Would Like to Renegotiate Starting Pay

  • Creator
    Topic
  • #1864804
    Steph
    Participant

    I think my last post got deleted. Sorry if it pops up.

    I accepted an offer for a first-year auditing position about a month ago with a smallish regional firm. I signed the offer letter with my current starting salary (between $50-$55k). Job starts this fall.

    I found out last week I passed my last exam (YAY) and my supervisor at my current job (temporary industry accounting gig) is willing to sign off on the hours I will be logging under him this summer (he’s an active CPA).

    I’d like to go back to my firm and ask for the full $55k given these developments. My reasoning is even though they knew I was 3/4 done when I interviewed for the position, I:

    1. Will not be utilizing the benefits I could have taken advantage of had I not passed (e.g. PTO specifically for studying for the exam, obviously reimbursement for exam fees and study materials, etc.).
    2. Am a more desirable candidate than I was a month ago. Along with the passed exams, I am THAT much closer experience-wise to getting my license (I’ll be 1/4 done by the time I start with them).

    Is this unreasonable or even possible? Will I completely insult them? Just FYI, I’ve interacted with one Manager, one Partner, and the Firm Administrator. They all come off like super nice people.

    Thanks in advance for your insights.

    REG: 60, RETAKE MAY 2016
    FAR: AUG 2016
    AUD: APR 2016
    BEC: 68, RETAKE PENDING

Viewing 12 replies - 1 through 12 (of 12 total)
  • Author
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  • #1864972
    Anthony
    Participant

    It won't hurt you if you try, but I doubt much will happen because you're just an associate. Do they not offer a bonus for passing the exams?

    #1865101
    AsianNinja
    Participant

    @Steph In my opinion, I think what offer you have is great but if I can renegotiate for better one but be careful because they may be not open about it.

    For me, I have been with this small CPA office for almost 2 years and my rate is $16/hr with no benefits. They know I passed the CPA exam but no raise whatsoever :/ (maybe I have to ask for it?) Most of my friends have the better rate ($19-20 when they started their career) and they did not sit the CPA exam yet.

    I wanna look for a new job but I promise the owner to work for him until the end of next tax season. Any advice on what should I do in my situation? If I ask for a raise, what should be the appropriate rate though? Or should I just apply for a new job?

    #1865131
    Steph
    Participant

    @Anthony, no bonus but they sent me a beautiful bouquet of flowers the day after I told them I had passed. It was a really lovely gesture considering I haven't even started yet.

    @AsianNinja, what the hell? That's an insultingly low rate of pay, especially considering it's not supplemented with benefits. Yes, I would recommend both. Look for a new job AND broach the subject of a raise. Do research and see what is a typical rate of pay for someone with your experience and responsibilities. I can almost guarantee it's NOT $16/hr with no benefits.

    REG: 60, RETAKE MAY 2016
    FAR: AUG 2016
    AUD: APR 2016
    BEC: 68, RETAKE PENDING

    #1865179
    Anthony
    Participant

    @AsianNinja Where do you live? Are you a licensed CPA yet? If not, get licensed then start searching. Trust me, you are selling yourself short here.

    #1865263
    AsianNinja
    Participant

    @Anthony & Steph I am feeling the rate is low too but the only thing I like to work for them is time flexible as I can arrange my own schedule as I want. I am currently part-time around 25-30 hrs/a week (working for them full-time before).

    I live in OC California. I am in a licensing process right now and I had my current boss signed for my experience (mailed to the state already). My job duty is full bookkeeping (mainly), tax preparation (second mainly and this year is my first year doing it), payroll, sales tax like everything you can imagine in a small office.

    I just want to know what rate range is good to bring up for a raise in my area. By searching for internet, I see the price range for someone with my experience without CPA is around $23-25 (idk if it's considered with benefit or not). Also, passing CPA affect the rate or not? or only when you have the license, it does?

    I am studying for the CMA (gonna sit in Sep & Oct this year) and I want my boss to sign for 2 years experience as well when I'm done with the CMA exam. Switching job is a painful process for me as my interview skill is not so good 🙁

    #1865476
    Anonymous
    Inactive

    The starting salary is probably dependent on experience, not whether you're a CPA. I'd also agree that your current offer already seems quite reasonable.

    Renegotiating before you've even started is obviously not likely to make a favorable impression.

    #1865494
    Steph
    Participant

    These are questions you need to answer yourself. Most places of employment will try to get away with paying you as little as they possibly can. Sounds like your current boss is especially guilty of this. You must decide how much longer you are willing to put up with the low pay. If you are intent on staying there, when you get licensed is when to strike and ask for that big bump.

    LOL $16/hr in OC. I lived in southern OC several years before I moved to where I am now. That's egregious for that area. Pretty sure I could make that cleaning houses, which is one of the jobs I had when I was living there. I scrubbed toilets for a rich woman in Irvine.

    REG: 60, RETAKE MAY 2016
    FAR: AUG 2016
    AUD: APR 2016
    BEC: 68, RETAKE PENDING

    #1865497
    Anonymous
    Inactive

    @AsianNinja I started out of college 52k (25/hour).. you are getting robbed! I would imagine even more so since you're in California!



    @OP
    like others have said, no harm in asking. You should definitely get something for getting your CPA, whether a raise or bonus is just depending what you're willing to settle for. Worse case scenario you just decide to not take the job and go somewhere else who will pay you appropriately.

    #1865515
    Steph
    Participant

    Thanks, @Calvinus and @eMeRGeD for giving feedback on the OP. I've thought it over today and I think I will just sit on it for now. If I do well with my first busy season AND earned my license, I'm sure as shit pushing for a decent raise then.

    REG: 60, RETAKE MAY 2016
    FAR: AUG 2016
    AUD: APR 2016
    BEC: 68, RETAKE PENDING

    #1865542
    fuzyfro89
    Participant

    Is this unreasonable or even possible? Will I completely insult them? Just FYI, I've interacted with one Manager, one Partner, and the Firm Administrator. They all come off like super nice people.

    I would lean toward “no”, unless they gave you some sort of indication that your offer was contingent on passing the exams or open formally to renegotiate. Most entry level staff are given offers before they pass all the exams, so it's generally accepted that passing and getting the license is baked into your offer (sometimes explicitly, such as before your promotion to senior associate ~2 yrs in).

    If you had said big 4 / national / regional mid-sized firm, I'd almost certainly say no. They would not go for it at all. By “small ish firm” do you mean like < 10 partners? if so, it's possible they would be willing to give you an early raise, but not before you even start.

    The upside? If your firm is actually small, you can actually quantify your benefit to clients and the firm FAR more directly than at medium/national/big 4 firms. I wouldn't bother for $2-4k.

    Something like this:
    – first 6 months (kick ass… assuming you do, #2)
    – ~6 months have a initial conversation assuming you do #1 (kick ass at your job), and continue to do so. In that conversation with supervisor(s), you want to touch on your plan to continue growing, developing in your immediate role and toward the next role… and as part of that outperformance, you want to also request that you begin a more formal conversation around your pay outlook (in the next 6 months, 1 yr, and 2 yr… to show you are not just looking for a short term raise/bonus to keep you happy, though of course only the first raise/bonus will be guaranteed at your staff level)
    – assuming you are far above the pack, they will either respond that you have to wait until performance eval ~1 yr, or actually be open to having the conversation
    – if they are in between, remember this is not a one-shot goal… keep having the forward looking compensation discuss every 1-3 months… worst case is it takes you until the ~1 yr mark, but they have known for 6 months that you are looking for a big adjustment. Most people are afraid to talk about pay expectations and to work together with supervisor(s) to set goals to reach them. This is where you can stand out.

    Remember, they may go for it or they may not, but you've made your case, been professional about your goals/expectations, and the ball will be in their court to meet it or not. If not, then you need to decide if you want to stay or look elsewhere (preferably at least look elsewhere even if you don't intend to leave… just as a market value check if nothing else).

    Especially as a staff, but in general as well, it's implied that if your compensation expectations aren't met (within reason over time) then you will leave. No need to come off “harsh” and state that. if you tell them you are hoping for ~20% based on market value, your excellent performance, they should know that missing by a meaningful amount means you are likely to look elsewhere. Just be sure to do some basic homework and don't ask for something unreasonable in the market, or the firm, otherwise you will come across as out of touch. The more data you have, the better, because it's not just an opinion any more.

    Good luck!

    #1865884
    Steph
    Participant

    @fuzyfro89 this is truly excellent advice. Thank you very much for taking the time to respond- I'm totally stealing this. It's logical and elegantly sends the message I want without stepping on any toes.

    It's 4 partners and I believe 50-75 employees. So small but not insignificant.

    I agree it's foolish to waste my capital trying to get a $2-4k raise especially when I haven't proven myself a good auditor yet. I was only considering doing this because I feel I have more bargaining power before I actually start (they know the company I work for is very eager to keep me) and I wanted to squeeze every last dollar I possibly can.

    I just got it in my head that most of their employees probably pass the exam after they've been working for the firm and get raises or bonuses to reflect it but I'm the odd man out because I had already had this thing mostly passed before I joined and by the time June (2019) evals roll around, no one's going to care by then that I passed/got my license so it'll be worthless by then in terms of salary negotiations.

    REG: 60, RETAKE MAY 2016
    FAR: AUG 2016
    AUD: APR 2016
    BEC: 68, RETAKE PENDING

    #1866352
    CPYAYYY
    Participant

    Work for local government 🙂 I make 35 an hr in Sacramento.

Viewing 12 replies - 1 through 12 (of 12 total)
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