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Companies in the private sector pay you based on the market for your skills, not cost-of-living. They may move in tandem, but they are not in lock. If there is
by kerbs 5y ago
Companies in the private sector pay you based on the market for your skills, not cost-of-living.
They may move in tandem, but they are not in lock. If there is a shortage of talent even without inflation, your market rate will rise. Likewise if cost of living increases, but there is a surplus of talent—your compensation can still fall.
Almost anyone browsing this board makes far more than the cost it takes to “live”.
- Sohcahtoa82 5y ago> If there is a shortage of talent even without inflation, your market rate will rise. True, but rarely will a current employer keep your salary at the market rate. You have to jump ship to get the market rate. I doubled my salary in July by jumping ship. My old job was way under market rate, and management knew we were under market. They'd rather have turnover than give raises to keep up.
- kerbs 5y agoI agree companies have a current vs new hire agility problem relating to the market rate. It don't think this is reflective of CoL adjustments. For the past 10-15 years, the market rate has far outpaced CoL—yes even in the Bay Area (assuming FAANG-like companies and startups)
- lkxijlewlf 5y ago> Companies in the private sector pay you based on the market for your skills, not cost-of-living. They problem is if you stay too long, you no longer make market rate and HR "can't give out X% raises" to get you to market because of some arbitrary made up BS rule.