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by sjhatfield 12 days ago
It's not that promotions should be given out indefinitely but I think a pay raise in line with inflation should be the minimum, unless you are under performing. It's funny when a company excitedly shares a pay raise with you are it's below inflation...
2 comments

Merit raises are typically based on market rates as a baseline. The employees' costs in terms of consumer price inflation are not a factor. If every employer gives out raises in line with inflation that also creates a positive feedback loop which contributes to higher and higher inflation every year (I do understand that's not the only thing which drives inflation rates).

If your wages are falling behind then look for opportunities in higher growth sectors.

As an employee I don’t care about the reasons that inflation exists, I care about getting the same real money over time (only counting inflation raises, not counting merit or other kinds). And citation needed about inflation raises driving inflation, there are much bigger factors that contribute to it.
Employers don't care about whether you're getting the same real money over time. Why should they?
Because I do, and if they only care about me as an economic output machine then why should I care about them?

Put another way, if they aren’t matching inflation, should I reduce the work I do correspondingly?

No one is forcing you to care or to produce any particular level of work. If your job has no growth opportunities and stagnant compensation then you might want to look for other opportunities.

I think the issue here is that you're trying to frame the issue in terms of some sort of concept of fairness. But in reality that has nothing to do with it.

That’s a bit misleading, no? If you don’t produce a certain level of work you’re going to be fired.
Because people are not perfect incarnations of idealized concepts. Employers are people who exist in society who have concerns beyond the bottom line. That many or well more than most employers have forgotten this fact is at the core of what is wrong with work, corporate America, and capitalism in general.
I always look at inflation when I get a raise. Or if they are skipping raises because of the economy - I compare to inflation. I accept that as a staff level engineer I've reached about the top of what I can make - but I still expect my income to match inflation, and I have left when it doesn't.