Why I’m not excited about my next raise
Not even a little excited. The problem is that last year the company that I work for implemented some nifty, handy-dandy, employee evaluation software. Great for the company. Bad for the employees.
Not one employee that I’ve talked to received a raise that exceeded 2.5%. That’s not so great. Let me tell you why.
Inflation hovers somewhere around 3-4%. Inflation is the measure of growth in costs of items. So, if the costs of items grew by 3-4% last year, and I received a raise of 2.5%, I’m actually losing 0.5-1.5% over last year.
Obviously, some companies cannot afford to give all employees raises that are astronomical. Some employees are at the near the top of their salary range and as such are unable to get a higher raise. However, a raise that at least matches the inflation rate would certainly be nice. I dare say it should almost be required.
Again, this year, they are using the same software to “assess” our work and determine salary ranges and raises. Again, I think there will be some unhappy employees who will be losing money year to year because of a sub-inflation pay raise.
And that is why I’m not excited about my next raise. How’s your raise looking this year?
Technorati Tags: pay raise, pay scale, salary range, raise, inflation, inflation rate
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golbguru said,
Wrote on September 27, 2006 @ 3:25 am
“loosing 0.5-1.5% over last year” ? Man…that employee evaluation software must really suck. I am pretty sure the management knows that the software sucks…so may be they are just trying to piss people off work. Keep an eye on the situation.
me said,
Wrote on September 28, 2006 @ 1:12 pm
Been there, got the t-shirt. A job where the pay doesn’t keep pace with inflation year after year is not a place to stay IMHO. One year may be ok, but several in a row is why I left my last job (well, not the only reason, but lack of pay was a big one).