4 ms·

I’ll chime in as a business owner. We peg our raises to the SSA cost of living adjustments. This means our bump for employees at the end of 2021 was just under

by wkirby 5y ago

I’ll chime in as a business owner. We peg our raises to the SSA cost of living adjustments. This means our bump for employees at the end of 2021 was just under 6%. If current trends continue, likely a similar number at the end of this year. There are a few reasons I encourage other employers to peg annual raises to the same number: - It’s usually a very fair number; never egregious for increasing costs. - Someone else gets to do the math, and you have a very easy number to tell prospects in interviews for what to expect. - It helps keep social security solvent. We also use this number as a guideline for increasing our billable rate during contract negotiations. It has most of the same benefits.

gameshot911 5y ago
Forgive me if I'm misunderstanding, but doesn't this mean that you don't give your employees any raise in terms of real dollars? Even in the same role YoY, don't they become more knowledgable, experienced, capable? Take on new responsibilities? Don't they deserve to share in that added value to the company?
- mdavis6890 5y ago
  Perhaps knowledgeable, experienced, capable - but not necessarily more valuable. The value is very much based on what a person does, where they do it, who they do it for, and when they do it. All those other factors will usually outweigh modest personal growth. Lame example: being a better typewriter repair person today, working in a barbershop. No matter how well that person does their job, they may not add more value this year than last.
- wildzzz 5y ago
  I'm sure this 6% raise is just the baseline for everyone. If you are promoted or stand out amongst your peers, then a larger raise is in store for you.
- amisure 5y ago
  "Pegged" does not mean "Equal To"
- wkirby 5y ago
  Yes. But I (and most of the people who work here) tend to agree: the capital concept of infinite growth is fundamentally broken. We're a small company, we have a flat salary policy (everyone, including the owners, earns the same wage). The salary is enough; it's market competitive without going overboard. We have a profit share so when the team does well, we all do well. We aim to raise our billable rates and our salaries in line with inflation. It's a simple, sustainable model. We don't grow, but we don't shrink. We exist. That's enough.

by wkirby 5y ago

gameshot911 5y ago

Forgive me if I'm misunderstanding, but doesn't this mean that you don't give your employees any raise in terms of real dollars? Even in the same role YoY, don't they become more knowledgable, experienced, capable? Take on new responsibilities? Don't they deserve to share in that added value to the company?

mdavis6890 5y ago
Perhaps knowledgeable, experienced, capable - but not necessarily more valuable. The value is very much based on what a person does, where they do it, who they do it for, and when they do it. All those other factors will usually outweigh modest personal growth. Lame example: being a better typewriter repair person today, working in a barbershop. No matter how well that person does their job, they may not add more value this year than last.
wildzzz 5y ago
I'm sure this 6% raise is just the baseline for everyone. If you are promoted or stand out amongst your peers, then a larger raise is in store for you.
amisure 5y ago
"Pegged" does not mean "Equal To"
wkirby 5y ago
Yes. But I (and most of the people who work here) tend to agree: the capital concept of infinite growth is fundamentally broken. We're a small company, we have a flat salary policy (everyone, including the owners, earns the same wage). The salary is enough; it's market competitive without going overboard. We have a profit share so when the team does well, we all do well. We aim to raise our billable rates and our salaries in line with inflation. It's a simple, sustainable model. We don't grow, but we don't shrink. We exist. That's enough.