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HR doesn't have any choice in the matter. This is written as if they do? >Handling inflation in compensation is a tricky topic. We want to do right by our empl
by incomingpain 4y ago
HR doesn't have any choice in the matter. This is written as if they do?
>Handling inflation in compensation is a tricky topic. We want to do right by our employees and for us that means in a way that can be sustainable long-term.
The GDP of a country is the definition of the annual labour of all workers which defines/supplies it was all the necessaries and luxuries of life. Imagine a system where you input useful labour and receive the goods and services without every considering a currency. This measurement will always stay the same. My useful labour will receive so many goods and services. In the case of many GDP, it is measured in a local currency but that doesn't matter. You will still receive the same goods, but extrapolating to a currency simply makes the transaction simpler.
When the local currency is inflating. It does not change the actual underlying necessaries of life. It means the cost of the labour has gone up that amount because the necessaries have gone up that amount. It doesn't matter what the currency says, you still get your slice of the necessaries.
So when an employer doesn't match inflation, and thusly is giving you less necessaries. The logical conclusion is they are taking advantage of you, or they assert your skill, dexterity, and/or judgement has reduced in the last year. Which is virtually never the case. So they are taking advantage. They wish to pay you below labour cost to enrich themselves at profits.