Monday, December 6, 2021

I’ve been working for my millionaire friend for 4 years — she’s never given me a pay raise. My husband says I should be grateful

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Dear Quentin,

I have been working remotely part time as an independent contractor (aka Form 1099) for a friend for four years doing bookkeeping and admin work. When I started, she told me how much she pays and I was happy with the rate since it is more than I could make where I live. I don’t want to ruin this friendship. but I also don’t want to be a sucker.

I have been at the same hourly rate for the entire 4 years. She frequently tells me how she appreciates me, what a good job I do, and begs me not to leave. While the rate is more than I could make where I live, it is at least  20% less than she would have to pay for someone in her location. The hours are very flexible, and I am grateful for that.   

In 2021, she raised the wages of all her employees by 5% to 10% as her company is doing very well post-COVID. She has never offered to raise my rate. Admittedly, I have not asked for an increase. It is not a matter of her being  able to afford it. She is very wealthy — worth at least $20 million. Her company is very profitable.

My husband says I should be thrilled with what I make. My local friends say they think I am being taken advantage of. I am torn. 

Your thoughts?

Friend and Worker

You can email The Moneyist with any financial and ethical questions related to coronavirus at [email protected], and follow Quentin Fottrell on Twitter.

Dear Friend and Employee,

You’re not asking for a pay raise because you are friends, and you don’t want to ruin the friendship. She is not giving you a pay raise along with everyone else because you are friends, and she doesn’t want to ruin a good thing. Plus, she knows how grateful you are and that your friendship creates a mutually beneficial, if sometimes awkward, arrangement. 

Once you have entered a business relationship with a friend — whether as a partner or an employee — the balance of power is compromised. It’s no longer equal. Personalities and emotions are not part of a negotiation strategy. You should not act against your own best interests for the sake of a friendship — especially if that friendship has been irrevocably changed, and it has.

Why would she give you a pay raise if she doesn’t have to? That’s the bitter-sweet part of hiring a friend: priorities shift and boundaries are blurred. Real-world rules no longer apply. Sooner or later, one or both parties let their needs take a backseat. In this case, those needs are yours. If she respects you that much and is as grateful as she says, she would give you a raise.

Tell her you are happy with your job — if you are — and what you have contributed over these four years. Don’t mention the friendship. This is just business. Your time is valuable, and that’s what she is paying for. If she short-changes you, there won’t be much of a friendship or working relationship to salvage. It’s a win-win for both your self-respect and the value you put on your role in the company.

Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

The Moneyist regrets he cannot reply to questions individually.

More from Quentin Fottrell:

My married sister is helping herself to our parents’ most treasured possessions. How do I stop her from plundering their home?
My mom had my grandfather sign a trust leaving millions of dollars to two grandkids, shunning everyone else
My brother’s soon-to-be ex-wife is embezzling money from their business. How do we find hidden accounts?
‘Grandma recently passed away, leaving behind a 7-figure estate. Needless to say, things are getting messy’

This artical is first shown on marketwatchAuthor on date 2021-10-29 04:25:00
MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron’s, it is a subsidiary of Dow Jones & Company, a property of News Corp.

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