[shanek327]

I work in private, the company is a real estate investment firm and I an a property accountant. They started me at $50k first year out of school.

After a year, there’s a review and a salary increase. I am suppose to do a self-appraisal and make a request as to the increase.

Also, management knows I’m a CPA candidate and they gave me their word that they would increase my salary once all parts are passed.

If the year end comes, AND the exam is passed….what do you think is a reasonable salary increase request???

thanks!

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[shanek327]

…it is noteworthy that my Supervisor esteems the CPA very highly, even though my current position does not necessarily require it.

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[Mamabear]

Did they give you any indication of what kind of increase they were planning to give you once you passed?

Unfortunately you will likely get a variety of answers for this that probably won't be helpful because there are so many variables. What is the typical pay increase % in your company? Do they have a bucket that has to be split between employees?

From my personal experience in industry I received a $2,000 raise during my first review, then the company went 5 years without raises unless you went to a different position, then I got a $5,000 increase two years ago, then I got a $10,000 increase once I passed the exam and there is a promise of another increase once I am licensed. The raises here are all over the place so it would be hard to give advice to you that would be useful.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[tomq04]

Each company and even city is different…seems to me that $5-10 would be “normal”ish.

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

[shanek327]

@ tomq04 – you mean $5k-$10k per annum correct?

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[Mamabear]

I hope not. If I had a $5,000 raise each year since I started at this company my salary would have nearly doubled in the time I have been here. That is not normal at all, especially if you haven't been promoted or switched positions. Most companies I have worked for have done anywhere from 2.0-5.0% annually with more in years that you have extraordinary performance.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Kettlepot]

I could see them giving 5 to 10k for this one year if you pass all four parts and are working on getting fully licensed. The firm I work for gives out 2% to 3% annually just for a normal year (~1k).

Far: 49
BEC: 79 (Expired)
AUD: 51, 67, 64
REG: 59, 64, 59, 69

[mw798]

A standard merit increase in private is about 2.5% to 3% and up to 5% for the highest performer in a group. So assuming you get the high performer increase, then approximately $2,500 I would assume.

Promotional increases are about 10% so don't expect 10% unless you are promoted.

I've worked at 4 different fortune 500 companies, and the above was the same for all of them.

[Anonymous]

You'll come pretty close to doubling your salary ever five or six years at the Big 4. It's being able to hang around for 10 to 12 years that's the hard part.

[Anonymous]

To answer to OP- I'd shoot for 7%-10%.

[mw798]

Bill – that's public accounting; you aren't going to get that in private. Unless you are being promoted, 7% to 10% is unheard of.

[Mamabear]

Yeah–Our management would probably laugh at us if we requested 10% raises annually. The OP is in private and the 2-5% I mentioned earlier is pretty standard. You are seriously making me rethink my dislike for public accounting though. Double your salary in 5 years? That would be wonderful….except the hours suck. Eh I'll take my smaller pay for a work/life balance.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

Public or private, I still think the OP should shoot for 7% -10%.

He was a few things going for him in that the firm indicated there is a first year bump and that his supervisor appreciates the value that a CPA would bring to his or her team.

Also, a 2% -3% isn't a raise or even a bump. It's a cost of living adjustment to account for inflation. Now the OP probably learned a lot in his or her first year and is sufficiently capable of performing the roles of the job. The additional 5% would be to account for the increase in the OP's skill set over the past year.

Add the COLA and the value of increase in skills and you get 7%. Ask for 10%, settle for 7%.

[ajurew1]

I've typically received 4% per year working for a real estate investment company. I was told this was above average.

I assume raises were higher before the real estate market crashed in 2008-2010.

BEC - 84 (4/13/2013)
REG - 82 (10/17/2013)
AUD - 85 (12/5/2013)
FAR - 75 (10/11/2014)

[mw798]

Even if his supervisor really appreciates the CPA his hand may be tied by HR guidelines. I'm in a management position right now and even if I wanted to give a merit increase above 5%(which is only reserved for the highest performers) I can't without taking a corresponding % from other people and getting clearance the Director of HR. With that said, in the 5 years I've been here, HR has never approved a beyond 5% merit increase. That's with my current company, the other company I worked for had no exceptions what so ever, there were strict ranges based on formulas and you had to follow them. That's just how private works.

And to the above poster, 4% is above average. An average performer will get about 2.5% to 3% and an above average performer will get 3.5% to 4%, with an exceptional performer getting 5%.

[Anonymous]

Are you guys negotiating beforehand, or just taking what is given to you?

In public, especially the Big 4, the negotiations are great. Very efficient and relatively transparent. Also, anything under 5% is a slap in the face. A promotion year gets you 15% to 20%.

[Author]

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