was proposed to me was less than I thought it would be. Is there a standard or accepted percentage?

I work for a local small business. I was just promoted from Assistant Store Manager to Store Manager. The raise that was proposed to me was 1 dollar above my current rate. I think that this is disproportionate to my increase in responsiblilities and would like to negotiate for better compensation.

The small business is a multi million dollar business. The department that I now run is a million dollar retail store. I realize that there are a lot of variables, but is there an accepted or standard percentage that one should "expect"? I do get paid commission as well. I was thinking of asking for a higher hourly rate and potentially an incentive bonus of some kind. The department was down 5 percent last year and I was thinking of a bonus for every percentage point of growth (i don't know how much that would be).

Thank you in advance

posted by kbbbo to Work & Money (7 answers total)

While there's no standard, there's also a pretty important principle at stake- when negotiating, never take the first offer. I'd ask them if they can do any better, and point out that the market rate for the position is $XXX.XX. You should be earning more than market rate, anyway, as you don't need training and already know their business. It's useful to have a salary survey for your industry, so you can evaluate comparable rates.

This doesn't mean you'll necessarily get market rate- they may be too small to afford it- but if you don't ask, you won't get.
posted by jenkinsEar at 8:31 AM on March 15, 2014 [2 favorites]

Is there a standard or accepted percentage?

Yes. From your employer's perspective, your correct compensation is the lower of the following two numbers:

1. The cost to retain you as an employee.
2. The cost to hire a new employee and train them to take your position.

Note that employer size is irrelevant. The way to negotiate salary is to make the cost of 1) high. If 2) is low in your area, it doesn't matter what your responsibilities are, you won't get a raise.
posted by saeculorum at 8:52 AM on March 15, 2014 [2 favorites]

On one hand, the standard you should be paid is about what store managers for similarly sized stores would make. On the other hand, if your salary is below-market, your store is making the bet that you would be less likely to leave due to inertia, even if it risks having to replace you with someone at a higher salary if you left, because they figure it is unlikely that you would do so.

My advice would be to see what the pay is for comparable jobs and then after having a successful 6-12 months in your position, as for a raise at market rates or above. If that doesn't work out, apply for those other comparable jobs using your current title and track record as a springboard.
posted by deanc at 8:53 AM on March 15, 2014

The raise that was proposed to me was less than I thought it would be.
What were you expecting, and what did you base that expectation on?
posted by sm1tten at 9:13 AM on March 15, 2014

The raise that was proposed to me was less than I thought it would be.

The department was down 5 percent last year

High raises and low performance don't go together.
posted by NotMyselfRightNow at 9:35 AM on March 15, 2014

And, do you get a COLA (cost of living adjustment?) each year?My method, which is not verified in any way: I'd look at COLA and your base salary to see what you would get for a simple COLA adjustment each year at your old position. If you do not get one, and your raise is about COLA then you should definitely ask for more.

A dollar raise at 40 hours a week is about a 1,000 dollar raise. If there is an increase in benefits as well, make sure to take that into consideration.

A google search should be able to tell you a range of what people in your industry are getting on average. Where do you fall into that category? If it is on the low end, of course ask for more.

If this is your first managerial role, even if they will not budge it will help to stay in that position for at least a year to get the experience you need to move elsewhere if the pay is too low.
posted by AlexiaSky at 3:49 PM on March 15, 2014

Late to the thread, but I know a couple of people who gave up manager positions because they were expected to work much unpaid overtime. Management does not get overtime pay; these "promotions" were simply cost saving for the companies.
If you feel you are under paid , and there is not chance of renegotiating your salary, you might make it clear that you will work no more than 8 hours a day, and no weekends.
posted by Cranberry at 2:12 AM on March 16, 2014