As I've said before in this space, most of us go to work to make money, not because we enjoy toiling behind a computer in a cramped space surrounded by people with IQs that are usually lower than that day's temperature. So it only makes sense that if we're forced to work, we want to earn as much money possible. Unfortunately, this is not the same goal your employer has.
Your employer would like nothing more than to get the maximum amount of high-quality work from you for the lowest possible price. If you think this isn't true, then ask yourself when was the last time you got a raise that outpaced the rate of inflation (if you've even gotten a raise lately).
So your goals (goof off as much as possible and make as much money as possible while doing it) and your employer's goals would seem to be at odds with each other. What does this mean for you? Chances are, it probably means you'll be getting the same 0-4% raise that you've gotten for the last few years. Sure, you could quit and try working for a different company, but do you really think there's a company out there that rewards goofing off by awarding 15% raises? (If you do know of such a company, email me immediately at employeemorale@gmail.com)
If you are lucky enough to get a raise (and believe me, there are people out there who won't be getting them this year), you will likely wind up getting less than a 5% bump in pay, even if your company's profits were so ridiculously high that even the oil companies were jealous (and if your company did rake in enormous profits, it would still tell you that money is tight and raises would reflect that).
Let's say that you're told that for all your hard work, sacrifice, and usually legal efforts, you'll be rewarded with a 3% raise. For someone making $20,000 per year, that works out to an extra $600 per year, or $50 per month. At $30,000 per year, it is $900 more per year ($75 per month), at $40,000 per year, you're looking at $1,200 more ($100 per month), and at $50,000 per year, it'll be $1,500 more ($125 per month). If you make more than $50,000 per year, you're probably not reading this column.
As you can see, a 3% raise doesn't exactly afford you the finer things in life. In fact, it probably just barely covers the extra amount you have to pay each month due to rising fuel costs, higher energy bills, and the cable company finally realizing that you've been stealing cable from your neighbor for the last year. If you make $20,000, what good does an extra 50 bucks a month do? Or if you make $30,000, is that extra 75 bucks a month going to get you into a nice home? And don't forget, taxes will eat up a good portion of that raise, especially if the raise puts you into a higher tax bracket.
So we know that employers aren't cutting each other in line to give you more money. This is a fact of life across most professions. The real slap in the face comes when management tells you that money is tight and raises will be small, but then you see all these other things that the company is spending money on. Frivolous things. For example, they can only afford to give you a 2% raise, but there's plenty of money in the budget for about two dozen landscapers to make sure that there are plenty of pretty flowers all around the building, all year round. There's also apparently enough money for the flat screen plasma TV that welcomes people into your building (which only displays your company's name - at least throw the ball game on there!). Plus, don't forget the fancy artwork that hangs in the halls and conference rooms which seems to change every few months.
And then, to top it off, you stumble across information related to Upper-Upper-Upper-Upper-Upper Management, and how much they make (by the way, this is usually public information, you just need to know where to look). Does it make you feel any better to know that your company's top executives get bonuses that are greater than their million dollar salaries, while you struggle to keep your checking account in the black?
The next time you go to work, take a look around. Do you see things that your company is wasting money on, while at the same time telling you that there isn't much money for raises this year? Does this make you want to go that extra mile at work, in the hopes that next year maybe your manager will remember all your hard work and maybe give you 4%?
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4 comments:
Brian,
Good post. I would agree with you a lot. It's hard to change this system. Frankly, it’s a joke and pathetic how rich some people get. I might disagree with some comments though. People do work to make money, mainly because we do have bills to pay. However, if you told people that they could make 5K less and be happier in their jobs would they take the pay cut? I think most would. The reason we do get into the rat race of making money is because we aren't happy in our job. We have to do something while we are there, right? I’ll toast to that for sure. Most people want to be fulfilled in their careers and aren't all after the mighty buck.
The people I hear complain about money at my job always end up talking about things they can't afford: flat screen TV, new car, tropical vacation, etc. Seriously, that is why you want the raise?? I’m not speaking to you, but to my experiences in general. It isn't my business to tell people what to spend their money on, but aren't you just looking for extra bucks to spend on the same frivolous items you are slamming your employer for? Think about this too ($ amount aside). You are hiring someone to work on your house, your garden, your car, etc. Don't you also try and get the maximum quality of work done at the lowest cost? Do you give the workers a raise at the end if they pleasantly surprised you? I’m going to guess that most people answer those 2 questions with a YES for the former and a NO for the latter.
The frustrating thing for me does come around raise time. I think a lot of people just go through the day not doing much of anything and expect to get 10-15% raises. That is ridiculous. The problem is that the people that do work hard and put forth the effort are not getting more of a raise than the people that aren't. I don't know what group you fall under, but based on the fact you are writing an intelligent blog, you probably are a hard worker. What happened to the day where good workers were rewarded with nice raises, bonuses and/or promotions? I see too many people try and slide through the day and think they are entitled to large sums of money. Take a look around. Doesn’t it seem like the good workers are getting punished because of the slackers? I used to think it was a case of a few bad apples spoils the bunch, but it’s now shifted the other way. We are the few apples.
In the end, we all realize that the structure isn't fair. The rich keep getting richer and the divide between middle class and poor is shrinking. We have to make the changes, but we are trying to change a system that is bigger than all of us. Believe me, after reading this you are probably thinking I’m Corporate JOE! I couldn’t be further from it. I am a believer that each person can make a lot of changes in how they live and can feel happier and eventually make a few small changes in the corporate structure. In the end, we are very lucky in this country to be able to put enough food on the table, put a roof over our families and have some extra money left over to spoil our loved ones or ourselves from time to time. Don’t turn into a 1-person corporation.
I agree with my anonymous colleague, though I'd say there are fewer people who would take a 5k pay cut for happiness than you think It depends on what they're making currently. I might be happier in a different job, but at a pay cut suggested above...I'd be on welfare. Or working a 2nd job (I'm not a cube dweller, but I'm in an area of employ that can be equally soul-crushing at it's worst).
Brian's point about COL "raises" being out-done by rising fuel and COL expenses is true. Not supposed to be, but in most ways that matter, it is. Gas/fuel oil has gone up how much in the last year? More than 4%. This impacts supermarket prices(those semis don't run on soy...yet). This kind of trickle-down doesn't do much for the 24k and under crowd.
A final point about the 4% COL that "everyone" gets. I get 4% at my salary...my "boss" gets 4% at his salary, 15k more than me. I'd rather have HIS 4%. Daddy would like to pay off the loan on his 8 year-old truck this decade, instead of borrowing against it's value for the third time.
Great reading as always.
Hey Brian,
I do happen to make more than $50,000/yr but I still agree with what you're saying. I am not a manager or anything, just happen to have a degree in a skilled field. However, I have worked in many situations such as the one you describe and honestly I am amazed at how some companies fail to realize that it would cost them little to stay above the average pay scale for the standard employee and corner the market on dedicated workers. Anyway, I think the biggest slap in the face is when you get that denim shirt with the company logo, but no raise - ouch!
Excellent post Brian. Very good points. Annual reviews used to get the job done where you knew that every year you would have a sit down with your boss to discuss the previous years work and then negotiate a raise. That seems to happen less and less now and employees are having to be more proactive about raises then ever before. This can be a very hard and tricky thing to do since you know it is a subject your boss would like to avoid but unfortunately this seems to be an increasing trend in the workplace.
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