[Anonymous]

Hey all,

Does anyone have experience with asking for raises of this size? Long story short, I work at a small firm (12 employees, 5 of which are CPA’s) in Central PA. I have been working there since August 2012 and am called a Senior Accountant, though I think my actual responsibilities fall more towards supervisor/manager. I work primarily on audits and am in charge of audits from planning to completion. In tax season I handle the tax work for most of our largest manufacturing clients. I have my CPA license, CMA Certification, and a Master’s Degree in accounting.

My current salary is $39,000. We get paid overtime so I think it winds up around $43,000-$45,000. I’ve done a fair bit of research using Robert Half, Glassdoor, trade journals, etc, and the consensus I am seeing is that a senior accountant should be making around $50,000-$55,000 minimum (adjusted to my local market), not including overtime. To make matters worse, there are private industry postings around here for accounting jobs that make $60,000, without the utter chaos of tax season to deal with.

I have a review coming up in a month or two and am trying to figure out what to do. I absolutely love where I work and the workplace environment could not be replicated anywhere else, but at the same time I have student loans and a mortgage and the bills need paid. I would like to discuss my salary being brought up to the $53,000 to $54,000 range, but I don’t know how to phrase that without the powers that be shutting down before I can even make my case. If I was on the other side of the table, if someone started talking about a 35-40% raise I would probably shut down too. I don’t have very much insight into the financial health of the company, but I do know that it is very profitable and growth has been absolutely exponential in the last few years.

Has anyone else been in a similar situation? How did you approach it/how did it go?

Thanks!

[Anonymous]

I'd work another offer from a competing firm and come back to them with a take it or leave it offer. You're definitely worth way more than 60k with your background.

I work at a Big4 (senior in the advisory practice) if that adds any weight behind my words 🙂

Good luck.

[Anonymous]

I'd work another offer from a competing firm and come back to them with a take it or leave it offer. You're definitely worth way more than 60k with your background.

I work at a Big4 (senior in the advisory practice) if that adds any weight behind my words 🙂

Good luck.

[tomq04]

I'm in the same boat, going from 44k to 55k. Not sure I have much chance, but if they aren't making those steps soon i'll be out of dodge within a year.

Sometimes the hands you are dealt force your action. From what you've laid out though, I would think you have a pretty decent shot.

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[tomq04]

I'm in the same boat, going from 44k to 55k. Not sure I have much chance, but if they aren't making those steps soon i'll be out of dodge within a year.

Sometimes the hands you are dealt force your action. From what you've laid out though, I would think you have a pretty decent shot.

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[fuzyfro89]

Does it matter if they can't afford to pay you what you're worth OR if they are unwilling? Either way, it's not your problem. Asking for a raise is an art, but at the end of the day your incentive is to maximize your pay, and your employer's incentive is to pay you just enough to keep you around (of course neither side knows the exact number of the other side).

Are you willing to leave if they say no?

If no, then ask and see what happens. Since you don't have anything to stand on, you will likely continue being underpaid.

If yes, great! Show them your research on your experience level and comp in the local area. If you do this, and they decline, then they should not be surprised if you leave in a few months for a big raise somewhere else.

I wouldn't worry about the % raise, since you're only talking about $10-15k.

I want a butler in my house, but I can't expect one to work for $5/day (even though is how much I could afford for a butler budget). Similarly, if they want someone with a supervisor skill set, they have to be willing to pay comparable to what they could expect to make elsewhere.

[fuzyfro89]

Does it matter if they can't afford to pay you what you're worth OR if they are unwilling? Either way, it's not your problem. Asking for a raise is an art, but at the end of the day your incentive is to maximize your pay, and your employer's incentive is to pay you just enough to keep you around (of course neither side knows the exact number of the other side).

Are you willing to leave if they say no?

If no, then ask and see what happens. Since you don't have anything to stand on, you will likely continue being underpaid.

If yes, great! Show them your research on your experience level and comp in the local area. If you do this, and they decline, then they should not be surprised if you leave in a few months for a big raise somewhere else.

I wouldn't worry about the % raise, since you're only talking about $10-15k.

I want a butler in my house, but I can't expect one to work for $5/day (even though is how much I could afford for a butler budget). Similarly, if they want someone with a supervisor skill set, they have to be willing to pay comparable to what they could expect to make elsewhere.

[mla1169]

I've never heard of someone getting that size raise without switching employers. I'm rooting for you to be the first!

That said go to your review with solid references on salary averages in your area. Let them know that while you haven't been seeking other employment, you were curious about where someone with your qualifications should be.

I don't want to be the Debbie downer but I will tell you this: $5k of overtime per year works out to about 3.5 hours per week of OT on average. (Assuming you make $20/hr your OT rate at $30/hr) 43.5 hours/week is a sweet deal for most senior level or supervisor positions. If you found a $55k position but worked 50+ hours average you'd be losing money.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

I've never heard of someone getting that size raise without switching employers. I'm rooting for you to be the first!

That said go to your review with solid references on salary averages in your area. Let them know that while you haven't been seeking other employment, you were curious about where someone with your qualifications should be.

I don't want to be the Debbie downer but I will tell you this: $5k of overtime per year works out to about 3.5 hours per week of OT on average. (Assuming you make $20/hr your OT rate at $30/hr) 43.5 hours/week is a sweet deal for most senior level or supervisor positions. If you found a $55k position but worked 50+ hours average you'd be losing money.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

@MLA – 5k was just a quick number thrown out as I was typing the post. Outside of tax season it's pretty much a straight shot 40 hours, which is definitely nice. During tax season it's usually between 60 and 70 hours a week, some weeks more around the deadlines. I call it overtime but it's just additional straight time. So say 25 additional hours a week x 12 weeks of tax season = 300 hours x 20/hour = $6,000 “overtime”

[Anonymous]

@MLA – 5k was just a quick number thrown out as I was typing the post. Outside of tax season it's pretty much a straight shot 40 hours, which is definitely nice. During tax season it's usually between 60 and 70 hours a week, some weeks more around the deadlines. I call it overtime but it's just additional straight time. So say 25 additional hours a week x 12 weeks of tax season = 300 hours x 20/hour = $6,000 “overtime”

[mla1169]

Oh well if you're only getting straight time that definately changes things!

In many private sector jobs that's about the same amount of hours ( in my many years of industry) you average 50 hours at month end, maybe up to 60 at year end and 40 the rest of the time. I hope your employer values you enough to pay you what they'd ultimately have to hire someone at if you found something else!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

Oh well if you're only getting straight time that definately changes things!

In many private sector jobs that's about the same amount of hours ( in my many years of industry) you average 50 hours at month end, maybe up to 60 at year end and 40 the rest of the time. I hope your employer values you enough to pay you what they'd ultimately have to hire someone at if you found something else!

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[005]

yeah, you should def be making more than that.

Explain to your superiors that it's nothing personal; you love where you are; but at the end of the day, your career was an investment on your part.

I'd say you should start looking to leave, though

BEC - ✔
REG - ✔
AUD - ✔
FAR - 11/29/14

CPAExcel, Ninja MCQs, and a sh*t ton of coffee

[005]

yeah, you should def be making more than that.

Explain to your superiors that it's nothing personal; you love where you are; but at the end of the day, your career was an investment on your part.

I'd say you should start looking to leave, though

BEC - ✔
REG - ✔
AUD - ✔
FAR - 11/29/14

CPAExcel, Ninja MCQs, and a sh*t ton of coffee

[Lindrobe]

I hate to say it, but I agree with 005. I am in the same situation and my employer basically laughed at me when I asked for a raise. I have learned that most of the time, you have to change jobs to get a significant pay increase.

I disagree with mla1169 about your company having to pay more than they are paying you to replace you. The sad thing is, there are many desperate people out there that will gladly take the $39,000 that you are getting paid.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Author]

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