How to interpret a performance review?

[sports_brah]

I'm fairly new to the world of professional work, so looking for some advise here.

I joined an investment bank and have been working away for just over half a year now.

I was called into the office today to discuss my performance and by virtue my pay.

I was told that payrises are not common after such a short time working, but that my performance had been strong. As such they were going to raise my salary by a token amount, with the insinuation that if my performance remained strong, that I could expect a far larger one next year.

Personally I wasn't expecting anything, and whilst I'm happy with the praise, I'm also questioning the point of the raise. The amount was small to my income which begs the question of why bother going to the hassle? I was fairly chilled about it, I explained where I was looking to go (sparing no ambition ), but I didn't really negotiate on the money or really question it much further.

Should I have done so? I'm now worried (with the benefit of hindsight) that I should acted differently, and to the implications of such a payrise. Would it have been more savvy to have negotiated for more, or to have questioned it or leveraged myself better?

I'm veering on optimism because I seem to have been the only one to have received a raise, but I was looking to get some more feedback from experienced people on here who would interpret it better.

Thanks!

 

[VoG]

Its a carrot obviously, or would you rather have had the stick approach, in essence what they've done is say keep plugging away & there will be much more to come, so stick with us & we'll see you right.

 

[Mason-]

Eh you reap what you sow.

If you're being cynical and think they're trying to give you the minimum possible then see what happens at your next review. If you keep working to a high standard you will be able to put forward a case to getting the raise you want.

 

[sports_brah]

Its a carrot obviously, or would you rather have had the stick approach, in essence what they've done is say keep plugging away & there will be much more to come, so stick with us & we'll see you right.

But I wasn't expecting stick or carrot, I'm only through the door relatively speaking, I was expecting a review after the year mark etc.

Eh you reap what you sow.

If you're being cynical and think they're trying to give you the minimum possible then see what happens at your next review. If you keep working to a high standard you will be able to put forward a case to getting the raise you want.

As above.

I'm happy with them trying to pay minimum, because I'll look for maximum and hopefully we'll find a common place.

I'm just questioning the timing.

 

[Angilion]

I think the most plausible interpretation is this:

Your employer thinks you're good at the job now and will probably get better at it with more experience, so they think that employing you will make them money.

Your employer isn't the only investment bank.

The more experience you have, the easier it would be for you to resign from your current job and get one working for another investment bank.

Your employer would prefer that to not happen, so they're acting early to reduce the chance of it happening. Some praise, some more money and the implication of a lot more money to come if you stay with them. That would explain the timing - it's cheaper for them to do it sooner rather than later. If it was a few years from now and you could quite easily get a job with a rival bank and you were annoyed at your current employers, they'd have to give you a lot more to convince you to stay. It's better for them to spend much less now on someone they consider very promising. People aren't entirely mercenary - the more content a person is with their job the less likely they are to leave even if they could get more money elsewhere.

 

[Mr Badger]

Sounds like the classic "Is the new guy Alpha material?" test.

Unfortunately you did not display the appropriate response to be granted a larger pay rise and breeding rights with the sexytaries.

 

[arknor]

, I'm also questioning the point of the raise. The amount was small to my income which begs the question of why bother going to the hassle?

Quite possibly just so so don't feel inclined to ask for one until next year when you get token amount again

You are paid as little as they believe you think you are worth which is often under market value

 

[Seft]

Sounds like they were doing end of year reviews for everyone. You, being relatively new, were only notionally taken through the process whereas next year you'll be properly assessed for payrise/bonus/promotion.

 

[Beerbaron]

Be grateful you got a performance/pay review. Ive been at my company for 2 years and not seen one. Even just a performance review would be something

 

[Mynight]

Worst I've got a pay rise and you haven't thread .


I agree with arknor it's probably to dissuade you from requesting another pay rise/keep you from looking for another job with the prospect of a much bigger one next time.

 

[Derek W]

3 / 6 month review to see how you're getting on. Not really unheard of is it? When i joined the company I'm with I had a 3 month review, the boss was happy, I was happy, I got a raise. No complaints there.

 

[Calpol]

OP -
you had a performance review - that's good
someone said nice things about you - that's good also
they rewarded you - that's most welcome

Life isn't always like that so make the most of it. Smile, say thank you and go get on with your job. My impression of investment banking is that you get worked pretty hard for anything you get but the rewards can be very strong but its also quite competitive and therefore talent management is probably something they work hard at.

Its quite normal for people to get no appraisal, no pay raise and not so much as the odd "thanks you or well done". Therefore you are in a relatively good spot

 

[Mr^B]

Too many unknowns to say for sure. But a token raise after 6 months, if you've joined mid-review period, isn't uncommon. You were probably started on a relatively low salary with regards to the role anyway, so there's room for them to adjust you upwards whilst you learn and grow into the role.

I'd be more concerned that the subject of bonus didn't come up. Or at least you didn't mention it. It's as common to give a pro rata bonus for a partial year, as it is to give a token pay rise after a partial year. Unless they do weird things with bonus schedules, but usually they go in step with performance and salary review.

And, top tip, don't try and negotiate pay rises/salary reviews AT the salary review meeting. By that time the amounts have usually been reviewed by finance and signed off, which makes it harder for you to negotiate. Do the negotiation throughout the year, you'll need to start at least 2 months before the actual date, because that's when they will be starting to submit pay rises and bonuses in the budget.

 

[Diddums]

A mate of mine rang me up one day telling me they'd bumped his salary much like this. He was so happy, took my wife and I out for a dinner and whatnot.

A few weeks later his company made one of his colleagues redundant and put that workload on him.

 

[MickeyFinns]

Be grateful you got a performance/pay review. Ive been at my company for 2 years and not seen one. Even just a performance review would be something

Have you requested one at any point? If not ask your line manager for one today. Even if just to ask how they think you are performing.

They are not obligated to organise them, even though it is in both parties interest. If they are reluctant to schedule one after asking that will tell you a lot about them as an employer.

 

[swain90]

If i were you, I'd be happy with the pay rise (not trying to imply your not btw) and carry on working at the pace you are.

Then when your next pay review comes around, I think that would be a good time to try and negotiate, don't go in all guns blazing but when they suggest a figure it may be worth asking if it is negotiable as you have learnt x, ,y and z over the past year.

As long as you ask, the worst they can say is no, worst comes to the worst once you have enough experience look at jumping ship if someone else is looking to pay more.

 

[MisChief]

Your company could be like mine in terms of performance review and pay increases:

- Bi-annual performance/workplan review. (It is made mandatory in my company and tracked, managers can't even get out of this one)

- Guaranteed pay increase every 12/18/24 months depending on your level and performance. Non negotiable - but highly depends on your relationship with your manager and how much 'pay increase allowance' they have available to give.

It is worth asking how frequent your performance/pay reviews are, but the best thing to do is speak to your other colleagues who have been there for longer to understand how it all works in your company.

 

[Beerbaron]

Have you requested one at any point? If not ask your line manager for one today. Even if just to ask how they think you are performing.

They are not obligated to organise them, even though it is in both parties interest. If they are reluctant to schedule one after asking that will tell you a lot about them as an employer.

No, I'm not too bothered about it any more. I'm preparing to take my CISSP exam and then I'm off.

 

[jamief]

It sounds like a "all staff get n% raise", rather than you being singled out?

 

[slinxy]

It's better than a poke in the eye or a poo in the letter box...

It's easier to get a payrise when you first start working as I assume as your quite low on the pay scale compared to members of staff that's been there a while who are reaching the top of their pay scale. Also in the line of work your in; they likely get more bonus due to them handling more accounts.

I just had my first real review at my place, it's far different than any other place I've had before. At the start of the year we do our own (SMART) targets, which management sign off. Then at the end of the year we grade ourselves, and the pay rise is determine on the grade.. of course it has to be agreed by the manager and then the board of review before we get the pay rise or the slapping.. lol