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You essentially had a pay cut. 2% is less than the 3-4% yoy inflation rate
I believe the poster covered with “yoy” [year over year].
Inflation in recent years has been in double-digits [true inflation], but historically the rate is between 3 and 4%. A 2% pay increase in this economy is very weak.
Maybe some have seen that many employers have outright come down on offered salaries and wages compared to three years ago. Also, counts of tech lay-offs are high in 2023-2024. A 2% pay increase may be the best deal for your situation. It is up to you to decide.
Yeah, no. Being aware at how pitiful of a raise that is doesn't make you ungrateful and anyone that tells you otherwise is blowing smoke up your *ss. That's a pay cut relative to the increased cost of living. I switched employers to do the exact same role and got a 15% bump. It's pretty much the only way to get a decent raise these days.
Until you get caught without a chair when the music stops. It happens
Not only was that measly, many companies had insurance premiums jump as well. Our insurance jumped somewhere around 80% for families. We'll be getting 3% if, and only if Management perceives each employee to have done a good job.
Acting your wage... I hate that this is becoming a thing, but on the other hand, what else are employees supposed to do?
One of the other comments mentioned jumping ship to a different employer. I agree, however with the likely economic downturn ahead, last in employees in, are generally the first out when it comes to layoffs. Be careful out there!
Wow! I felt the same way about my 3% raise. It by no means keeps up with inflation or the economy. I know the company knows this. Sigh.... I have stayed with the company because I can now work from home fulltime but the salary is still less then the going market :(
Yearly compensation increases often lag the market. If you feel your contributions and/or market value command a higher salary than you are receiving that is worth a conversation with your manager. I had a conversation last year after a less-than-stellar increase and ended up getting an additional 10+% compensation increase. Job hopping is not always the answer.
Is your company publicly traded? If so, I'd listen to an earnings call or check out some recent quarterly reports online. It will include year-over-year growth percentages. If those are significantly higher than the average pay increase, then I'd think there's definitely a problem.
You're 100% right though. A 2% pay increase is a cost-of-living decrease. And there's no reason to be grateful for that, especially if the company is doing well thanks to the hard work of you and your co-workers.
Been in this business since 1989. I think that cost of living increases might have become a thing in the late 1960's when inflation went from around 2% up to about 4%, but certainly must have been a thing by the mid 1970's when inflation jumped to 11% in 1974 and stayed above 7.,5% all they way to 1983 (12.5% in in 1981!). Starting in 1983 it started heading down but stayed 4-55 all the way until 1991.
Anyway in 1983 you kind of expected a cost of living increase as a minimum. Seems to me sometime around the late 90's that changed and employers maybe weren't to diligent, and employees didn't make much of a fuss, since for many years inflation maxed out at about 2.5%.
But of course eats away at your take home pay, and yes is in fact a pay cut.
Employers should having been giving out 6.8% for 2022 and 3.9% for 2023.... and no I got zero as usual, and as someone mentioned, we long ago reached the point that to get any reasonable increase you have to get a new job.
Final thought: consider the company profits, and what rates did they increase their prices? If they increased prices and did not also increase employee wages by at least the same amount, that is sad. I just found out the company I work for has been increasing prices 5% every year for the last few years and giving employees nothing...
I got a 2% increase. I escalated that to my senior leadership and made them understand that the peanut appraisal increase is not commensurate with my actual performance. Applied to another position laterally and will be leaving soon (which they know per policy).
Meanwhile, I became more passive at my job and focused on my side gigs more. At this point, I just collect a paycheck for doing the bare minimum.
That’s not an increase but rather a dip on salary
in my company (Tokopedia) no base salary increase, you should be gratefull for that :')
That's the world we live in right now. Vote accordingly
I can beat that! I only got 1.6%! And that’s with 2 “successful” ratings. Pitiful behavior from a huge corporation.
2 years in a row of 2%. I'm already underpaid relative to others with my experience and skills. Meanwhile, stock in the company is rocking and making managers/long term employees bank. I'm looking at other opportunities.
Nope. Well not as far as the IT department is concerned. Which is why I put my 2 weeks in the other day
In the two years I’ve been at my company I’ve gotten a single 1.6% raise. And I was the only person on my team to get a raise that cycle…
Mercer Advisors is under the delusion that people will continue to be higher performers when their compensation/merit increases are pitiful at best.
22% this year...nothing last year (and given business conditions last year, keeping employed was good enough for me). 10.6% per year puts me well up on inflation. Been with the same client since 2021.
Unless your company is hurting financially, 2% is pretty insulting.
Loyalty to a company went away decades ago.
Don't like the pay raise? Get a second job to develop more skills that allows you to find a better job. Start burning your PTO at the first job for some breathing room because of the increased hours. When a better job shows up, give your two weeks' notice at the two jobs. If a better job shows up, use the income from the second job to reach your financial goals faster.
I haven’t seen less than 6 1/2% annually for almost 20 years.
I switched jobs to get an increase, which was eaten by inflation. My raises since haven't really been much. But I can't blame businesses for not being able to afford raises.
Unless they hike prices/rates then they can't afford to keep giving raises. If they hike prices/rates, and others don't as much, they lose in the market.
Then we think about all the other costs of business going up, and it makes sense.
It's a tough spot, which most employers can't move with much.
Maybe you can find another job which pays more, but definitely don't blame the company. Unless you can prove they are making plenty more than enough to cover it.