It's my experience that getting a pay rise in the same job is rather difficult in small/medium sized companies. The only way I have so far accomplished it is to move. Opinions tend to be quite viscous, it takes a lot of energy applied over a long period of time to change a view point. First impressions count. Just like your parents will tend to always see you as a child, your boss will tend to see you as the person you were when you joined. The dynamics of this situation are so stable over time that it can push common sense to breaking point. I was recently underpaid by £10,000 according to the market rate, yet could not negotiate even an inflation matching rise in pay. Like many things this is a battle between competing forces, your desire for enough money to make your life comfortable, the companies drive for more profit, a person's desire to avoid having to think, a person's drive for power and respect, etc. If you find yourself playing a game you cannot win, change the game and move on.