Does a Pass Letter mean more money?

Just had an annual review. My boss said I've done an awesome job.

He told me I will get a 3% raise. I think that is low for an "awesome job"

He said that once I pass the PE, ( I took the test in April), I would see an increase of about $0.44 an hour.

I think this is way too low. My billing rate would jump $6.00, and I would only see $0.44.

Am I out of line? How much are people expecting to see.

your thoughts

Well, I'm in the federal system... Having the PE means you qualify for higher paying jobs within the government. That being said, look for a higher paying job and once you find it you can use it as leverage for new salary negotiations with your boss. That's my thought on this.

There are several threads on this topic already, if you do a quick search. The general answer is as clear as mud. Some companies give more, others nothing at all. The more important question is how much do you think you are worth now with a PE and are you willing to changing jobs to get it.

I got nothing for passing my PE exam, which I knew going in. It was for my future and for myself.

Durango Dave said:

Just had an annual review. My boss said I've done an awesome job.
He told me I will get a 3% raise. I think that is low for an "awesome job"

He said that once I pass the PE, ( I took the test in April), I would see an increase of about $0.44 an hour.

I think this is way too low. My billing rate would jump $6.00, and I would only see $0.44.

Am I out of line? How much are people expecting to see.

your thoughts

Click to expand...

For me, not really as related to passing.

Company gives automatic $500 on-time bonus for a pass, but no ongoing salary increase. However, it has been made clear that I will not be able to continue at my current pay grade without the PE since the pay grade descriptions have been re-written in the last couple of years, and mine now says "has a PE license". So, indirectly there is money on the table.

Durango Dave said:

Just had an annual review. My boss said I've done an awesome job.
He told me I will get a 3% raise. I think that is low for an "awesome job"

He said that once I pass the PE, ( I took the test in April), I would see an increase of about $0.44 an hour.

I think this is way too low. My billing rate would jump $6.00, and I would only see $0.44.

Am I out of line? How much are people expecting to see.

your thoughts

Click to expand...

Alot of it depends on the inner-workings of your company. They may have hired you at a higher than average rate which would have been equaled out with the annual raises. It also depends on your position within the company. Did you take your PE as soon as you were eligible, or did you wait a few years? How did your pre-PE payrate compare with the industry standards (and also your post-PE)?

If your billable rate is only increasing by $6/hr, then that indicates one of three things: 1) Your company either overvalues it's non-PE employees, 2) it undervalues more experience workers, 3) was billing you at some non-standard, intermediate rate.

Although the 3% was low, it was still 3% higher than ANYONE at my 400+ employee firm (despite a phenominal year last year, some people actually got laid off). I have been told that my company offers about a 12-15% raise for passing the PE simply because the billable rates increase about 20-25%.

My employer would give a 10% raise

It depends on your employer. I've talked to several people that I went to college with on this. I work for the state of Louisiana. When I pass(praying this time) I would get a 10.5% on the reception of my license plus almost 20% over the next 2 years. BUT, my current salary is lower than what most of my fellow graduates are pulling in. They are getting little to nothing of a raise but they work for private companies and the license is usually based off of a senior engineer or firm license. My raise may seem HUGE, but I will be only slightly above them in the long run.

I would suggest seeing where your current salary is compared to others with other companies and what the future holds for you before you ask for higher or quit for another company. Just my opinion though.

He said that once I pass the PE, ( I took the test in April), I would see an increase of about $0.44 an hour.
I think this is way too low. My billing rate would jump $6.00, and I would only see $0.44.

Click to expand...

What you have to understand is $6 isn't $6. To explain it let me break it down,

30% is for structured overhead (Utilities, rent and company supplies)

20% of every dollar is for taxes (yes businesses have to pain income tax too)

7% is to match what you pay in SS (Payroll tax)

23% is for management/secretarial overhead (To pay for the people that don't actually do any income work)

10% is for employee bonuses (might seem like a lot but the majority

3% is for company moral (occasional gift card)

7% to the employee

so 7%X$6=$0.42

This is actually giving you and extra $.02 Congratulations!!!!

AZ EE said:

What you have to understand is $6 isn't $6. To explain it let me break it down,30% is for structured overhead (Utilities, rent and company supplies)

20% of every dollar is for taxes (yes businesses have to pain income tax too)

7% is to match what you pay in SS (Payroll tax)

23% is for management/secretarial overhead (To pay for the people that don't actually do any income work)

10% is for employee bonuses (might seem like a lot but the majority

3% is for company moral (occasional gift card)

7% to the employee

so 7%X$6=$0.42

This is actually giving you and extra $.02 Congratulations!!!!

Click to expand...

WELL SAID... all too many people forget about these things!

Just a side question to this topic. Who thinks having a PE is more important than getting a Master's or vice versa? I should still aim to get my Master's anyways...

I wouldn't get your hopes up. My previous employer gave me a 3% raise, but I lost the ability to earn overtime at the same time (actually I lost OT a month before they gave me a raise). I was working for a small consulting firm and we worked a lot of OT, so I was essentially making less money after I passed the PE then I was before. I did get a decent raise in the end, but I changed jobs to get it.

3 years ago I had no PE, now I do.

I'm at same company making 50% more now.

So YES, passing the PE does help. It just takes time or a move to new company to realize the difference.

Every employer is different.

A government job will probably require or recommend it to move up to a higher pay grade and most consulting firms will give you a raise for getting your PE license, but some do not place as much importance as others.

If your not satisfied with your current salary, start sending resumes out. There are a lot of jobs available for qualified engineers!

As others have pointed out, as a PE you will have more responsibilities and more than likely will be expected to take on project manager duties. The increase in responsibilities and duties as a PE justifies an increase in pay.

Roadwreck - I had a similar experience. I was promoted to a salary position and expected to work 50-60 hours a week with no overtime. I left that Firm and now work for a Company where although I do not get paid time and a half for overtime, I do get paid for every hour I work.

my employer, means no, the reasons are

1. there are 4 levels in CE's in my current emplyment engineer 1 to 4.

2. The lead Project Manager CE is at 4th then

3. My Supervisor/Project Manager is at the 3rd level.

4. Im at this position at 2nd level.

5. Entry level is 1st.

THis means it is time for me to move on, FIND another employer if I pass! I have nowhere to go.

AZ EE said:

What you have to understand is $6 isn't $6. To explain it let me break it down,30% is for structured overhead (Utilities, rent and company supplies)

20% of every dollar is for taxes (yes businesses have to pain income tax too)

7% is to match what you pay in SS (Payroll tax)

23% is for management/secretarial overhead (To pay for the people that don't actually do any income work)

10% is for employee bonuses (might seem like a lot but the majority

3% is for company moral (occasional gift card)

7% to the employee

so 7%X$6=$0.42

This is actually giving you and extra $.02 Congratulations!!!!

Click to expand...

Umm... most of those are fixed costs or at least don't change with an increase in employee pay. Still, the tax perspective is significant!

Durango Dave said:

Just had an annual review. My boss said I've done an awesome job.
He told me I will get a 3% raise. I think that is low for an "awesome job"

He said that once I pass the PE, ( I took the test in April), I would see an increase of about $0.44 an hour.

I think this is way too low. My billing rate would jump $6.00, and I would only see $0.44.

Am I out of line? How much are people expecting to see.

your thoughts

Click to expand...

I worked for a company like the one you work for when I graduated college. Once I started getting wind of what some of the PEs there made, I started looking for a new job. Sorry to say it but that is how you will have to get your raise if you want one. The good thing is the market for engineers is really good right now.

I am not sure if the market for engineers is "really good right now". May be in LA but surely not in FL

anandmody said:

I am not sure if the market for engineers is "really good right now". May be in LA but surely not in FL

Click to expand...

Really?! I thought the market for engineers have always been pretty good, regardless of what state. At least you're not an architect... I don't think they're in very high demand.

Umm... most of those are fixed costs or at least don't change with an increase in employee pay. Still, the tax perspective is significant!

Click to expand...

IlPadrino as an employer you have to figure it this way, then if it does leave money left over this is where company profit sharing comes in.

Where's your sense of humor?

I feel the demand for Civil Engineers is more in the southWestern States than the other states.