Money To Live

October 17, 2011

Financial planning – should you count on a raise?

Filed under: career,earn more — by moneytolive @ 3:00 pm

I’ve had two jobs with amazing raise/promotion potential. At one, I was told, "You’ll be making five times your current salary in 3 years." Three months later the company imploded. At the other, I was told, "You’ll get a $20k raise each year." Less than 6 months later, there were layoffs.

I’m skeptical about promised raises.

Several months ago my husband came home with information about his possible raises in fall 2011. His manager said he’d most likely be in a certain band, so we had a good idea of what type of raise/bonus he’d get. Should the projections be factored into future financial plans?

I did factor the raise and bonus into our finances, and what do you know … the bonus was cut in half. His manager’s prediction was right on target, but the bonus was reduced because R had only been on the job for half the year. The raise was exactly as predicted. I reread the raise/bonus information sheet, and sure enough, in tiny print at the end there was a statement that compensation increases may be prorated.

While R was a little disappointed by the smaller bonus, I was mostly amused. Once again, predictions of bonuses and raises do not pan out.

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