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On my annual review with my employer, I was offered a decent amount of raise initially(5k), but turned out, they did the math wrong when calculating my current salary. So a week later I had a second conversation to clarify, and I was told it was a mistake and the raise is only half (2.5k). Few employees left the firm lately and I was taking up more responsibilities. When brought up, I was told they really appreciate my extra work but that's what the budget allows to give me 2.5k raise.

The employer is known to be cheapskate. So I didn't push further, but there was an awkward silence from both sides during the conversation. They can't afford another 2.5k, seriously? Should I re-negotiate or just ignore and start looking elsewhere?

Mere appreciation for the extra work doesn't help paying bills buddy. That's what I really wanted to tell my employer.

UPDATE

It was a mistake on the salary. The person in charge of the accounting messed up and passed in wrong number as my current salary. (2.5k less) So it turned out the final number was 5k on top of current salary, when it was only 2.5k. It would be the right thing to do by honoring your initial offer, unless you are really a cheapstake which they are. So they came back apologizing multiple times for the screw up instead of honoring the amount.

I get raise yearly, so the number is just the norm, but considering the extra work being done for compensating for the ex employees, I was expecting a higher raise.

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    I don't think they did the maths wrong. I think they changed their minds. Time to look elsewhere. – TonyK Dec 17 '19 at 20:18
  • What percentage is 5k or 2.5k? – seventyeightist Dec 17 '19 at 20:29
  • "The employer is known to be cheapskate." - This sounds like a company that might be struggling. However, it's difficult to understand the reason you believe $2,500 is enough for you to care about but it isn't a large enough sum for the company to care about. It seems it's a large enough sum of money for anyone to care about. – Donald Dec 18 '19 at 18:42
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Should I re-negotiate or just ignore and start looking elsewhere?

You have this to consider:

  • You were given extra responsibilities but told there is not enough budget to properly compensate you
  • The company incorrectly calculated your salary ( don't mess with an employee's money )
  • Your employer is known to be cheap.

You can try to re-negotiate, but given the above information it doesn't seem likely that you will get very far. If you are not compensated what you feel you deserve and your current company cannot ( or will not ) compensate you then it is time to start looking elsewhere.

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    +1. Rule number one of supervision. Never make mistakes or joke about peoples' pay. Never. It's a huge and unrecoverable mistake. It's on the order of serving tainted food to restaurant customers or leaking a database with peoples' information. – O. Jones Dec 18 '19 at 14:14
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I was offered a decent amount of raise initially(5k), but turned out, they did the math wrong when calculating my current salary. So a week later I had a second conversation to clarify, and I was told it was a mistake and the raise is only half (2.5k).

That's a very weak move, whether intentional or an actual mistake. You do not toy with employee salaries like that, and if somewhere a mistake was really made, they should've honored the original raise. All said and done 2.5k over a year is not that much, and going back on this will be shattering for morale. Mistakes happen, don't punish employees for them.

Should I re-negotiate or just ignore and start looking elsewhere?

Both. On one hand explain to them that while you appreciate that they may have only budgeted for 2.5k your contributions are greater than that, around the five kay mark. They will have a choice to either counter offer somewhere in between, agree or outright refuse, though they will likely expect you to leave if this will end in refusal, even if you won't say that you will. Which you absolutely should not do, let the implication hang in the air without speaking the words.

Meanwhile, update your cv and start hunting. Finding a better job takes time, and if they would rather save 2.5k than stay true to their initial promise, you have no future with that company.

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It’s really up to you to say whether or not this is a fair raise. Would you have been fine with it had they originally told you the correct number?

If you like the job overall and have a relationship with your manager/whomever to have the conversation, I suggest framing the discussion of a larger raise in the context of a promotion or recognition that your role has grown. Before you have that conversation, be prepared to leave. If they are as cheap as you indicate and have already said, “no,” it sounds unlikely they’ll do better. And once you’ve raised the point, you’re announcing you are dissatisfied. It does not guarantee they’ll seek to get rid of you, but it at least opens the possibility that you are a flight risk.

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