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Worker pay isn’t keeping up with inflation

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Re: Worker pay isn’t keeping up with inflation

#191

Post by [deleted] »

skywal_l wrote: post #156
pabs3 wrote: post #141

Earlier quoted context omitted.

Late last century inflation and then wages keeping up with that inflation enabled a generation of folks to pay off their first mortgages quite quickly.

Absolutely but this also assumes a fairly "elastic" housing market able to absorb the demand. I am not sure the market is still able to do that with the NYMBYsm and malthusianism around new housing. In high tension area, the price could quickly increase faster than general inflation. I believe CPI does not include house prices.

[deleted]

Re: Worker pay isn’t keeping up with inflation

#192

Post by onion2k »

coldtea wrote: post #81
onion2k wrote: post #67

Earlier quoted context omitted.

From the other side, whenever a member of my team has come to me asking to match an offer I've always refused and wished them well in their new role. If someone is unhappy enough to start job hunting rather than talking to me then it's a clear sign that they'll leave soon regardless of any pay rise. Psychologically, every pay increase makes someone happy for a short time, and then they get used to it and they start t…

Nice trick to keep all the leftover washed-up people who would never dream of anything bigger and probably don't have the skills for it...

That's certainly one way to look at it. Another is that people who work on my team build the skills and confidence that enables them to move up in their careers, and at some point they outgrow what I can offer. I'm usually quite happy that they've been able to do that.

If someone has a chance to take another step up in their career that's a good thing. If I offer them more money to stay at the same level they'd be silly to accept that.

Re: Worker pay isn’t keeping up with inflation

#193

Post by skywal_l »

onion2k wrote: post #183
skywal_l wrote: post #72

Earlier quoted context omitted.

And when someone come to you asking for a raise, how often do you give it?

Practically always, but never just more money for the same work. People dont ask very often because I've been lucky enough to be able to give people decent cost-of-living raises, recognition-of-effort raises, and promotions quite regularly. When someone asks for more money it's pretty much always the first step to a promotion, or at least some sort of additional responsibility that comes with a pay increase. The iron…

I think the reasonable good-faith assumption in this discussion about inflation is that people are asking for a raise not to make more money but just to keep up with prices. So in reality, they are asking for the same amount of purchasing power.

So giving the same purchasing power for more responsibility would probably not look like a good deal for most (unless responsibility is your thing which is the case for some people).

Re: Worker pay isn’t keeping up with inflation

#194

Post by the_gipsy »

onion2k wrote: post #67
AnthonyMouse wrote: post #54

Earlier quoted context omitted.

> If you want a raise the best thing you can do is find a new job. Note that this doesn't always even involve taking it. Go get a job offer that pays better and bring it to your boss. If they want to match it, great. If they don't, bye.

From the other side, whenever a member of my team has come to me asking to match an offer I've always refused and wished them well in their new role. If someone is unhappy enough to start job hunting rather than talking to me then it's a clear sign that they'll leave soon regardless of any pay rise. Psychologically, every pay increase makes someone happy for a short time, and then they get used to it and they start t…

> If someone is unhappy enough to start job hunting

What if salary is the only thing they are unhappy about?

Re: Worker pay isn’t keeping up with inflation

#195

Post by LatteLazy »

Tk6f3A6JkSxViFM wrote: post #130
LatteLazy wrote: post #100

This will be unpopular... If you want to make good pay, you have to make it happen. You have to change jobs occasionally (every 2 years). You have to suck up a bit to managers. You have to be at least average at your job. You have to manage your CV. And you have to negotiate. I'm not saying this is right or fair or nice. I'm just saying the vast majority of people I've worked with don't do any of those things (except…

The vast majority of the people you've worked with are at least average at their jobs?

Actually yeah.

Average doesn't mean great. It might not even mean good tbh.

I've worked with a few terrible people who pull the average down so that helps.

Re: Worker pay isn’t keeping up with inflation

#196

Post by atoav »

wing-_-nuts wrote: post #20

We had an all-hands meeting recently where we got to submit anonymous questions. One of the questions was 'with inflation rising at 6%, will the company reconsider their 'standard' 2% raise?' The lady answering looks dead in the camera and goes 'Honestly? No' and goes on to talk about how we're reasonably competitive with the local market. Hey, credit where credit is due, at least she was a refreshingly straight shoo…

I think if you are taking a new job this should be one of your expectations as well: "Will the wage be coupled to inflation?"

Re: Worker pay isn’t keeping up with inflation

#197

Post by mellavora »

skywal_l wrote: post #156
pabs3 wrote: post #141

Earlier quoted context omitted.

Late last century inflation and then wages keeping up with that inflation enabled a generation of folks to pay off their first mortgages quite quickly.

Absolutely but this also assumes a fairly "elastic" housing market able to absorb the demand. I am not sure the market is still able to do that with the NYMBYsm and malthusianism around new housing. In high tension area, the price could quickly increase faster than general inflation. I believe CPI does not include house prices.

Risk is that rising inflation raises mortgage rates which makes housing unaffordable. You might be able to continue paying your mortgage because you locked in a low rate, so not see this as a problem (free house!)-- but if for some reason you want or need to sell you might find it more financially challenging than anticipated.

Re: Worker pay isn’t keeping up with inflation

#198

Post by onion2k »

lettergram wrote: post #87
onion2k wrote: post #67

Earlier quoted context omitted.

From the other side, whenever a member of my team has come to me asking to match an offer I've always refused and wished them well in their new role. If someone is unhappy enough to start job hunting rather than talking to me then it's a clear sign that they'll leave soon regardless of any pay rise. Psychologically, every pay increase makes someone happy for a short time, and then they get used to it and they start t…

Interesting, as a manager I encourage my team to apply and bring me other offers. I will even help with some minor prep. If they come to me with a better offer I’ll take it to my leadership and show their worth. If they fail, they know I cared enough to assist and trust me and are happy for their job. If they succeed they get a raise, but are more likely to stay and work harder knowing they can trust me and can colla…

If someone on my team comes to me asking for help getting a new role, either in my team or externally, I've always been very happy to do what I can for them.

Re: Worker pay isn’t keeping up with inflation

#199

Post by NoPicklez »

LatteLazy wrote: post #100

This will be unpopular... If you want to make good pay, you have to make it happen. You have to change jobs occasionally (every 2 years). You have to suck up a bit to managers. You have to be at least average at your job. You have to manage your CV. And you have to negotiate. I'm not saying this is right or fair or nice. I'm just saying the vast majority of people I've worked with don't do any of those things (except…

"You have to change jobs occasionally"

That is complete garbage.

What you mean is that you have to change jobs if you don't see the potential for growth and growth opportunities.

Re: Worker pay isn’t keeping up with inflation

#200

Post by 1penny42cents »

dgellow wrote: post #146

Surely a naive question, but is there a reason it isn’t standard practice to index salaries on inflation? That would make sense to me. But I know very little about the topic.

I've read that this mainly happens in periods of hyperinflation. But that would mean 50% inflation month-over-month, so way more than what we're seeing or will likely see in the near future for developed countries. Not sure why it's not standard outside of that, probably because companies don't want or need to.
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