topic Re: Salary Cap in Community Chat

Salary Cap

Sunnycorle — Fri, 09 Feb 2024 14:30:13 GMT

I am coming to this community with this question because I need a real outside opinion and am at a loss.

I have been working at my job for 24 years. I have changed my position once early on in my career and then stayed at my position. First I was a 1, then it took about 7 years to get to a 2. with a raise. Then about we will say another 7-8 years I got the 3rd promotion and got a raIse. Each year we get a raise or not depending on your performance. I kept getting good/great reviews and raises.

So now, I am at a salary cap. Been there for going on the 3rd year. I just got my review for 2023. I got the Highest on my review. very proud of myself and happy. The thing is my raise that I will get in April will not be added to my salary, this has been the situation for the last 2 years. They give me a "Bonus" that is paid out quarterly. The thing about all of this is my salary is no longer compounding, my real Bonus will never get bigger because my Salary doesn't increase because the raise is not included in my salary.

I work my tail off, train all my stalff, job changing, databases changing and i have to help figure out how the new database will be able to do the same or better job that our current database. Alll this said. I come here for opinions or advice. I am in my mid 50's and have a nice salary but its not growing and i have to work for aonther 13 years. I can no longer talk to my manager about this because she has been trying to get me a updated title to recognize what I do for the last 3-4 years. I now got the feeling from my review I just had that its not going to be this year.

with the state of inflation I am so upset about this. Anyone have any experence wiht this kind of situation.

Re: Salary Cap

SilleeMee — Fri, 09 Feb 2024 14:44:46 GMT

Because of inflation, and the availability of jobs, many people are working more than one job to make ends meet. I would consider working a second job until you can no longer stand it. Sock away the money or spend down debt.

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 14:48:39 GMT

@SilleeMee wrote:
Because of inflation, and the availability of jobs, many people are working more than one job to make ends meet. I would consider working a second job until you can no longer stand it. Sock away the money or spend down debt.

I was actually thinking that a second job would be better than keep trying to get heard and a promotion. thats what I see my raise as a lame second job since it doesn't get added to my salary.

Re: Salary Cap

Jersey Born — Fri, 09 Feb 2024 14:51:11 GMT

@Sunnycorle - I am sorry to hear that you are going through this. I have no personal experience advice to offer you, but you have two options-- continue at your present employer, or find a new employer, if you can, where you will earn more money in either your base salary or your base salary plus bonuses.

It's tough out there. High paying positions are hard to find, and many employers do not pay quarterly or even yearly bonuses. Yet, we are all experiencing an increased cost of living. Food, energy, cars, housing - everything - costs more these days.

I wish you the very best! I hope you can take some vacation time and interview somewhere wonderful where you will not face such a salary and bonus cap. You mentioned databases, so if you have some kind of IT position, is there some new tech certification you can work toward so that you will be able to find a higher paying position, either where you presently work, or somewhere else? Would your present employer agree to pay for your continuing education and then potentially put you in a new position at higher pay? It would be a tax write-off for your employer, and your employer might demand that you stay there for one additional year once you complete your education, however. (I know this from personal experience.)

Re: Salary Cap

SilleeMee — Fri, 09 Feb 2024 14:51:48 GMT

Your job doesn't define you. Jobs are there for you to make money. It's how you spend that money that can define you as a person, not the job.

Re: Salary Cap

kaydee50 — Fri, 09 Feb 2024 14:52:55 GMT

@Sunnycorle How is your bonus calculated? Although your salary may not increase, perhaps the percentage of your salary can? 5% bonus instead of 3%?

Otherwise, it seems that the company knows you're a hard worker, mid 50s, not likely to quit. I would watch my expenses and perhaps retire early? Will you get anything when you leave? 24 years is a long time at one company.

Good luck!

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 14:55:05 GMT

@SilleeMee wrote:
Your job doesn't define you. Jobs are there for you to make money. It's how you spend that money that can define you as a person, not the job.

Thats excellent advice. I care so much about what we do at my job and all the people in the department i work in. But you are right, if they treat me like this then I have to step down and think about me, my family and home. I am writing your advice down and putting it on my monitor. that you Sillee!

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 14:57:51 GMT

@kaydee50 wrote:
@Sunnycorle How is your bonus calculated? Although your salary may not increase, perhaps the percentage of your salary can? 5% bonus instead of 3%?

Otherwise, it seems that the company knows you're a hard worker, mid 50s, not likely to quit. I would watch my expenses and perhaps retire early? Will you get anything when you leave? 24 years is a long time at one company.

Good luck!

My bonus will be higher this year due to my excellent reviw so it will be prob between 8-10% of my salary. the thing is it will never grow and it also will effect my SS when I take it later in life. Just a downer and p.sses me off.

Re: Salary Cap

Imaoldhippie — Fri, 09 Feb 2024 15:01:21 GMT

How long have you known about the salary cap? It sounds as though you are stuck at your present job and salary. Looking for a new job would be near impossible for many reasons. How good are your benefits?

Im thinking a 2nd job is your only choice.

Good luck

Re: Salary Cap

Meowingkitty — Fri, 09 Feb 2024 15:14:42 GMT

I don't have any other advice than what's already been given. My last company did not give raises. Zip, zero, zilch. What you came in as is what you stayed. (This was a major insurance firm). If you got a promotion somehow they would only give you no more than a 10% increase. So if you came in as an underwriter off the street making $70,000 that is where you stayed but if you were an underwriter assistant making $35,000 and were promoted to underwriter you would only get a $3,500 raise. This company always promised bonuses but when it came to bonus time they always lowered the payout blaming floods, natural disasters etc. Getting laid off was the best thing that happened to me.

Re: Salary Cap

Travone — Fri, 09 Feb 2024 15:15:36 GMT

My advice is to update your resume and start looking elsewhere. Bring a copy of your stellar appraisal with you to the interview. With your experience and job longevity another company would love to have you for the next 13 years. You need to put yourself and your future finances first

Re: Salary Cap

MaverDaver — Fri, 09 Feb 2024 15:17:36 GMT

I worked for a large pharma company in NJ for 31 yrs as an Administrative Asst. I worked my way up from the 'secretarial pool' which was right after graduation to an AA for one of many Vice Presidents of the company. As I climbed the ladder and because of my length of service my salary became over and above the yearly salary guidelines. My reviews were above average culminating with the highest one could achieve. However, because I was regarded as "highly compensated' my yearly increases amounted to approximately $100/month before taxes. I was given stock options which paid off in the long run.

My last 5 yrs with the company were what one would call today as "silently quitting". I did the bare minimum to get by and never extended myself. I continued to get my yearly increases and felt much better about it. Perhaps you should "silently quit" and look for some other position either within or with another company.

BTW I left the company at age 50 because the division I was working in was moving to Georgia. I got 2 years severance, collected unemployment for a year and never regretted it for even one day. I officially retired from the company at 55 with all benefits I accrued.

Things have a way of working out!

Re: Salary Cap

ScrapHappy — Fri, 09 Feb 2024 15:22:57 GMT

My husband has been in IT for over 40 years. He worked his way up in different companies to a CIO position. The last company he worked for wasn't giving out raises, bonuses, promotions, etc. for the last 7 years he was there. There were having lay offs every so often and my husband took a pay cut so none of the people who worked with would loose their jobs. My BIL worked for a company for many years and then that company decided to cap salaries. He went on the job hunt immediately and quit that job. His wife worked at that same place so her salary was being capped too. She stayed but eventually got laid off. She found a new job and is happy now. My husband would always say he'd do just about any interview for a job (even if he wasn't looking for one or interested in the position) just to hear them out. You never know. By the sounds of it, you have a lot of experience, great work ethic with outstanding reviews. I would think that would make you very "hirable."

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 15:45:31 GMT

@Imaoldhippie wrote:
How long have you known about the salary cap? It sounds as though you are stuck at your present job and salary. Looking for a new job would be near impossible for many reasons. How good are your benefits?

Im thinking a 2nd job is your only choice.

Good luck

2024 year will be the 3rd year. I am stuck. I do make a good salary and I do have excellent benefits. My heart is in the job and what we do and I really care about all the people i work with, its tough! I am a breast cancer provider and I do credit my job as saving my life with the excellent insurance and great understanding during my treatments. I worked thru all my treatment except for surgery but that was just 2 weeks off. lumpectomy. so its just hard for me to think about leaving.

I know I sound like a jerk but a salary cap is really not right! i just want to be treated fairly.

Re: Salary Cap

ThinkingOutLoud — Fri, 09 Feb 2024 15:52:26 GMT

This situation doesn't sound like it's going to change so you need to. Keep in mind:

- Another job could be in a cheaper cost of living area

- Another job may initially pay less but provide more options for salary growth

- Another job might offer better benefits

ETA: If you don't want to change jobs, get a certification, etc (that the company pays for preferably) so they have no choice but to raise your salary.

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 15:47:06 GMT

@Meowingkitty wrote:
I don't have any other advice than what's already been given. My last company did not give raises. Zip, zero, zilch. What you came in as is what you stayed. (This was a major insurance firm). If you got a promotion somehow they would only give you no more than a 10% increase. So if you came in as an underwriter off the street making $70,000 that is where you stayed but if you were an underwriter assistant making $35,000 and were promoted to underwriter you would only get a $3,500 raise. This company always promised bonuses but when it came to bonus time they always lowered the payout blaming floods, natural disasters etc. Getting laid off was the best thing that happened to me.

Wow, i should be quiet. That is really rough and i could imagine the turnover.

Re: Salary Cap

Sunnycorle — Fri, 09 Feb 2024 15:48:32 GMT

@ThinkingOutLoud wrote:
This situation doesn't sound like it's going to change so you need to. Keep in mind:
- Another job could be in a cheaper cost of living area
- Another job may initially pay less but provide more options for salary growth
- Another job might offer better benefits

I think that is really my only choice. I don't see myself being able to not keep working at the level that I do. I so appreciate all the advice.

Re: Salary Cap

skatting44 — Fri, 09 Feb 2024 15:50:05 GMT

Look at it this way, maybe things will not remain the same in the next 13 years ragrding your " salary cap ".

I'd be looking at furthering my education to be able to apply for another higher paying job either within the same company or else where .

kindly suggest you increase the font size so it is easier to read your post .

Re: Salary Cap

JillyMarie — Fri, 09 Feb 2024 15:57:14 GMT

@Sunnycorle wrote:
@kaydee50 wrote:
@Sunnycorle How is your bonus calculated? Although your salary may not increase, perhaps the percentage of your salary can? 5% bonus instead of 3%?

Otherwise, it seems that the company knows you're a hard worker, mid 50s, not likely to quit. I would watch my expenses and perhaps retire early? Will you get anything when you leave? 24 years is a long time at one company.

Good luck!

My bonus will be higher this year due to my excellent reviw so it will be prob between 8-10% of my salary. the thing is it will never grow and it also will effect my SS when I take it later in life. Just a downer and p.sses me off.

Bonuses and stock option rewards (in lieu of fair salary increases) are usually not included in retirement payout calculations. This is obviously beneficial to the company in the long run. If your salary is not increasing and you don't see it changing in the future that is something to take into consideration.

Re: Salary Cap

Fressa — Fri, 09 Feb 2024 16:00:08 GMT

Sonnycort---I had a similar situation. My duties and promotions expanded over the years but my increases didn't match the additional duties/responsiblities. I finally reached the level that I qualified for quaterly bonuses. Depending on the laws in your state and your corporation there is little that you can control in the pay situatiion.

You can get another job or second job but if you still enjoy your current position then I would not jepordize that income. It's an emploers market currently and profits are not where most companies want them to be. Employees are on the shorter end of this situation. It's not fair or right but it's business. Decide if your job meets your present needs. You may have to wait it out for a couple of years before a major change.

Good Luck.