Salary Raise after passing CPA exams. Please Help!

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  • #847604
    atabiaka
    Participant

    Hello everyone!
    Just a week ago i found out that i passed all 4 exams. it took me 6 months and i hoped that once i pass i’d have a raise in my salary pretty fast. However, after i talked to my employer I found out that evaluation will be only in the end of November, at best! I am currently at $50K salary, i have over 2.5 years experience (under CPA supervisor), i am taking my last two classes for license requirements.
    I do have options to interview for positions with a $65-75K salary. While i feel like i want to see what my employer can offer to me before i move somewhere else, i feel very disappointed that i have to wait at least till the end of November (knowing my office i think it will take longer). Also, i think my boss, as CPA herself, does realize that i expect raise and that i do have some other opportunities.
    In addition, i have more responsibilities now!
    So i guess my question is whether i am jumping the gun and it’s normal waiting window of two months or i should do something and maybe move on.
    Thanks!

Viewing 15 replies - 1 through 15 (of 24 total)
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  • #847617
    Anonymous
    Inactive

    First off, congrats on passing. However, if I were your employer, I would wait until you were licensed. Just because you passed does not make you a CPA yet. When is your performance evaluation period? If it's in November or December, it could be your supervisor will use that time to evaluate your work and give you a raise then. If you feel you want to jump and start interviewing, certainly go for it. I would wait until you are licensed to jump ship if your raise doesn't meet your expectations. You stated you still have some classes to finish and leaving could jeopardize your boss signing off on your year of experience to get licensed.

    #847623
    hasy
    Participant

    I would want to obtain your license first or have them sign the experience first (saying that you want to apply for licensure the moment you can before the end of the year whatnot). Just in case, you end up LEAVING for a better position and they might not sign off (I know in some states they're required to, but you never know).

    I have a similar problem. The real question is, how much of a raise would your company give in regards to that CPA license? How much of your role would grow after obtaining this raise you're requesting? While I know once I get my CPA, I can move for greener pastures, how much greener will the other company be? Would it have similar or BETTER advancement opportunities?

    This is how I feel for my current situation is that I'll obtain my CPA license first and see how much of change in responsibilities and salary I'll receive, then I'll consider applying for something else. However, if you're seeking a 15k+ pay bump, maybe it is better to move. Since that's a huge raise.

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    #847634
    ultrarunner
    Participant

    atabiaka, Congratulations! I agree with dankpsu. I was in your shoes as well. I passed the exams but got nothing. My evaluation won't happen until early next year. So I was disappointed and thought about leaving. But I also need more classes to take plus signing off before applying for the license. I work in industry. Due to fluctuation in industry, I am just wishing that I could get sign-off. My company just lay off more than 10% of workforce including one accountant. Also, I've been thinking about my future in terms of career. I will probably switch my field and start over. Until it happens, I need to keep my current job. Since you don't need to study hard any more, please take your time and think about what you want to do in your accounting career. Then, you will know what you want to do. I won't jump the gun right away. Good luck!

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    #847655
    atabiaka
    Participant

    Thanks to all of you! The fact that i am still taking these two classes makes a difference of course. I do also understand that a raise in $15K+ should be reflected in the role assumed so i thought of waiting till November and see what is happening.
    Thanks again!!!

    #847923
    Anonymous
    Inactive

    You have to realize something that is often missed…

    In industry, your CPA means nothing to your employer.

    Ouch, hurts, doesn't it? But, a Staff Accountant with a CPA that does duties A, B, C, and D is the exact same as far as work output as a Staff Accountant without a CPA that does duties A, B, C, and D. Any raise that you're receiving should be related to you taking on duties E and F, and should be the value of those duties to the employer. If the CPA enabled you to do those duties, then the CPA may be the reason you were able to do those duties and therefore the catalyst for your raise, but your raise is for doing E and F, not for being a CPA.

    In industry, the CPA brings you more money by qualifying you for new positions and duties that you wouldn't have been able to obtain without it. So, the $65-75k positions that you're able to go look at, which you're more able to compete for now with the CPA – that's where the CPA earns you money. E and F might not be worth $25k to your current employer, and they might not have a $75k position available that they want to put you into. But, maybe someone else does…and if so, then you can go get that $75k job and an equivalent 50% raise.

    My salary has received a 50%+ boost in industry since getting licensed 2 years ago, but it was due to a job change. I didn't get any pay raise for getting licensed (let alone for simply passing the exams and not being licensed). I did get a raise the year I got licensed, but it was at the annual evaluation and raise time, and it was the typical annual raise based on performance. Then several months later an opportunity opened up to get a Controller job, I took it, and I got a raise that would “make sense” for being licensed…but it wasn't for being an accounting staff with a CPA, it was for being a Controller.

    So, what raise should you expect for passing your exams? None. For being licensed? Little if any. For taking on new duties, whether there or elsewhere? The raise commensurate with the duties assumed. A $15k raise at your current employer would be 30%, which would be huge; if you're looking to be in the $65-75k range, you're probably better off looking elsewhere instead of looking for a raise from within, since a 30% raise even with new duties is extremely rare.

    P. S. Since Olintos Apprentice and I posted at the same minute – just wanted to comment – Robert Half's guide is averages of people who meet the criteria in the bucket, doesn't mean they got a raise once they got the CPA designation, just means on average they make that higher figure. There's many other factors, too.

    #847926
    Olintos Apprentice
    Participant

    That increase isn't unreasonable if you look at Robert Half's salary guide for industry accountants with CPA plus a few years experience. You may need a tiny bit of leverage to make it happen though. Only advice: 1-2 months may seem like a while but it really isn't in the grand scheme of things. Wait it out.

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    #848851
    Track55
    Participant

    I agree with Lilla. A certification doesn't mean squat in industry, especially if everyone else has one too. I work for a publicly traded company and the audit committee puts heat on us to get a certification. That can be CIA, CFE, CISA, etc. One guy has seven.

    Once I get my certification I won't even ask for anything, just that they pay for my dues and CPE's.

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    #848911
    Anonymous
    Inactive

    I agree with the others that having a CPA in industry isn't as important as in public, but where it is important are promotions that will certainly lead to higher pay. If you talk to recruiters or review requirements for accounting managers, assistant controllers and controllers, most positions require a CPA (at least the positions that pay a lot more). I would not trust Robert Half's salary guide. They are setting high benchmarks in hopes that prospective employees will use them as their recruiters. Using their guides, you should probably use a 90% factor for their salaries and reduce further for cities vs suburbs or rural areas.

    To the OP, you have to realize that 30% raises are extremely rare, even if you change companies. Getting licensed will get you about 5-10% (if your company is generous) and promotions will get you up to 10% additionally. When you move companies, they will bump you up based off your current salary of which 10% is normal with a small chance up to 20%. If you get it, kudos, but understand how hiring managers think.

    #848923

    I'll echo what the others have said because I experienced it when I finished my MBA. I thought there would be a big raise and bonus check waiting for me when I graduated and came to find out that was a pipe dream. What the MBA and CPA in my case did was show my employer that I am someone that is seeking more responsibility and that led to promotions that came with a raise. It's not like I was doing balance sheet recs and then all the sudden I had my MBA and should be getting paid more to do the same balance sheet recs. I w

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    #848926
    Vanessachy
    Participant

    @atabiaka, I understand your frustration. I am facing the same issue and have 2 years of work experience. Our firm had a review in the summer and I only had 2% raise (I passed two exams during the review period).
    Our firm is very small and I am actually looking for jobs in bigger firms; I don't even want to wait for the raise. It really depends on what you want, if you still feel that you can grow in your firm and happy there, you probably should wait. Otherwise, searching for a new job.

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    #848929

    I would wait for your review and make a case that you passed the exam and if you have your license at that point, that you'd like to take on more responsibility and advance. If that doesn't line up with your company's path, then I'd say start exploring your options and try to find your best option for your own development.

    Typing on this site has become infuriating

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    #848992
    Missy
    Participant

    In industry, the chances of getting a 30% salary increase without a significant promotion and increased responsibility is somewhere between slim and none.The best way to jump in earnings is to switch employers, but be sure you don't ever tell your current salary in an interview because even if you're the BEST person for a position, if they know you're making 50k they're only likely to offer about 20% more than you're currently making.

    Take the opportunity to interview and when you've got a true offer in hand, you can try to negotiate with your current employer but be prepared for them to accept your resignation without a counteroffer.

    WE are all very happy for your accomplishment and you should be proud but very few employers are as committed to their employee's development as you expect. The truth of the matter is if they can find ANYBODY who can do what you do for what you're currently making or less they're not likely to compensate you for your tremendous achievement.

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    #849057
    ultrarunner
    Participant

    @Track55, I am in California too. I work in industry (a publicly traded company). But in my company, no one (other than managers) is CPA. I will be the only one. So far the company reimbursed ethics exam. I won't ask for anything else other than dues and CPEs… Like Lilla points out, people in industry tend to fight over work. More work means more raise. All my colleagues (non-CPAs) somehow fight to get more work (although they are very nice people). Once I get my certification, I will definitely move on. BTW, I really like this discussion.

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    #849214
    atabiaka
    Participant

    Thanks to all of you for your replies. I did get more responsibilities as I mentioned. I do a lot in my firm from day to day operations to FS and budgets, distributions and reconciliations. I have 8 partnerships I keep books for, 1 main corporations my salary gets paid from and everyone else's and I have one Non Profit we also ran. So there is a lot of work.
    I do t no what promotion they can offer (I know now they are thinking) but I think the best course is to get promotion from them and a salary raise and move on in a year.

    #850084
    Track55
    Participant

    @ultrarunner I think the reason the audit committee puts heat on us to get certs is because we are Internal Audit not accounting. Investors sometimes ask what % of auditors have certs. They even track how many Cpe's we do each quarter. Thankfully they pay for all of that. But I will say all managers are CPA while the troops go for CIA , CFE or CISA more often. So ur right…

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