Posted on 06/26/2016 5:57:44 AM PDT by grey_whiskers
Annual pay raises don't work. The salary increase serves two purposes: to motivate workers and to keep employees from leaving for a better-paying job. In its current form, the traditional raise does neither of those things very well.
"You can't really do a lot with the annual raise," said Evren Esen, director of survey programs at the Society for Human Resource Management.
When the economy is decent, annual pay adjustments come in at 1 percentage point or 2 percentage points ahead of inflation for a given year.
That doesn't go far. Employees expect to get at least the cost of living adjustment, and a measly 2 percent increase in pay doesn't do much to encourage or change employee behavior.
(Excerpt) Read more at msn.com ...
GE is the original champion of offshoring to the Third World, with the lying excuse "we didn't give them lifetime employment, but gave them lifetime employability." While Jack Welch was given a lifetime pension of $2 million / year upon retirement. He's the same vermin who divorced his wife to run off with the then-Harvard Business Review chick who interviewed him (who, if I recall correctly, slept with him during the interview process). Yeah, what's the labour force participation rate now, you autofellatory scum?
And not GE and its HR flying monkeys are trying to stampede management (who are a bunch of mindless selfish lemmings) into eliminating annual raises ... supposedly to reward the highest performing workers. But really to save more money for vermin like Jack Welch. Notice how underperforming EXECUTIVES never get fired, and get gobs of cash when the leave the company?
you forgot- they pay no corporate taxes, own NBC/MSNBC and, oh yeh, their CEO Jeff Immelt was on obama’s job commission in 2008..
Were you one of the ten percent?
Asking for raises backfires enough it’s not a viable option.
Paltry annual raises don’t address one’s ongoing increasing expenses.
That leaves leaving as the only reliable way to earn more without risk of termination.
Missing is also the growing value of an employee who learns & improves over time.
Have you read this book?
“The Customer Comes Second”
https://www.amazon.com/gp/product/0688132464/ref=oh_aui_detailpage_o02_s00?ie=UTF8&psc=1
Many do not know that the three-note pattern played when the NBC logo appears is G-E-C (General Electric Corporation).
... measly 2 percent increase in pay doesn’t do much to encourage or change employee behavior...
New hourly hires usually come in at an hourly rate that the current staff, has eeked up to with measley 2% annual raises.
The only way most hourly wage earners, such as medical office support staff can get a raise is to frequently change employers and come in at a higher hourly rate that currently earned. It takes some shopping around.
Many employers also use an old fashioned “Spark plug” theory of mananagement. Like you did with an old fashioned Spark plug, you put a new, energetic employee into place and use and abuse him until he burns out. Then you discard him and replace him with another.
Although our parents wanted “jobs for life” with annual raises, my wife and I learned the hard way that corporate loyalty only flows from the bottom up. The only way to get a reasonable raise is to shift jobs.
That said, I fault the current corporate philosophy of paying executives an unjustified amount on the close relationship between CEOs and fund managers. Sadly both stockholders and lower level employees suffer as a result.
You might like these articles though:
(Vanity) Another Look at Outsourcing:
(*)McKinsey’s motives in this, however, may not be as pure as the wind-driven snow, or even the silt-ridden Ganges. According to an article from The Times of India, McKinsey is being paid to generate jobs in India: “The Karnataka government would like to see more jobs created in these areas and has mandated consultancy firm McKinsey to formulate a strategy to generate one million jobs by 2008.” QED.
(Vanity) A Falling Tide Grounds All Boats:
There are a number of reasons which have been given in the past for the desirability and the “inevitability” of offshoring. First, it was the wages:
But now it has changed; see the Jan. 30, 2006 Business Week on “The Future of Outsourcing” :
Up to now, the primary motivation of corporate bean-counters has been to take advantage of the huge wage gap between industrialized and developing nations. Big layoffs at home were usually the result.
But now, a more strategic view of global sourcing is starting to emerge. The new buzzword is "transformational outsourcing". Many companies are discovering that off shoring is really about growth - making better use of skilled US staff, and even creating new types of jobs in the US. The labor savings from global sourcing can still be substantial. But it's small compared to the enormous gains in efficiency, productivity, quality, and revenues that can be achieved by fully leveraging offshore talent.
NOW it's making sense. The shift from short-sighted, narrow-minded local-job protection, to true business use of global resources, stimulating innovative talents, partnering of complementary knowledge resources. Ubiquitous broadband communications makes this possible.
In other words, they are admitting the the cost savings weren’t “really” the reason?
Or from the February 17, 2006 Business week interview with the CEO of India’s Cognizant Technologies:
Outsourcing started as a way for companies to realize the benefits of lower costs. Later, they realized they could improve the quality of much of their work by taking advantage of excellent workforces. Now they are coming to understand that companies like Cognizant can help them assemble teams and projects much faster than they could in the U.S. That's the real value, time to market. It can take six months to assemble a team in the U.S. We can have a problem solved in six months.
Read that again. “Now they are coming to understand, …that’s the real value, time to market.” So were they lying before, about low costs, and they have to come up with a new rationale? Or have wages in the Third World suddenly risen to match those in the States, but the Americans are now just too slow?
So if the reasons for outsourcing cannot be consistently articulated, even by the CEO’s of the outsourcing firms themselves, what is going on here? I came across the following article, again from Business Week, Feb. 28, 2006:
While there are no numbers, anecdotal evidence suggests that scores, perhaps hundreds, of former GE and McKinsey executives and consultants play key roles as both suppliers of outsourced services and customers for them. ``Every time we have an outsourcing forum, it's like a GE and McKinsey alumni association meeting,'' says Sunil Mehta, vice-president of NASSCOM, India's software industry association.
In other words, there is a large element of the “old boy’s network” here. Read the Feb. 28 article, there’s a lot to it.
It is becoming increasingly difficult to leave for greener pastures too as the housing market has turned a person’s home into a boat anchor. at least in my area.
If you really look at it correctly, they probably lost the top 10% simply because of Affirmative Action. The best are not hired, therefore, the lowest 10% are worst than you think. As for Gladiator Pit analogy, hiring is based on quotas so White Males compete against White Males, Black females against Black females; Hispanics, Asians el at. men and women within their racial groups are quoted within the diversity of the workforce. I would lay odds that either Asian or White Males are the most competitive of all the groups followed by Asian or White Females; Asians would follow second. Jobs have become mandatory for racial quotas. Today the majority of hiring is going to LGBT to ensure their balance, and for practioners of Islam.
Question: Does anyone know of an Indian (from India) ever replacing an executive? Or all the Indians rank and file.
If an employee's productivity improves by 10% then he/she deserves a 10% raise. If the employee's productivity is the same as it was last year, then he/she deserved no raise whatsoever.
Believe me -- there are very few things more useless in the business world than an employee with 20 years of experience who knows very little more than he or she did when they had 0 years of experience.
Any place that a white male without some kind of very unique skill can find a job now is probably a hell hole where those who are given preferences refuse to work. I checked my “white privilege” and as nearly as I can determine it ceased to exist sometime in the sixties. I think I’ll have a DNA test to see if I am one tenth of one percent something other than Anglo-Saxon or Norman so I can claim a real privilege.
Sun Microsystems' co-founder was Indian; the company went under (despite Java, which was developed by someone other than an Indian)...to my opinion (looking once at their jobs offered a number of years back) they seemed to hire almost exclusively Indian programmers for awhile.
The rot was started in software by Bill Gates, who conditioned users to act as unpaid guinea pigs and beta testers: it takes a lot of chutzpah to call a suite of bug fixes (which should have been performed before releasing the code) a "Service Pack."
You are correct, grey whiskers.
Another case in point is Yahoo’s Marissa Meyer and ex-CEO of HP Cara Fiorina.
There are several others, but that is what gives rise to corporate raiders like Carl Icahn. Icahn recently took over the Trump Taj Mahal (The Donald has been long gone, only the name is left) and is in the process of shaking up the dead wood management.
"Service" in the animal husbandry sense...
“And not GE and its HR flying monkeys are trying to stampede management (who are a bunch of mindless selfish lemmings) into eliminating annual raises ... supposedly to reward the highest performing workers.”
You nailed it. When I worked there HR got a few noobs together and offered them the “opportunity for expanded merit raises” if the cola was eliminated. The idiots all took the bait and it applied to the rest of us after that. There were some whopper cola’s under Reagan too. One I remember was $1.30 an hour bump. The last straw for me was when an edict came down that minorities had to go through three levels of management to suffer a layoff.
With ObamaCare that 2% won’t cover higher premiums, copayments, and deductibles...never mind increased property taxes, grocery costs, etc.
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