PunkInDrublic said:
UncleThursday said:
here in the US, expecting normal pay increases over the course of a career until retirement is far more of a pipe dream than anything else, anymore.
This isn't really true but whatever, not trying to argue career choices in this thread. Will add that high amount in small amount of time rarely seems to work. Usually ends with the model logging off all shitty.
Maybe it can depend on your industry. But many in the US face stagnation or worse in wages. Truck drivers for some companies have had to take pay cuts. The Hostess issue I mentioned earlier took a pay cut then were robbed of their retirement funds then all lost their jobs. Over 3 million people in the US currently work at or below the minimum wage of $7.25 an hour (which cannot be lived on), and the majority of those people do not make enough hours to be considered full time and get health insurance through their employers, thus relying on the government for healthcare (WalMart is a great example of this, where they purposefully keep their employees below 35 hours a week so they don't have to pay healthcare).
Even college graduates, who in theory should have more career choices, are sitting at 11% unemployment.
Most companies are sitting at a max of 3% raises per year. Maximum. Some don't even do that (been in one myself where they said they couldn't give any sort of raise one year even though they were making money hand over fist as a third party logistics company-- and they literally pulled the "the economy is bad" card to justify not giving pay raises).
So, let's do some math...
Let's say a company hires someone at $10 an hour. That's not good money anywhere in the US, but it's still better than minimum wage. So, after 1 year, assuming the employee gets a 3% raise, they now make $10.30 an hour. Assuming they get 40 hours a week, they now make $12 more a week. $624 more a year. So they went from making $20,800 a year to $21,424. At that rate, it is going to take them almost 15 years to even make it to $15 an hour--
IF they get a full 3% every year.
Inflation is sitting at around 2.1% right now. So that 3% raise is actually only a 0.9% effective raise in wages. So, in effect, that wage increase effectively becomes a 9 cent per hour increase, or $3.60 a week that they'll actually notice. Would anyone here notice an extra $3.60 a week in spending money?
Even Forbes magazine talked about stagnating wages just as late as last week...
http://www.forbes.com/sites/cameronkeng ... d-50-less/
Why are people who jump ship rewarded, when loyal employees are punished for their dedication? The answer is simple. Recessions allow businesses to freeze their payroll and decrease salaries of the newly hired based on “market trends.” These reactions to the recession are understandable, but the problem is that these reactions were meant to be “temporary.” Instead they have become the “norm” in the marketplace. More importantly, we have all become used to hearing about “3% raises” and we’ve accepted it as the new “norm.”
And, it's true. I'm jumping ship to a competitor because they're offering me just under $4 more an hour than what I am working for right now ($3.74 more an hour). The director of operations for my entire company even called my cell phone while I was at work to try and get me to stay. I told him he has until my background check comes back at the new place and I take my drug test to make me an offer. Since our Kansas facility just had 13 people jump ship to this competitor because they paid better (7 walked off the job at the same time), including the production manager, the company is running a bit scared. As a machine operator, even the $3.74 increase isn't really what I should be making, but it's a hell of a lot better than what I'm making now. And no one in my facility wants to deal with the hassle of the machine I operate, so if they hit me with a counter offer, it better be good.
And, yes, I know the government
says the average income is around $42k a year... but the average job isn't paying $20.19 an hour. The government also says unemployment is down, without taking into account underemployment or people who have simply not found new jobs but no longer can collect their benefits. So, you'll forgive me when I say the government is full of shit when they post the figures for average income and unemployment numbers.