I had my review this week in work for 2007. my employer is giving us 2.1% adjustment for inflation. my understanding is inflation for 2007 was about 4.8% in this country. is 2.1% a realistic adjustment for inflation? would like to be able to quote actual figures when i raise this as a issue, if it is an issue?
Inflation wage increase
- Thread starter Ishindar
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z104
Guest
That's a big bone of contention at my place of work too.
They gave 3.5%
Inflation is 4.9%
Our employer is effectively asking me to take a 1.4% pay cut.
Looks like you employer is asking you to take a 2.8% pay cut.
They gave 3.5%
Inflation is 4.9%
Our employer is effectively asking me to take a 1.4% pay cut.
Looks like you employer is asking you to take a 2.8% pay cut.
Don't mean to stir the pot.... but... if you're having this conversation.
1) It's a 2.8% (or 1.4%) paycut, without taking into account the additional skills and experience you have gained over the year. Usually you should be looking to receive more than simply inflation to take account of experience and skills gained.
2) Inflation can be a lot higher than the 4.9% quoted (I forget where I spotted the breakdown, but depending on your age and profile [young, mortgage, etc.] inflation can be ~6-8% for some brackets)
3) Think about some of the peripheral impacts and make sure to point them out to the employer (how relevant they are depend on your sector/market etc.) [New staff training costs, recruitment/advertising costs, drop in company morale due to staff turnover, time wasted by current staff training in a new start on in-house systems, learning curve for new staff to gain knowledge of the systems/clients/tasks you handled. If you can put a ballpark figure on these it might help encourage your employer to see the light.)
Consider general market conditions in our (relatively overpriced) economy, would be interested to hear what sector you work in.
Second point: Our company only gives increases where the performance of the company is good. Contract of employment specifically states that 'increases are not guaranteed and may not be adjusted simply for cost of living expenses'. (financial services company)
Second point: Our company only gives increases where the performance of the company is good. Contract of employment specifically states that 'increases are not guaranteed and may not be adjusted simply for cost of living expenses'. (financial services company)
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z104
Guest
I work for a US multinational in the technology sector- The company is going well and is profitable.
Still only got 3.5% along with the rest of my colleagues. Whether or not you sat on your ass all year or worked your ass off.Everybody in my dept. got the same.
We would all generally be on the 40-45k mark.
Still only got 3.5% along with the rest of my colleagues. Whether or not you sat on your ass all year or worked your ass off.Everybody in my dept. got the same.
We would all generally be on the 40-45k mark.
Is your employer making a profit? How do your pay levels compare to the industry norm? Has your pay increased above or below the rate of inflation over the last few years?
I work in technology for a dutch mulitnational. they made 18% net profit last year. Our pay levels are top tier compared to similar companies.
I raised the 2.1% inflation issue and apparently this is the adjustment projected on expectations for 2008 and is for the year 2008. The 2007 adjustment is given from jan 2007. So a smart way of doing it imho. Although the 2.1% projection for this year looks a bit naieve and most likely based on a european average.
I am of course looking into what we were given in jan2007 as its unlikely to be correct considering.
I raised the 2.1% inflation issue and apparently this is the adjustment projected on expectations for 2008 and is for the year 2008. The 2007 adjustment is given from jan 2007. So a smart way of doing it imho. Although the 2.1% projection for this year looks a bit naieve and most likely based on a european average.
I am of course looking into what we were given in jan2007 as its unlikely to be correct considering.
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z104
Guest
They need to base it on Irish inflation as this is the country we live in and pay for goods and services in.
You know there are some people around here who give you the impression that this kind of pay-for-no-performance would only happen in the public sector, and could never happen in a profitable, private sector company!
G
Gautama
Guest
My place gave 4-7%, and a 1% increase in pension.
New people seemed happy. Long termers unhappy.
Bonuses due next month.
Me? I expected 6%, asked for 12%, told them I could get 15% elsewhere.
I got 6.5%. Not happy.
New people seemed happy. Long termers unhappy.
Bonuses due next month.
Me? I expected 6%, asked for 12%, told them I could get 15% elsewhere.
I got 6.5%. Not happy.
How do you know what all of your other colleagues got? Surely this is a private matter between them and the employer?
R
rabbit
Guest
Leave + work for someone else so. Preferably abroad....and see if you get the same as here. Our economy cannot sustain if everyone gets 6.5% wage increases every year.
G
GOBSTOPPER
Guest
here here !
Why? You got more than you expected.
Brendan Burgess
Founder
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I have moved the "Can the Irish economy afford pay increases?" to the Great Financial Debates.