| Am
I kidding myself if I expect a 10 percent raise?
Q.
What is the percentage range for raises in public accounting?
Is the average really 4 to 5 percent? If I expect 10 percent, am
I kidding myself?
A.
Companies determine their merit budgets for the coming
year typically by late summer of the previous year. Merit increases
are based on the employer's ability to pay. Given the current economic
situation, some companies have opted not to give merit increases
this year because they can't afford to.
Over
the past four years, the average merit increase has hovered around
4 to 5 percent, so I think it's unrealistic to expect a 10 percent
raise. A raise as high as 10 percent is generally reserved for employees
whose salary is not competitive with the market. A company may also
give an employee a merit increase as part of a promotional increase.
Or, you might expect a 10 percent increase if you have done an exceptional
job during the past year and the company would like to reward you
for your work.
Good
luck.
-
Erisa Ojimba, Certified Compensation Consultant
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