What's everyone's take on annual raises? Raises should be based off performance, accountability, relative worth, etc... Not that you've reached your anniversary date and haven't been fired.

In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now.

jurupa wrote:

In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now.

now days job hopping aint happening too much at all. I know the consulting firm I work with froze all salaries 6 months ago and none of us expect any raises for this year either

jurupa wrote:

In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now.

this

dolly lahmuh wrote:

jurupa wrote: In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now. this

The annual raises provided by the company I work for are based on performance. If you rank low, you get nothing and go on probation. And this is for "executives", non-hourly employees.

They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary.

Samhain wrote:

dolly lahmuh wrote: jurupa wrote: In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now. this The annual raises provided by the company I work for are based on performance. If you rank low, you get nothing and go on probation. And this is for "executives", non-hourly employees.

well i was referring to the basic idea of annual pay raises but yeah.

oh and just cuz' there's a chance to plug this in, here ya go: http://en.wikipedia.org/wiki/Efficiency_wages

LetsGetReal wrote:

What's everyone's take on annual raises? Raises should be based off performance, accountability, relative worth, etc... Not that you've reached your anniversary date and haven't been fired.

performance, accountability, relative worth..yes..to all of the above.

Short of being in a union we all have to earn our keep every day we work.

Ssushi wrote:

They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary.

Don't you believe that inflation is perpetuated because of such things as annual raises?

The point I"m trying to get at is that the reason someone should get a raise is that they deserve a raise. I would never ask for a raise unless I deserved it not because of an anniversary date. Yearly raises causes people to price themselves out of the market and I strongly suggest that keeping the same salary could increase the desire to be frugal and motivate. Now this doesn't mean that high performers or the such shouldn't get raises. It merely sorts out the bad and the good, which in all actuality creates a positive attitude to move forward, and do more. People would return to the time when they took pride in their work...Which is one of the main problems facing the majority of Americans I believe.

Is this not agreeable? I truly can't stand yearly raises unless one is truly progressing every year...

LetsGetReal wrote:

Ssushi wrote: They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary. Don't you believe that inflation is perpetuated because of such things as annual raises? The point I"m trying to get at is that the reason someone should get a raise is that they deserve a raise. I would never ask for a raise unless I deserved it not because of an anniversary date. Yearly raises causes people to price themselves out of the market and I strongly suggest that keeping the same salary could increase the desire to be frugal and motivate. Now this doesn't mean that high performers or the such shouldn't get raises. It merely sorts out the bad and the good, which in all actuality creates a positive attitude to move forward, and do more. People would return to the time when they took pride in their work...Which is one of the main problems facing the majority of Americans I believe. Is this not agreeable? I truly can't stand yearly raises unless one is truly progressing every year...

I can see what you mean, but inflation won't stop on this basis, thus each year you need to work harder and harder for the same effective wage.

If you want a rise above inflation, indeed it should be performance related, but when you start with a company you accept a deal: This much time and effort for this much money, without inflation related wage increases, you yearly accept a pay cut, based on your original deal of time and effort.

There are many more factors which influence inflation, greedy companies, the way in which Wall Street requires "growth" etc...

Ssushi wrote:

LetsGetReal wrote: Ssushi wrote: They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary. Don't you believe that inflation is perpetuated because of such things as annual raises? The point I"m trying to get at is that the reason someone should get a raise is that they deserve a raise. I would never ask for a raise unless I deserved it not because of an anniversary date. Yearly raises causes people to price themselves out of the market and I strongly suggest that keeping the same salary could increase the desire to be frugal and motivate. Now this doesn't mean that high performers or the such shouldn't get raises. It merely sorts out the bad and the good, which in all actuality creates a positive attitude to move forward, and do more. People would return to the time when they took pride in their work...Which is one of the main problems facing the majority of Americans I believe. Is this not agreeable? I truly can't stand yearly raises unless one is truly progressing every year... I can see what you mean, but inflation won't stop on this basis, thus each year you need to work harder and harder for the same effective wage. If you want a rise above inflation, indeed it should be performance related, but when you start with a company you accept a deal: This much time and effort for this much money, without inflation related wage increases, you yearly accept a pay cut, based on your original deal of time and effort. There are many more factors which influence inflation, greedy companies, the way in which Wall Street requires "growth" etc...

Inflation adjustments (essentially COLA) are based on highly questionable estimates of inflation so to tie any wage directly to that wouldn't be prudent.

Not to mention that inflation isn't guaranteed. What happens when there is deflatino..do wages automatically adjust down? That would perpetuate the "downward spiral" much quicker

invisiblehand wrote:

Ssushi wrote: LetsGetReal wrote: Ssushi wrote: They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary. Don't you believe that inflation is perpetuated because of such things as annual raises? The point I"m trying to get at is that the reason someone should get a raise is that they deserve a raise. I would never ask for a raise unless I deserved it not because of an anniversary date. Yearly raises causes people to price themselves out of the market and I strongly suggest that keeping the same salary could increase the desire to be frugal and motivate. Now this doesn't mean that high performers or the such shouldn't get raises. It merely sorts out the bad and the good, which in all actuality creates a positive attitude to move forward, and do more. People would return to the time when they took pride in their work...Which is one of the main problems facing the majority of Americans I believe. Is this not agreeable? I truly can't stand yearly raises unless one is truly progressing every year... I can see what you mean, but inflation won't stop on this basis, thus each year you need to work harder and harder for the same effective wage. If you want a rise above inflation, indeed it should be performance related, but when you start with a company you accept a deal: This much time and effort for this much money, without inflation related wage increases, you yearly accept a pay cut, based on your original deal of time and effort. There are many more factors which influence inflation, greedy companies, the way in which Wall Street requires "growth" etc... Inflation adjustments (essentially COLA) are based on highly questionable estimates of inflation so to tie any wage directly to that wouldn't be prudent. Not to mention that inflation isn't guaranteed. What happens when there is deflatino..do wages automatically adjust down? That would perpetuate the "downward spiral" much quicker

Would you agree that annual raises help the rise of inflation on a small scale? Because how many companies do annual raises? I would say most and these companies more than likely adjust prices/jobs/etc...because of it. I'm just a little bitter because I feel the respect and motivation for raises has been lost in the mainstream America. It use to be a privilege to those who were deserving not the day every year you got a minimal raise.

beachbum bob wrote:

jurupa wrote: In general I have no problem with annual raises really. As they are generally cost of living "raise", as well as to provide you an finical incentive to stay with the company as a lot of people job hop nowadays so its harder to keep employees around now. now days job hopping aint happening too much at all. I know the consulting firm I work with froze all salaries 6 months ago and none of us expect any raises for this year either

I was more referring to when the economy was good not now. I have no doubt a lot of companies are freezing raises as well as a fair number cutting back on salaries. And that job hopping has slowed down to almost nothing.

LetsGetReal wrote:

invisiblehand wrote: Ssushi wrote: LetsGetReal wrote: Ssushi wrote: They should be automatic and in line with inflation, thus keeping you inline with your originally contracted salary. Don't you believe that inflation is perpetuated because of such things as annual raises? The point I"m trying to get at is that the reason someone should get a raise is that they deserve a raise. I would never ask for a raise unless I deserved it not because of an anniversary date. Yearly raises causes people to price themselves out of the market and I strongly suggest that keeping the same salary could increase the desire to be frugal and motivate. Now this doesn't mean that high performers or the such shouldn't get raises. It merely sorts out the bad and the good, which in all actuality creates a positive attitude to move forward, and do more. People would return to the time when they took pride in their work...Which is one of the main problems facing the majority of Americans I believe. Is this not agreeable? I truly can't stand yearly raises unless one is truly progressing every year... I can see what you mean, but inflation won't stop on this basis, thus each year you need to work harder and harder for the same effective wage. If you want a rise above inflation, indeed it should be performance related, but when you start with a company you accept a deal: This much time and effort for this much money, without inflation related wage increases, you yearly accept a pay cut, based on your original deal of time and effort. There are many more factors which influence inflation, greedy companies, the way in which Wall Street requires "growth" etc... Inflation adjustments (essentially COLA) are based on highly questionable estimates of inflation so to tie any wage directly to that wouldn't be prudent. Not to mention that inflation isn't guaranteed. What happens when there is deflatino..do wages automatically adjust down? That would perpetuate the "downward spiral" much quicker Would you agree that annual raises help the rise of inflation on a small scale? Because how many companies do annual raises? I would say most and these companies more than likely adjust prices/jobs/etc...because of it. I'm just a little bitter because I feel the respect and motivation for raises has been lost in the mainstream America. It use to be a privilege to those who were deserving not the day every year you got a minimal raise.

automatic raises are more an indication of inflation..not a cause. Inflation/deflation is a purely monetary phenomenon.

Salaries don't decrease due to deflation though...

LetsGetReal wrote:

Salaries don't decrease due to deflation though...

The U.S has a low steady inflation rate. This encourages spending and is overall the best for an economy like ours.



qrc.depaul.edu/djabon/cpi.htm#3

Yes, but in certain sectors costs continue to increase not decrease which would leave room for annual raises. Let's take medical for example and outpatient imaging centers where reimbursement rates were cut. The demand hasn't diminished but the return has which causes halts on raises, benefits, etc...What about these sectors?

I'll have to read your link though...