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Are Skimpy Raises the New Normal?
Lam1969 writes "Computerworld just released their latest salary survey, and it finds that IT worker bees have once again only received small raises. The article notes, "IT raises still lagged slightly behind the average of about 3.2% for all U.S. workers as reported by the Bureau of Labor Statistics. While the majority of respondents (69%) said their 2004 base salary increased from one year ago, 31% experienced either no change in salary or had their pay cut." It goes on to quote LAN specialist Stephen Noisseau as saying, "I guess that's the way the cookie crumbles ... I'll take 4% over nothing. We're getting basically cost-of-living raises.""
We're getting basically cost-of-living raises.
Welcome to the way the rest of the universe works. Be glad you even got that. Most poeple have to find new jobs to get a raise at all.
Don't worry, I'm sure another bubble will be along to get you a 100% raise every 6 months like the good ol days.
- Adam L. Beberg - The Cosm Project - http://www.mithral.com/
Took a 30% pay cut two years ago, as nothing was available but a job 40 miles from home. Only one pay increase in two years, 1.15% which has more than been eaten by the rise in petrol cost.
It's simple Supply-Demand (Keynesian economic theory), when workers with a particular skill set are not in demand or supply excedes demand, there's not much rationale to give workers higher pay. Of course some increase is a sign of goodwill and encourages workers, but tell the beancounters.
Oh, and the execs got about 6% pay increase this year. Can't have that lot starving, can we?
A feeling of having made the same mistake before: Deja Foobar
Is it really a valid expectation to automatically get a salary increase? What happened to earning it? I feel pretty confident in saying that 69% of all workers didn't perform above average, so why should they be expecting a reward?
Slashdot - where whining about luck is the new way to make the world you want.
And keep in mind that a 0% raise is actually a pay cut, due to inflation. If you're not averaging about a 2% raise every year, your income in terms of buying power is declining.
I'll say once again:
Blue Collar = Organized Labor
White Collar = Disorganized Labor
Democracy is about working together to be treated fairly. Why should corporate profits leap by huge percentages while employee salaries do not?
Abstinence is a government conspiracy. www.SafeSexZone.co
After 2 years of unhappiness and general lack of hope in my current job, my group has a 30% turnover.
I remember hearing over and over that raises where only 2% for the last couple years. In fact, due to cost cutting they stopped collecting the trash cans on a daily basis. Now, instead of individual trash cans in our cubes, we have communal trash cans in the hallways, which are emptied once a week. BTW, we keep having record quarters.
So, when my boss's boss threatened to give me a bad review and no raise, I shrugged my shoulders and informed him that "My annual 2% raise is close enough to 0% that it didn't matter." I then proceeded to tell him that he had a structural problem. The lack of raises provided him with no "stick" and the lack of advancement opportunities provided him with no "carrot."
I have already decided to leave as soon as the first of the year comes around (and I quality for the End-of-Year bonus).
The funny thing. I honestly believe I got a 2% raise last year. That is what everyone says the raises were. I was doing some record keeping this weekend and noticed that I actually got a 8.25% raise last year.
Sometimes perception and reality don't match.
I am still leaving though.
I give my Chinese sweatshop kids a raise now and again, usually about a cent a month extra, sometimes a dollar bonus if they've been churning out consistently good shoes. It keeps moral up and gives them the belief that they might one day make enough money to break free of their shackles. I would warn bosses against so called 'perk raises' for example taking the number of tardiness lashings down might seem like a good idea but I've had problems when the workers start boasting about it and eventually UNICEF or someone finds out that we actually _are_ lashing them. That was a pretty costly lawsuit. In all I would say treat em mean and keep em keen. Its far better to threaten a wage reduction for poor work than to offer a raise for good work, instead just tell them that you're only paying the Pakistani kids half the price and that will get them feeling pretty good.
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Salaries in India to go up by 11.4 percent, possibly the highest in the whole world.
As a small mobile software developer in India currently looking for fresh business and perhaps adding employees other than myself to the business, this news makes me have second thoughts!
What always gets me every time we have a discussion about raises is that any call for pay increases to the rank and file is met with fierce opposition by those who claim it will obliterate the economy via inflation and will rob shareholders of their rightful gains while sending corporations reeling into bankruptcy.
So, I must pose the question, why is it perfectly fine for managers (especially those in the upper echelons) hand out massive raises to themselves and their cronies that are often the equivalent of several times the average salary of their subordinates? The typical CEO makes 450 times as much as the average person they employ. Even when business is bad, layoffs are rampant and wages stagnant, the raises for the managers continue - because according to them, poor performance is always the fault of the lower rungs, while good quarters are always thanks to their expert stewardship.
The auto parts company Delphi is asking for their non-management staff to accept 50-69% pay cuts, (these workers were described as being basically worthless in a speech the CEO gave two weeks ago) while the managers that have presided over the company sliding into bankruptcy are going to get massive raises.
Please explain who spending tons of money to compensate workers who are being asked to produce more per hour, work more hours and accept fewer fringe benefits like comprehensive healthcare coverage is some evil, evil thing that shall destroy every company and drive them into bankruptcy, while distributing the same amount of money to the higher ups is no problem whatsoever?
Unfortunately, there's too many saps out there who complain about shit raises, but won't go out and do something about it. Don't like your raise? Get a new job, and then when you leave, tell them exactly why. If more people did that, raises would be higher for everyone.
The cake is a pie
This is what I don't understand. If you feel that a pay-cut is unfair, why do you stay with the company?
Health insurance. It isn't the only reason, but it is decent sized. In particular pre-existing ailments. A lot of health insurance plans will not cover pre-existing conditions until you've paid 12 months worth of fees.
For anyone with a kid or spouse with a pre-existing condition, the thought of no coverage, especially if the condition could dramatically worsen, is enough to keep them from even considering switching employers.
Which, is why I believe employeer-provided health insurance is evil. I don't believe in state-provided insurance either for all the inefficiences that come with socialism. I do advocate for personal health insurance, where you are personally responsible for each dollar spent for fees and it has no ties to your employer or any other group that would use it to coerce you into acting against your own best interests.
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