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Old 06-04-2018, 09:01 AM
trxlr trxlr is offline
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Default Prorated Performance Raise

I have a question for the AO regarding this situation:

I recently received a promotion and was given a % based raise about a month before my performance evaluation. Given my performance evaluation, I was set to receive an additional X% raise, but have been told that since I recently got promoted I would be receiving a prorated raise of only X%/12 (for the 1 month).

Is this standard? I was told this was an HR rule and my manager was genuinely apologetic regarding the timing.
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Last edited by trxlr; 06-04-2018 at 09:10 AM..
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Old 06-04-2018, 09:04 AM
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Not really following the calcs but doesn't sound standard. Are you saying the because you received a promotion you aren't getting a raise? That def is not standard. If you got some large-fish raise as part of the promotion and then they reduced your performance raise, also not standard IME but if the promo raise was big enough, I can see why they'd feel that was enough.
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Old 06-04-2018, 09:08 AM
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I've experienced this. The large company I worked for early in my career did this all the time. Basically, if you got a raise less than a year after the prior one, it got pro-rated.
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Old 06-04-2018, 09:12 AM
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Quote:
Originally Posted by L. Mo View Post
I've experienced this. The large company I worked for early in my career did this all the time. Basically, if you got a raise less than a year after the prior one, it got pro-rated.
So (and trying to connect to the OP, which I don't think is clear), you could get a 5% raise for your promotion, then one month later a 5% raise for your performance, and the net effect would be that you got 5.4% total raise for the year?

And if I was sitting next to you performing similarly but got my promotion on different timing for whatever reasons, I might get 9.6% in the same situation?
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Old 06-04-2018, 09:13 AM
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Quote:
Originally Posted by Westley View Post
So (and trying to connect to the OP, which I don't think is clear), you could get a 5% raise for your promotion, then one month later a 5% raise for your performance, and the net effect would be that you got 5.4% total raise for the year?

And if I was sitting next to you performing similarly but got my promotion on different timing for whatever reasons, I might get 9.6% in the same situation?
yup.
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Old 06-04-2018, 09:19 AM
trxlr trxlr is offline
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For clarification an example would be:

I received 7% raise for the promotion.
My salary is now 50,000*(1.07) = 53,500

The performance evaluation gave me a 2% raise.
My salary should have been 53,500*(1.02) = 54,570

But, they prorated the raise to be 2%/12 (.16667%)
My salary is now 53,500*(1.0016667) = 53,589.17
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Old 06-04-2018, 09:26 AM
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Quote:
Originally Posted by L. Mo View Post
yup.
I'm glad I don't (and haven't) worked for a company like that. Sounds like HR is running things, but doesn't really have any idea what's going on.
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Old 06-04-2018, 11:03 AM
my_alt my_alt is offline
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I haven't seen that, because that's stupid.

I have seen the annual performance raise be based on the actual salary you earned in the prior year. So if you were promoted in December, your performance raise would be x% * (11/12 * old salary + 1/12 * new salary).

Actually, I take that back. I have kind of seen the first thing done, but for new hires. Someone who was supposed to get a 5% raise only got 2.5% because they were hired at midyear.
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Old 06-04-2018, 11:11 AM
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Quote:
Originally Posted by my_alt View Post
Someone who was supposed to get a 5% raise only got 2.5% because they were hired at midyear.
Yes, that's normal.
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Old 06-04-2018, 11:21 AM
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I have seen this for bonuses only, i.e. if you get a 20% bonus and you received a promotion mid-year then 50% of your bonus would be based on your previous salary and 50% of your bonus would be based on your current salary.

For the prorated raises, do you get the full raise in the following year? I.e. Westley's 5.4% situation, does that become 10% as you continue working at the company?
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