[notional]

Anyone else get a "2% inflation raise" this year? Have you brought up rising inflation and pointed out that raise doesn't match reality? Did your employer agree to give you an extra couple percent?

I like my job and my employer but after getting that pittance after last years bs and now high inflation I'm not sure it's worth arguing for a bigger bump retroactively (showing my hand when I don't get it) and instead I think it might be easier to just find a new job.

[rawtxapp]

Statistically, you'll make more money if you switch jobs every 2 years and right now there's huge demand for talent, so it's probably a good idea to switch.

[bakatubas]

This might be true in tech world but in local economies does not make sense. How can folks “switch jobs” every two years when there may not be equivalent opportunities in many cases?

I’d also like to point out that while many tech folks are just as fickle with their jobs as they are with programming languages, there is a lot of benefit to holding one’s post and trying to build a better company, too.

That being said at some places stagnation can happen and then it’s obvious to switch jobs, but stability can offer many benefits over arbitrary switching for more money.

[joshstrange]

> I’d also like to point out that while many tech folks are just as fickle with their jobs as they are with programming languages, there is a lot of benefit to holding one’s post and trying to build a better company, too.

Why? Why should I spent my time/energy at a company that doesn't pay me what I'm worth? I've played this game before and it's not worth it. I've been on committees, I've organized events for work, I've worked on building team/company moral, written surveys and studied survey results, planned meals/outings, etc. That company did not reward that behavior at all and not matter how hard I pushed they wouldn't move on certain things (remote work being top of list but also treating all employees with dignity/respect). All I got was tiny "cost of living" pay increases (3% or less) even as my contributions increased at a much faster rate. I left that job and got a very sizable "raise" and I recommend other people do the same thing. You (often) have zero equity in the company and thus zero incentive to change it for the better, life is way to short to toil away for someone else's gain when they don't reward you for your effort.

[bakatubas]

Of course each situation can be unique. I wouldn’t recommend staying at any place that overworks employees or unfairly compensates them.

I am referring to tech folks arbitrarily switching jobs JUST for a pay increase, every year or two years. What’s left behind many cases is in maintainable code where people shrug it off as “someone else’s problem.”

[joshstrange]

There is an easy way for businesses to fix that though: Pay people more. If you compensate people for what they worth they will stay, if you don't they will leave. I don't think it's a good idea to shame people into staying in a job where they are being paid less than they could earn on the open market. Also why should I stay indebted to a company that won't/can't pay what I'm worth? Loyalty died a long time ago. There are no pensions or other incentives to stay and businesses lay people off at the first sign of trouble. If a business can fire or lay me off without warning then I'm not going to feel bad about leaving (and often giving 2-4 weeks notice).

[imtringued]

New jobs paying more is inflation. You're supposed to get a new one if the old one doesn't give you a raise. It's a way to allocate workers efficiently.

[benhurmarcel]

> right now there's huge demand for talent

Not everybody on HN is an American tech worker.

[duxup]

I've never worked at a place that gave pay increases based on inflation.

I think debating inflation predictions for both the employer and employee could be an endless / counter productive and exhausting thing.

Probably better to make your case via the typical salary negotiation methods, discussing what you did, etc.

[lostlogin]

> I think debating inflation predictions for both the employer and employee could be an endless / counter productive and exhausting thing.

Yes, and OP seems to be on the verge of a new approach - find a new job.

I’d also assume that inflation doesn’t hit the country evenly, and sectors, regions and individuals all experience it differently. The OP could be considerably better placed or worse off than the mean.

[giantg2]

I could be based on the most recently available data.

I mean, one of the main reasons we see so much inequality today is that workers haven't demanded inflation increases. The tactic of negotiating for it on merit is good, but it's good to have this as a fallback and to understand if your merit increase really is an increase or not even keeping pace.

[notyourday]

> I mean, one of the main reasons we see so much inequality today is that workers haven't demanded inflation increases.

Inflation increases are not increases.

[giantg2]

Not sure why you are being downvoted. We are saying similar things. I think you just mean the real wage stays the same if you get an inflation adjustment. My point was without that adjustment (or an adjustment less than the inflation rate) the real wage decreases.

[throwaway2048]

Not having inflation based pay raises is exactly equivalent to taking an automatic pay cut every year, which by your logic you only avoid if you "preformed well".

I think I'll pass.

[duxup]

It's not a pay cut if you get a raise for .. some other reason.

I've just never seen 'inflation pay raise' as a policy.

[MattGaiser]

You see it more in more traditional industries. My last job was public sector and the unionized workers had CPI somehow embedded into their contracts.

My new trendy tech company? No policies on pay whatsoever.

[grasshopperpurp]

Yeah, we call it COLA (cost of living adjustment), and we get a bump every couple of years or so.

[ska]

> I've just never seen 'inflation pay raise' as a policy.

They are pretty common.

[duxup]

Do they actually pick an inflation indicator and go by that?

[ska]

I think it really depends.

I've seen big sector contracts (e.g. 10k-100k employees) with it built in for a fixed number of years. Presumably the negotiators talked through some indicators originally.

I've also seen several 'eh, on average it's about 2%" type giving leading to a 2% written into your comp.

I've also seen places give it but not in your contract; based on execs opinion I guess on what real cost-of-living was doing. I suppose that's plausibly as accurate as picking an index.

[jjk166]

They are usually called something like "cost of living raise" but the meaning is the same.

[renewiltord]

The pay raise I expect is so much more than inflation. If I got less than 20% total comp increase at low numbers or less than $100k at high numbers, I’m assuming my performance is insufficient and I’m going to find a place to be more productive. At the point where we’re debating 2% increases, I don’t really care. I’m gone. You know it, I know it.

I’m not special. This is San Francisco as much as I know.

[ridiculous_fish]

How many years of experience do you have?

[renewiltord]

Seven.

[Arrath]

I got a nice speech about how the pandemic was hard on everyone and I should be happy with my 1.3% 'meritorious' raise.

=D

[imtringued]

If inflation is higher than your pay raise you know you can ask for more.

[lostlogin]

You can, but inflation isn’t a constant across industries, regions or individuals. It’s a shitty argument to get into - but not ha I got the argument guarantees the outcome.

[Arrath]

Yup. You can ask (in my case, I did) but getting a further bump is by no means guaranteed.

[chrisseaton]

> Have you brought up rising inflation and pointed out that raise doesn't match reality?

But people aren't paid based on purchasing power, so what does inflation have to do with it?

Could be an interesting idea - you get paid 100,000 Big Macs per year. Changes with their price.

But that's not how things actually are.

[milofeynman]

It's a workers market. Go get yourself a 20% raise and don't over think it.

[giantg2]

Where/how?

I feel like this is easier said than done.

[genedan]

Go to a competitor. It can be a farce sometimes, when people from two different companies across the street essentially just replace each other for 20% more, but doing the exact same job. And then two years later they repeat and switch chairs again for another 20%.

Maybe there's some benefit to the companies in having stuff like this happen (learning a bit more about the competition), but the negative consequences that result from the loss of talent and internal knowledge seem to be avoidable in this situation if they just worked things out over pay.

[giantg2]

My company will not hire people back after they leave.

[xyzzyz]

Just go looking for a different job at all the top companies in your area. Some of them will offer you a job, and when negotiating pay, ask for 20% more than what you're making now. Simple as that.

[lostlogin]

This is a lot harder than you make it sound. I have worked in sectors where people would worry that asking that question would terminate the interview - hospitality for one.

[thekyle]

If the new job doesn't pay more than the old one then why bother switching?

[giantg2]

The type of work and policies could be a huge driver. I absolutely hate my job. If I would something similar in pay/benefits/etc I would quit today.

[xyzzyz]

Not all jobs are created equal, especially in hospitality or retail.

[chmod600]

What do you have to lose? If there are a lot of companies interviewing (high demand), you just interview at a couple of them. When they ask how much you expect, tell them 20% more than what you are making now. If they say that can't be done, just politely say that it doesn't make sense for you to join at that time, but perhaps in the future another role will open up.

Then, at least you can go home knowing that you are already making what the market can bear, and you aren't leaving money on the table.

[giantg2]

Even that's tricky in some markets. Plus I don't want my current job to fire me if they find out I'm looking.

[mgkimsal]

"that asking that question"

Asking what question?

[lostlogin]

Asking for a higher wage.

[xyzzyz]

Yes, and it doesn’t work in all sectors or all places, but it does in tech sector in the US.

[giantg2]

So my area doesn't have very many good companies for tech workers. There aren't a lot of tech jobs open here for intermediate devs. Most of the ones I do see are showing estimated salaries 10-20% less than mine already.

[willio58]

It is, but it's still possible and generally easier now than times in the past.

[giantg2]

I'm wondering what will happen later this year in my review. I'm slated for a below average review, so I expect I'll get 1-2% for a real pay cut.

[throwawayboise]

No raise last year ("because of COVID"). No raises communicated yet this year, and they should be taking effect on July 1 if history holds.

[mustacheemperor]

>it has been annualising at 8% so far in 2021, Bofa said in the note

Sounds like your inflation raise would need to be even higher than 2%.