Annual performance review - first one in 2 years. overall rating of 4.98 out of 5 --> resulted in a 2.5% increase. During this discussion, I was told my department was having budget cuts so no employee expenses, team events, or office lunches for the rest of the year. Not sure, but I think it sounds like they want me to decline my raise so they can still have office pizza parties.

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I would just take the 2.5% and buy my own pizza, lol. I mean, if they want to slash budgets and decrease morale, that's their choice. But at this point, a 2.5% raise is barely a cost-of-living raise at this point.

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Exactly.. Raises nowadays are pretty minimal so set expectations pond scum low. If one is looking for that money bump, go elsewhere. That's where one gets that 20% increase. Staying "loyal" yields lose to nothing raises and more work, maybe a promotion of deserved. Stay loyal to yourself and if mgmt don't care, then you know what to do.

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This is why I tell people there’s no point in working hard or showing loyalty.

Promotions are political and relationship driven, raises come from moving jobs…that’s the late stage capitalist world we live in.

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I'll take that over my half a point.

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I don’t get that impression. Instead, I see this as “despite your awesome performance score, we can only afford to give you a 2.5% bump.“

likefunny

It’s happening everywhere. Take the raise for sure.

It is what it is

It’s tough when you're working hard and doing well, but the reward doesn’t match. The 2.5% raise doesn’t sound like much in the context of that performance rating, but it could be that your department is just facing financial constraints. If you feel the raise is deserved, you might want to politely accept it. If you’re still feeling uncertain or uneasy, it could be worth asking for more clarity during your next meeting. Open, honest communication about how you're feeling can also help you navigate this moving forward.

They're explaining why they can't give you more for merit. I would thank them for the increase and be done with it.

That is crap. But like the others said, I’d buy my own pizza.

Does 2.5% feel low compared to others at your company? It does seem like there might be some cost cutting going into it too

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