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Larsen & Toubro Infotech Hi Everyone,
Urgent !!
How many years of experience does Cognizant consider in order to give "Associate" role?
I am switching from Larsen & Toubro Infotech & I got a role of 'Programmer Analyst' having 2.2 YOE.
What is the max budget for 'Programmer Analyst' role ?
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Inflation is a factor, but not the primary factor. If your company is raising rates substantially to cover inflation, then some component should be included. For example, we have a total compensation process at my Big 4 firm that includes both a merit and a market component. The market component by its nature includes some component of inflation. On the othr hand, asking for a straight 9% extra above your merit raise is probably not realistic - I know we raised hourly rates by like 10% this year, when prior years would have been like 4 or 5%. So, only the extra 5% above the normal raise would be available to fund a market adjustment, all else being equal. Funny, when we had years of low inflation (think the last 10 years), people weren't asking for smaller raises because inflation was low. That's why we use a market adjustment - it includes more than just inflation. Does that help?
Yes, thank you - appreciate the explanation and the fact that you weren’t patronising (unlike others)!
Interesting discussion. But what is the inflation exactly, what is the number? On each product it is different and not all products or services have peeked out yet. Plus cost of labor might be getting cheaper for the company, based on the labor source.
If we do raises with inflation in mind, when inflation drops, are they able to revise my salary or not give raises to reflect lower inflation?
Don’t think you understand how inflation works…
Rising Star
Labor is a market. You get paid based on the value you create and what it would cost to replace you. Inflation is an indirect input into that value, but it’s not the driver. You should never expect your pay to go up because costs went up.
It works the same with any other good or service. This is the most basic of strategy principles. That’s how markets work.
But reasons matter and to say otherwise is horrifyingly ignorant. You want stagnation and for everybody to drown in inflation. Way to go above and beyond proving my point. Can't wait till you get fired or retire with your attitude;)
What voices?
Ofc inflation rate should be a factor in yearly raises.
While the companies are not obligated to pay attention to inflation rate, they should pay attention to the employees perception that they're not paying attention. 😉
Of course your raise is mainly based on your performance. However, in 5-10% inflation years, a 2.5% raise can be regarded as "be thankful you still have your job".
There’s a difference between cost of labor and cost of living. Both can be impacted by inflation. Right now, you’re likely about to see the cost of labor decrease precipitously relative to the cost of living.
But I don’t think you have to avoid discussing inflation though. It’s a valid point when it’s affecting the labor market as well as the cost of goods.
Thank you
Rising Star
Companies are not going to pay more if they can achieve the same results by paying less.
Simple as that.
Most "talent" is completely replaceable.
That might be the case in the US but in the UK where I am based there’s a shortage of talent in our industry. I’m supporting management with recruitment and I’m seeing 1st hand how hard is to find good people.