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by criticas 1517 days ago
Managers often have little discretion for unusual pay increases. The budget process, "fairness", and company culture inhibit raises. For anything out of the ordinary, you either need to get a promotion, be indispensable (or have a really strong negotiating position), or leave.

In the short term, there may be other factors you can use to offset that. Informal time off, working conditions, work-paid travel to conferences, etc. They don't increase your salary (which means they're not taxable!), but they can increase your quality of life. Managers often have more ability to affect these things, or get budget to implement them, than they have in raising salaries. In my company, vacation and sick pay are ordained across the board. Even the C level is limited to (admittedly generous) standard levels. That's offset by giving managers broad discretion to grant informal time away - if the work is getting done, take a Friday.

PS - We're being shafted harder than most people know. The Consumer Price Index, the official measure of inflation, was selected to downplay the actual rate of inflation. The official CPI inflation rate is 8% at the moment. If CPI were calculated the same was as in 1980, it would be 15% (http://www.shadowstats.com/alternate_data/inflation-charts). "Additionally, over the past 30 years, the government has changed the way it calculates inflation more than 20 times. These ‘methodological improvements’ to the CPI are said to give a more accurate measure of consumer prices. However, these changes could also be a convenient way to include or exclude certain products that give favorably low results, but there’s no way to know, given the lack of transparency." (https://www.forbes.com/sites/perianneboring/2014/02/03/if-yo...).

3 comments

As a manager at my company, this year we were given the usual: a small baseline increase with the ability to fudge individual numbers in a zero sum way as well as a small slush fund.

The one difference this year was we were also given official talking points on how to gently say "no" to anyone who brought up inflation when they rightfully complained.

slimy
To my understanding, CPI does not weight amounts purchased, only general prices. I'm happy to be corrected if that's mistaken. Without the amounts, it's a linear combination of "we're being shafted" and "we can substitute those things left out of the CPI with some ease relative to other types of good." Income + substitution effects and such.

Your personal inflation is probably not 15% if you're not buying the exact same bundle of goods you purchased last year. Higher, yes, but if you substitute away or choose other options you're probably not expending exactly 15% more than last year.

Shadowstats is not a reliable source of inflation information. I would link to a critique, but to be honest I think this point is more forcefully made by considering the volume of search results on the subject. Please stop repeating misinformation.