Author Topic: Inflation, Raise Expectations, Greed  (Read 1848 times)

Steeze

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Inflation, Raise Expectations, Greed
« on: August 11, 2022, 06:46:20 AM »
I had my annual review yesterday and received a raise a few hundred short of an inflation adjustment. The nominal amount is in line with the last 3 years, but in real terms it is a net loss. This is the first time in 8 years working here that this has happened. Otherwise they said all the good things you can expect, thanked me for all that Iíve accomplished etc. etc.

I am already a bit sore as the flat rate increase is an ever decreasing percentage of my salary, but with inflation at 9.2% over the period, I am very disappointed. My responsibilities and professional liability have increased significantly over the last year and I donít feel this raise acknowledges that. There is no position above me to promote into. I am at the top of the organization aside from ownership, so these salary increases are all I have to continue to improve my position.

The other side of the coin is that I am from a humble background and the money is great in comparison to any other job Iíve had, and is very reasonable for my location and experience, but not necessarily for my role & responsibilities. I feel like I should appreciate where I am at and be grateful I have a good life rather than be upset over trivial amounts of money.

Regardless, part of me wants to throw my hands up and say give me more or I quit, but the idea of looking for another job makes me cringe. Also, I am not really sure I could find better compensation elsewhere. I just want to work a few more years and be done with this career altogether, I just hate the idea of stagnation. Feels like I am spinning my wheels.

Otherwise the job is fine, the people are good, I do not mind coming to work at all, and it can even be engaging at times.

Am I just being greedy or what? Does every professional hit a ceiling at some point and that is it? Cost of living adjustments and a, ďgood jobĒ from here on out?


ChpBstrd

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Re: Inflation, Raise Expectations, Greed
« Reply #1 on: August 11, 2022, 07:25:39 AM »
Although CPI was ~9% in June, average wages rose by much less than that: 5.24%. So it's not just you who is receiving a raise less than the rate of inflation. You're actually part of a statistic.




Sibley

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Re: Inflation, Raise Expectations, Greed
« Reply #2 on: August 11, 2022, 08:21:22 AM »
It's not greed to expect to paid a fair wage for your work. What are salaries for your role at other companies? That's your guidepost.

"is very reasonable for my location and experience, but not necessarily for my role & responsibilities"

^ you're being underpaid. Yeah, job searching sucks, but do it anyway. You don't actually have to accept an offer if you don't want to. Askamanager.org is helpful.

zolotiyeruki

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Re: Inflation, Raise Expectations, Greed
« Reply #3 on: August 11, 2022, 09:06:50 AM »
Here's my advice:  Brush off your resume and start interviewing for a new job.  Here's why:
1) You'll find out what you're actually worth
2) You'll find out what jobs are available out there.  Heck, you might find something that is more personally interesting!
3) You'll refresh those interviewing skills, which are good to have in any case
4) You might find a higher-paying job that you'll enjoy more, and decide to switch

Note: just because you're interviewing for other jobs doesn't mean you have to actually take a new job.  But it will give you valuable insight into what the market is like.  If you find that you're being underpaid (via a job offer), you can take that information to your boss and say "I believe I am worth a $X/year, because this is what other companies pay people in my role."  If the boss declines to give you the requested raise, you can then choose to suck it up and stay, or leave for greener pastures.  If the boss decides to grant your request, yay!  A few years ago I did something similar--interviewed with a couple of other companies, got an offer, and took it to my boss (at his request, actually).  He beat the offer by a substantial amount in order to convince me to stay.  Lots of other people don't have the same luck, but you're no worse off for having tried.

The thought of jumping to a new job can be intimidating, but this is a very normal thing.

GuitarStv

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Re: Inflation, Raise Expectations, Greed
« Reply #4 on: August 11, 2022, 09:12:19 AM »
It's very rare for an employer to pay employees what they're worth.  The SOP is to underpay with the assumption that you'll lose some of the very best to job hopping, but that most employees are too lazy to take the effort to search out a new job that will pay them what they're worth.  The interesting thing is that the same company that refuses to give employees reasonable wages will usually happily pay the higher market rate salary for a new employee that they need to make up for the shortcomings of their shitty raise policy.

If you don't job hop regularly, you will be underpaid most of the time.  Companies tend to reward disloyalty . . . so usually leaving and then coming back will net you a much higher salary than staying in a position.

jrhampt

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Re: Inflation, Raise Expectations, Greed
« Reply #5 on: August 11, 2022, 12:06:29 PM »
Here's my advice:  Brush off your resume and start interviewing for a new job.  Here's why:
1) You'll find out what you're actually worth
2) You'll find out what jobs are available out there.  Heck, you might find something that is more personally interesting!
3) You'll refresh those interviewing skills, which are good to have in any case
4) You might find a higher-paying job that you'll enjoy more, and decide to switch

Note: just because you're interviewing for other jobs doesn't mean you have to actually take a new job.  But it will give you valuable insight into what the market is like.  If you find that you're being underpaid (via a job offer), you can take that information to your boss and say "I believe I am worth a $X/year, because this is what other companies pay people in my role."  If the boss declines to give you the requested raise, you can then choose to suck it up and stay, or leave for greener pastures.  If the boss decides to grant your request, yay!  A few years ago I did something similar--interviewed with a couple of other companies, got an offer, and took it to my boss (at his request, actually).  He beat the offer by a substantial amount in order to convince me to stay.  Lots of other people don't have the same luck, but you're no worse off for having tried.

The thought of jumping to a new job can be intimidating, but this is a very normal thing.

Absolutely.  This is what I've been doing for the past few months.

lucenzo11

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Re: Inflation, Raise Expectations, Greed
« Reply #6 on: August 11, 2022, 12:21:16 PM »
I've never known a company to give out cost of living increases in line with inflation, especially at the level we have seen recently. Companies will try to give a little more for the past year but if they were to match inflation then that's a 9% increase on their labor costs. Depending on what services or products they provide, that could mean increasing prices by the same amount to maintain profitability. Companies don't like to do this because then their consumers may look elsewhere or buy less. I'm not saying that companies should short their employees, it's more just that most companies will try to pay the minimum to maintain their employees.

Since you don't know the market for your services, consider going to interview elsewhere. List the high end of your salary expectations and see what happens. If you get an offer, then you can consider whether to leave or not. Or bring the offer to your employer and ask them to match it. This tactic, when executed properly, can be very beneficial as you maintain the job you have (and like) and get paid more. I did this recently with my employer and in the end my manager was somewhat happy I did it because HR kept refusing to consider off cycle raises despite the hot job market and claimed the company was paying people at the top of the market. By me going to them with an offer, and some other people leaving for higher paying jobs, they had to re-evaluate and ended up giving out some other raises too.

I really don't like that job hopping or the threat of job hopping has to be the way to maintain proper wages but unfortunately that is the job culture we live in now.

clarkfan1979

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Re: Inflation, Raise Expectations, Greed
« Reply #7 on: August 23, 2022, 02:02:03 PM »
Here's my advice:  Brush off your resume and start interviewing for a new job.  Here's why:
1) You'll find out what you're actually worth
2) You'll find out what jobs are available out there.  Heck, you might find something that is more personally interesting!
3) You'll refresh those interviewing skills, which are good to have in any case
4) You might find a higher-paying job that you'll enjoy more, and decide to switch

Note: just because you're interviewing for other jobs doesn't mean you have to actually take a new job.  But it will give you valuable insight into what the market is like.  If you find that you're being underpaid (via a job offer), you can take that information to your boss and say "I believe I am worth a $X/year, because this is what other companies pay people in my role."  If the boss declines to give you the requested raise, you can then choose to suck it up and stay, or leave for greener pastures.  If the boss decides to grant your request, yay!  A few years ago I did something similar--interviewed with a couple of other companies, got an offer, and took it to my boss (at his request, actually).  He beat the offer by a substantial amount in order to convince me to stay.  Lots of other people don't have the same luck, but you're no worse off for having tried.

The thought of jumping to a new job can be intimidating, but this is a very normal thing.

For some organizations, they might only be allowed to provide a specific dollar amount over x, with another competing offer in hand. It's might be part of their process, as an organization. I would advise against asking for a salary adjustment without another competing offer in hand.

MayDay

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Re: Inflation, Raise Expectations, Greed
« Reply #8 on: August 23, 2022, 07:39:57 PM »
I agree that you can either deal or interview.

Most companies can't or aren't giving raises to meet last year's inflation. They also give bigger than inflation raises in years with low/no inflation.

My H is a senior IC similar to what you described - no more promotions left and at the top of the salary band.  It's is what it is..... Either get ok with that or look elsewhere.  At some point you max out.

bryan995

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Re: Inflation, Raise Expectations, Greed
« Reply #9 on: August 23, 2022, 10:08:22 PM »
Start interviewing and leave when you find the multiple roles that will pay you significantly more :)

Never stay put once growth slows (either professional or compensation).
« Last Edit: August 24, 2022, 10:28:34 AM by bryan995 »

Steeze

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Re: Inflation, Raise Expectations, Greed
« Reply #10 on: August 25, 2022, 12:45:42 PM »
Follow up --

Had the chance to have lunch with one of the owners one on one, he asked if everything was OK, he got the sense that I wasn't happy, wasn't sure if it was about the raise or maybe other personal issues. I explained my position and a few days later he scheduled another lunch with the other owners and I. They bumped me up again to what I was hoping for originally, didn't even have to ask. Sometimes it all works out.

2Birds1Stone

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Re: Inflation, Raise Expectations, Greed
« Reply #11 on: August 25, 2022, 12:53:04 PM »
Love it when a plan comes together, congrats.

JAYSLOL

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Re: Inflation, Raise Expectations, Greed
« Reply #12 on: August 25, 2022, 01:04:05 PM »
Follow up --

Had the chance to have lunch with one of the owners one on one, he asked if everything was OK, he got the sense that I wasn't happy, wasn't sure if it was about the raise or maybe other personal issues. I explained my position and a few days later he scheduled another lunch with the other owners and I. They bumped me up again to what I was hoping for originally, didn't even have to ask. Sometimes it all works out.

Hey, thatís good to hear! 

mistymoney

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Re: Inflation, Raise Expectations, Greed
« Reply #13 on: August 25, 2022, 04:58:21 PM »
Awesome!

zolotiyeruki

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Re: Inflation, Raise Expectations, Greed
« Reply #14 on: August 25, 2022, 05:52:08 PM »
Way to go! That is awesome news

Zikoris

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Re: Inflation, Raise Expectations, Greed
« Reply #15 on: August 26, 2022, 02:26:14 PM »
My recent raise matched inflation, but given I haven't really been experiencing inflation, I feel like I made out pretty well.

lifeisshort123

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Re: Inflation, Raise Expectations, Greed
« Reply #16 on: August 26, 2022, 04:28:11 PM »
I got a promotion that, when coupled with last year probably equals 2020 levels over two years.  It also comes with extra responsibilities, so it could be said I am working harder to make what I was making 2 years ago.

Wages statistically are NOT keeping up with inflation.  Thatís why inflation is so poisonous to the economy.  It literally makes quality of life lower.

Luckily, there are some ways to insulate yourself from the worst aspects of inflation - if you own your home for example, instead of have to worry about soaring rents.  But on the other hand, many other costs are simply more expensive - and depending on the item, are far in excess of inflation.