Originally posted by: rsd
So my question now is, how have people successfully approached similar situations where they felt they were underpaid? It seems like it is often damned if you do and damned if you don't, and your best option is to look elsewhere to have that as a backup.
I've been through this three times in my career. That is, there were three times when I wasn't getting what I deserved (based on the current market, my abilities, and my responsibilities) and I had to ante up.
The first time was when I was a data entry coordinator looking to get into Help Desk (PC support) back in 1998. The company I was at kept telling me how much they wanted me in HD, but it never happened. The honestly did need several people to increase their staff, but HR was dragging their feet, and the HD manager was such a laid back guy that he wasn't getting anything done about it either. Meanwhile, I've got headhunters calling me, job opportunities knocking, and a great desire to do something more challenging than data entry. So, I handed in my 2 weeks after I found a job and - wouldn't you know it - my current company produced an official offer letter a few days later. I stayed with said company, but it took a lot of ass kicking to get something off the ground.
Fast-forward a few years. I'm now in software development at the same company. I had been brought over from the HD department to do software development, but my salary only bumped by a small amount. It was okay with me at the time because I was getting great experience and the company was giving me something to grow into. Well, after doing this for two years, I had become quite proficient and skilled. It was time to ask for a raise to bring me up to what the market was paying. I was given a small raise and expected to be content. I was not. I found another job and handed in my resignation about a month after the raise. The company immediately presented me with a 10% raise on the spot, with another 10% to come in a year's time. Done deal. I took it. But again, look at what I had to do to "get some respect".
Fast-forward another few years. I'm now at a new company working for the same guy I worked for at the last company. He brought me over to shape things up, bring some fresh skills, etc. In a year's time, I've accomplished quite a bit. My responsibities go far beyond what was outlined in my original job description. I don't mind doing them, but I want recognition (title + pay) for performing them. I went to my boss - with whom I've now had this type of conversation with THREE times throughout my career - and asked for a small promotion and stated (factually) why I thought I deserved it. He blew it off (as he did the previous times) and didn't take it seriously until I handed in my resignation about 2 weeks later. Upon receiving my resignation, he made immediate promises to make some necessary structural changes to the deparment and to promote me.
So in my example, you have an employee and employer who know each other VERY well, and there are STILL rediculous games being played. I've demonstrated throughout my career that when I ask for a raise and state why I deserve it, I mean business. Each time I've done this, I've been willing to back it up by walking out the door. Granted, these last set of promises have yet to come true, which is why I'll likely be leaving shortly, but the fact is that there are employers who may not take you seriously unless you grab them by the earlobes and bury their faces in your bush. I have great respect for the man I work for, but his job is to get the job done as well as possible with the least amount of money as possible. That conflicts with what my goals are: to secure a job with the best compensation possible.
It all just requires the proper perspective and the willingness to play your end of the game. Sometimes you win, sometimes you lose. I'm sure there will come a time in my career when I'll go to my boss and say "I deserve this, this, and this." They'll say "no", I'll resign a few weeks later, and they could just let me walk right out the front door. Of course, that's why you need to have a job lined up: a job you're actually willing to start at when your 2 weeks runs up at your current employer.
Originally posted by: rsd
What I don't get is that it is well known that the related costs to interview/hire/train another person is VERY expensive (often 1-3x the salary of that position), yet companies often don't treat well their most valuable asset (employes..well presumably).
This is because of what I mentioned earlier. Believe me, employers understand these costs... but they're successful more often than not when they call an employee's bluff. Most people who walk into their boss's office and ask for a raise are not willing to find another job if that raise doesn't materialize. Obviously, you don't quit right there... but that negative response should mark the first day of your search for a new job. With most people it's just "oh well... worth a shot".
It SHOULD be "their loss... time to get on Monster.com". When you hand in your notice a short time later, they'll realize you meant business and that you really are as marketable as you claimed. This is something my boss has always had difficulty with. He's kind of old school in that regard. He doesn't realize that the creme of the crop is the creme of the crop for a reason. Every company needs someone from that pool of candidates, and they're hard to find. Each time I've made a decision to find a new job, it's taken no longer than a month or two. This last go around literally took me 7 days. I had 3 interviews and a fourth one lined up. I received offers from all 3 of the companies I met with. Some employers just don't understand that they can't have 100% control of 100% of the situations. They will certainly try, though.
Which brings up another point: if your current work conditions warrant asking for a raise, they probably warrant finding an alternative if it doesn't happen. If you're willing to stay without getting the raise, then you should question whether you really deserve it.