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02/03/2015

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These are good points Jim and the truth is even more brutal. Even without cuts, annual increases in many parts of the country haven't kept up with real cost of living for more than a decade. This means people making more every year are actually making less.

And...

Just looking at the Social Security Maximum income increase over the past 15-20 years if you didn't significantly beat Cost of Living in wages increases, you are even further down.

And...

Many people took the "temporary" cuts you wrote about. There are a lot of people making less, while corporate profits in many cases are the best they've been in years.

Compensation professionals may need to, as a group, state a position that broad-based staff increases need to be addressed. It would be great to see an organization like WorldatWork break away from the "survey data" dictate and advocate for more strength in compensation as a whole. It seems unlikely though....

Companies have discovered they don't have to make employees "whole" since turnover is low. Why pay more if you don't have to? Also employees that survived the layoffs and picked up extra responsibilities as a result won't see increases for that either. Companies are finding they can get more done for less cost.

Perhaps this has something to do with a great deal of slack in the labor force
http://www.gallup.com/opinion/chairman/181469/big-lie-unemployment.aspx
which, in turn, might just have something to do with the federal government's refusal to enforce immigration laws
http://www.pewresearch.org/fact-tank/2014/11/18/5-facts-about-illegal-immigration-in-the-u-s/

Don't know what I could add to those thought-provoking comments by Dan, Jacque and Tony.

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