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Subscribe to RSSNow that the economy has been adding jobs at a steady clip, more of us are ready to tell our boss to “show me the money!”
After years of seeing tiny or non-existent pay increases, employees are more optimistic than they have been in four years that employers will hop on the raise bandwagon soon, according to a study released Wednesday by Glassdoor, a job listings site.
Raise optimists outnumbered pessimists for the first time since 2008, when the website began its quarterly Employment Confidence Survey.
Among the more than 2,000 adults polled last month by Glassdoor:
- 43 percent said they expected a raise in the next 12 months.
- 38 percent said they did not.
- 46 percent said they expected their company outlook to improve in the next six months, up 6 points from three months earlier.
Is this just wishful thinking on the part of recession weary workers?Maybe not.
Raises are indeed slowly making a comeback, said Ken Abosch, group compensation leader for Aon Hewitt, a human resources consulting firm.
But don’t expect your employer to break the bank.
Aon Hewitt surveyed nearly 1,500 U.S. companies last year about expectations for pay increases in 2012 and found employers planned to pay an average raise of 2.9 percent, up slightly from 2.8 percent in 2011, although way up from the record low 1.4 percent for 2009.
“Organizations are still very concerned with the health of economy, and they’re feeling pressures of global economy,” Abosch said. Many firms, he added, “fought hard in the last few years to gain control back over their fixed costs.”
Unfortunately for you working stiffs, your base salary is a big chunk of those costs, so employers want to do everything they can to keep a lid on it.
On the bright side, he added, more employers are paying out bonuses.
“Our statistics show that 90 percent of U.S. companies are providing bonuses as far down as the person sweeping the floor in the factory,” he said. That is up from 78 percent in 2005 and about 50 percent just 15 years ago.
The Aon Hewitt survey found:
- 86 percent of employers said they would fund variable pay based on company performance this year. In some cases, however, that is being combined with reduced merit pay raises and even layoffs.
- Nearly one in five employees (19 percent) are concerned they could be laid off in the next six months, up two points from the fourth quarter after declining the preceding two quarters.
- One-third of employees are concerned coworkers could be laid off in the next six months.
“Positive economic and company indicators are driving increased optimism around pay raises and company outlook, but that optimism hasn’t yet spilled over into individual job security or view of the job market,” said Rusty Rueff, career and workplace expert for Glassdoor.
“Employers should pay attention to employee expectations around pay and be more transparent to ensure employee sentiment is aligned with reality, which will help avoid disappointment that can impact morale.”
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Ha! Show me the money? Employers know better because they know that people can and will settle for less so why should they pay better? You already have been doing that for the past few years anyway. It's not like jobs are coming back in droves- if you don't like your pay they'll tell you to hit the road because some other guy has been out of work for 4 years and will do your job for even less. Besides, the ceo of the company is getting his millions in bonuses and has to buy his wife a new Maserati- so no soup for you!!
From NPR:
The current policy makers in DC (both sides of the aisle) create a lot of economic uncertainty. Business react to uncertainly by hoarding cash. It isn't rocket science.
"Nearly one in five employees (19 percent) are concerned they could be laid off in the next six months, up two points from the fourth quarter after declining the preceding two quarters."
So more people are expecting to be laid off, and more people are expecting raises.
I suppose that makes sense if everyone is expecting the layoffs... and some are expecting to still have jobs and recieve part of their former co-workers salaries as raises.
Amen truesaid. My friend has gotten rejected for a raise, as have all of his co-workers, for the past 4 years. The company president's reason is that the "economy is doing bad, so I cannot give raises". Funny thing is, he bought himself a 3 million dollar yacht, and a MacLaren. A true slap in the face to all his employees, and a big lie, to boot.
ROFLMAO! "no soup for you" - PRICELESS ;-)
Jeff, have they been doing this since 2000 then? Middle Americans have not seen a raise in over a decade, cost of living and living wages are all but dead. This is not only a Government issue, it is an issue ingrained on the fabric of business ideology as well. Businesses should not be following and responding to politics that do not directly effect them as a whole. If the Government wants to tax CEO's that should not cause a company to lay off hundreds of people, for example.
If the EPA want's to create more strict environmental rules on refineries that causes them to have to layoff some percentage of their workers then I could understand that. But pandering to a political party for how you run your business on a month to month basis?
The employers that say they are not hiring because Obama is in office are the worst offenders because instead of helping the country get back to work they are too busy playing politics.
Many, many years ago when I was 16 I got a part time job as a busboy in a restaurant. I made $1.25 an hour. If that wage had been indexed to inflation it would be $10.50 today. So anyone working for less than $10.50 today is making less than I did as a kid cleaning and setting tables. Wages are TOO low. They have not kept up with the cost of living. This is why half of Americans don't pay income taxes. Give them a pay raise so that they make enough to pay taxes!
NickatNet....it isn't the pay it is the expectation. Years ago when you were young and busing tables you had access to a part-time job that didn't come with benefits. Same for those who bagged groceries and those who worked at fast food restaurants. Those jobs were part-time and afforded young people to work an honest job and make reasonable money. There were jobs that students could have and were reasonably worked around school schedules.
Turn the clock up and people are expecting even the most menial jobs to pay them a living wage....this is an unreasonable expectation. My daughter is looking for a part-time job...she has had no luck at the mall because those jobs are reserved for full time workers...no luck at a fast food because well again people are expecting those jobs to pay a living wage, provide insurance, two weeks of vaca and oftentimes additional benefits for further education. The best opportunity we have found for her is to fore go a paying job and volunteer for the City...they have a reasonable mentoring program and offer leadership programs. Sadly, as much as she would like a paying job and will work for part-time pay and no benefits those jobs, that offered folks like you and I a strong work ethic and experience, as young people do not exist is abundance. She does have a line of a post at our vet for their boarding division.
txmom32,
I don't know where you live but it is not at all that way in the upper midwest. Hardly anyone has full time jobs open here simply because it's more efficient to hire part time (more bodies to cover the sick calls) and cheaper / good for PR (they can pay crap wages with no benefits yet claim they DO pay benefits on full time jobs that don't actually exist.) My wife has worked as a cashier for 17 years and makes $8.25 an hour with no benefits at all. The company offers insurance because she is full time but it costs so much it would be almost 65% of her take home pay.
Noah, I think she lives in Texas, but I am confused about the argument that people in food service jobs have an expectation of good pay and benefits. Nobody has this expectation. TX has more minimum wage jobs than anywhere else, and more uninsured. Why? 1. Conservative 2. Right-to-work (anti-union) 3. Business-friendly (see 1 & 2). The best jobs here are in energy & the public sector (except for teachers, who are dismally underpaid). Texas has out-performed in the last decade in job-creation, but they are mostly crappy jobs with no benefits and the growth is mainly fueled by demographics, i.e. a huge increase in the latino population. Texas has also benefited from higher energy prices, but job-creation from the energy sector is generally exaggerated.
noah...my point was that people working in low and no skill positions expect to have a living wage with all of the benefits...I live in Texas outside of a large metro area. The low and no skill jobs in our area largely go to an uneducated population of people (immigrant and citizen) who are not capable of doing more but expect to be able to make a wage and live as if they are middle class. Most of the jobs they do are what my generation and those before me did to earn money part-time as students. As for your wife being a cashier, that takes some skill, stocking shelves and doing inventory takes some skill...bagging groceries not so much skill and the service does not bring a financial return as a cashier would. But then now at the grocery and other areas there are also customer self-check lanes so well your wife could be at risk to tech.
Sanity check....I know that you are trying to slam me and my state but think please....consider some factors...a large portion of our economy is agricultural..this accounts for min wage jobs with a transient labor force...many of those 550,000 minimum jobs (I got the number from the NYTimes although they didn't list their source) are agricultural. Some of those jobs are related to manufacturing which is dwindling in many states because well the US over taxes business so they can pay their fare share and the fair share of their low income employees. As for Texas and min wage jobs...consider the hundred of thousands of illegal immigrants in ours state. Not just those from south of the border but from Africa, China, Vietnam, India etc. we are awash with people who can't manage to check in at the border and will work for virtually nothing. Now before you go off on employers....think..these are jobs offered by immigrant entrepreneurs...nail salons are a huge example of immigrants coming to the US to start business and then they hire illegals from their home countries. Along the same lines are taco trucks, nurseries and yes even day care facilities in highly concentrated immigrant areas.
As for uninsured...Texas saturates insurance programs for children of low income families so that at a very low cost they can insure their children. the distribute these offers in a variety of languages and yet they do not insure their children. But then we all know it is cheaper to take a kid to the ER, offer up a bogus address, and walk the charges than it is to pay $12 a year for a policy that would enable their children to have appropriate care.
Then there is the whole illegal immigrant issues where the parents of children aren't about to give any information that would lead immigration to them...the schools in Texas are sanctuary but not the hospitals. They would prefer to steal ER medical services then to seek proper medical care for their own children. Of course add to the problem those who earn their main living from illegal sources and will file for all of the low and no income resources so that those who really need those resources....mentally impaired, children who have parents in jail, children in our foster system, people who are legitimately disabled. We have a mess of corrupt folks in our State that have absolutely no scruples what so ever. They game the system leaving the vulnerable to suffer because their advocates aren't nearly as savvy as the criminal.
The teacher comment is absolutely laughable...in our district a new hire teacher, who has never needed to prove themselves in a classroom and may not even hold a teaching certificate enters at $44,700 a year plus any additional pay for assuming other school duties along with very generous benefits to continue education in the summer months. You really should know what you are saying before you type.
So your ignorance regarding the Energy sector is also misguided. O&G along with all of the associated business are very well paying jobs from the ground up. For instance from personal experience few of the jobs are minimum wage, even those come with the standard benefits of premium insurance that is actually tailored to the employee....for instance a $40,000 dollar a year employee on the insurance plan may pay less for their family coverage and their deductibles may be $200 for the family. A $150,000 a year employee will pay more for their family coverage with $2,000 family deductible. Employees of energy companies will qualify for vacation time at the same rate regardless of pay grade. Employees of energy companies often receive discounts for local services because the companies negotiate favorable prices for things like dry cleaning, well care classes or programs, massage therapy etc...Then there is the whole getting involved in their community by sponsoring sports teams, science contests, charity events etc.... Some efforts from the company directly, some from their spouses association and some from employee driven efforts....You absolutely are well within your right to dis the energy companies but doing it through ignorance is just silly perhaps you can find a real reason to be pi$$y.
Fortunately, Texas has lined out many avenues for job growth through a variety of industries....We have two, was three before the Delta Deal, major airlines....Personally I think when Obama leaves office Delta will be back in Houston where Continental was.... then there is the whole tech society...Dell in Round Rock, Texas Instruments Dallas, can't possibly list so willl give you a resource.
http://www.bizjournals.com/austin/stories/2006/08/21/daily19.html
So after that we can talk about the renewable energy industry...
http://www.treia.org/
Manufacturing... while the Union States were creeping Toyota came into Texas with their plant in San Antonio and 2000+ jobs directly and almost 16,000 indirectly...then we have other varieties of manufacturing Texas Machine Tools International in Waco...Caterpillar in Victoria....Sealy Mattress Company Ft. Worth.
In discussing Texas innovation we certainly can't overlook the biotech industry...
http://www.governor.state.tx.us/files/ecodev/Biotech_Report.pdf
I could go on but I believe I have made my point...perhaps you should spend 10 minutes in research before you just go off on progressive talking points.
Oh yes one more important factor...
http://www.cnbc.com/id/37875470
Hell, we're in such bad shape I can't even get my sick time paid. No raises or bonuses here and we won't be expecting any for the rest of the year. Business has to pick up first.
Trouble is that most of our work came via municipal and county governments who have all slashed their budgets and put projects on hold indefinitely. Coupled with the scarcity of new construction we are barely getting by.
No work, no money.
Not my company, they're hardcore conservatives all... would have more success trying to get Hitler reannimated and put on Dancing With the Stars.
same here... Whatever you got hired at is apparently all you'll ever get. The main reason I took this job was for the 401k matching to catch up on saving (which they quickly dropped in year one) and the flexible hours and location. The starting offer was low, but I figured I'd get a bump in the first six months or year and I'd be OK, but man was I wrong. I haven't had an increase in over four years and now wouldn't expect one if I stayed for ten years and walked on water. They figure if you want more money, you can quit and go elsewhere and they'll hire somebody to replace you or just share your load on the others. All die hard conservatives here - asking for a raise would just label you as a troublemaker. I guess they figure you'll try to bring in a union next since you're wanting more money and maybe even better benefits.
I'm hoping to get laid off soon since the job market is definitely improving so I'll be able to find something else and the company is really not doing great since it doesn't attract the best people (I wonder why) and fills management slots with family and friends. If I quit, I'll probably get a bad reference and definitely no severance and lose all unused vacation days. At least being laid off, I'll get a couple weeks pay, my saved up vacation, and a good reference. I'm doing the minimum to get by so I'll be high on the cutback list when they realize that they're not in a good place and have to cut the worker bee headcount to keep the nepotism policy they have going. The "bad economy" just gave them a convenient excuse for officially freezing everything indefinitely and telling people how lucky they were to have a job at all.
No joke! I've worked in the same job for 3 years without a raise. In fact, they've "clawed back" part of my wage by increasing the "cost share" for our health coverage and instituting unpaid furlough days.
Since my family can't make it off what I take home any more, I took the time to write out all the extra duties I've undertaken since starting my job, thinking that those figures and my excellent job reviews would surely get me at least a small bump in pay. But HR just sent me an email that said, "Compensation for this position is fixed. We suggest you begin looking for higher-paying positions if you need an increase."
SIGHHHHH
Mike, I just laughed my way through reading your second paragraph. Not laughing at you, just laughing in agreement with you. It's more beneficial for you to be laid off and collect on your severance and vac days vs. quitting. Good luck to you and I hope you find something more suitable.
Damn Julkie,
I'd be a little ticked by a reply from H.R. like that. If I were you, I'd keep my head down, do the absolute minimum, and start looking for another job. It stinks big time when you put in the extra effort and take on more responsibilities and basically get shunned and avoided.
Pretty much the same here. I lost a week of vacation and $2 per hour. I'll get a 1% raise over the next three years to make up for that. Yippie!
Each of you who have posted above have hit the bulls eye and didn't know it .
There are several problems here. First is greed at the top ( hurray for me and f--- you ). That is because there are more workers than jobs . Most of our jobs were sent overseas for tax per-poises but mostly for creating more profit for the owners. That leads to tax breaks because headquarters was moved off shore . End result is larger profit for the company and less overhead for the company. The rest of the equation is just plain old fashion GREED at the top. The attitude of management today is I am the lord and master you are my slave . Kind of like Scrooge in a Christmas Carol .
Yeah, companies keep sticking to the idea that overworking their people and not giving raises or benefits makes them more competitive against companies that treat their workers like people instead of cattle.
I would think that having employees that actually gave a @!$%# about doing a good job instead of always talking amongst themselves about the bad morale and looking for job opportunities elsewhere, would be a better way to make you more competitive, but what do I know?
...I've been doing a "temp" job for nearly two years. no vacation, no sick pay, no raises, no benefits. I feel like I am permanently temporary.
Same here. Been working temp jobs since I was laid off in '08. No vacation, no sick time, took pay cuts just to get a job, no benefits, no retirement plans. No short term disability to help with my maturity leave this fall. I was informed that I was going to fill a full-time position but...sorry. Nice to see all the other full timers get raises and I get ignored. Can't put off starting a family forever or else we'll never have one. Time to start looking for the next temp position.
Depends greatly what your company does for work. Take any company that deals in manufacturing and I think you find that the outlook is not so rosy. Everything we sell has a direct relationship with crude prices, from materials to shipping, and our costs have been rising for the last year. We have been trying not to increase our selling prices, but have to now, or start laying people off.
No raise where I work. Haven't had a raise or perk for that matter in over 5 years.
More workers will be disappointed because the greedy business owners will only expect you to work harder and not want to pay you because it may cut into their profit. Even if you do get a raise the price of benefits will go up and we already see the cost of gasoline go up so you will still be realizing a set back. America doesn't care about the average working people. And certainly business owners could care less. If you don't want to work for nothing they will hire illegals or move their business overseas. The almighty dollars is all they care about and they have no loyalty whatsoever to American workers.
Just remember, that YOUR raise keeps the top management from getting THEIR so well earned bonuses.
I changed employers a year ago. I got about 5% in a pay increase over my previous employer, plus a yearly bounus that (this year) was 16% of my salary. The company I work for is in the automotive industry. Things are looking up. I was already given the merit increase letter for this year and will be making 3% more come this summer. It's not all gloom-and-doom. I have a good education and I work hard.
Deborah - lots of us have a good education and work hard. But I and many others I know have employers who see no reason to pay workers what we would have made just a few years ago - they know there are plenty of unemployed out there just waiting to put in a resume if we're not willing to do the job for peanuts.
That is something we have no control over, so stuff the "I made better decisions than you and that's why I make more" attitude. It depends more on the ratio of unemployed workers in your field than on your personal merits.
Deb, good for you! Glad that there are some people out there that are being treated fairly. I'm a well educated person and I'm a hard worker. Some of us just get the short end of the stick. I have a collection of short sticks! If I stay positive for others, maybe good fortune will come my way!
That is not my point. I CHANGED jobs in order to be in a better situation. I could have stayed at my previous job; it would have been the easy thing to do, Instead I took a chance and moved my family in order to take a position that improved my situation. And the "better decision" I made 20 years ago to get an education in a field which tends to be less volatile in a down economy BECAUSE there aren't alot of people who are good at it, DOES have something to do with it.
People who are complaining that they aren't getting raises and that they are "forced" to stay in a job they hate, working for people who don't respect them...vote with your feet. If you work hard and have skills (or can develop skills), you CAN get a job somewhere else.
Put the energy that you are putting into complaining about your situation into something constructive.
I don't need a raise I would like to be hired direct I'm tired of beimg a contract employee...
No raise here either in the year I have been with the company. I reduced their turn around time (repair business) from 2 months to same day on my own. Another employee has been there for 8 years and hasnt gotten a raise in 7. Meanwhile their stocks are soaring and their revenue is increasing. When are people going to finally say enough? Maybe walkoff's need to return?
But I have an interview next week for a higher paid position elsewhere. :)
Twice nothing is still nothing.
My boss is dragging her feet about doing my evaluation for my raise. She said she was very, very busy and couldn't get around to it now. One year half of us didn't get raises at all because of budgeting. She said to me without me saying anything like this, "we're not discriminating against you." I guess she meant and I hope this was only what it was that sometimes they have put off giving people their raises for six months, she being the one that I believe that happened to. Then I hope she didn't really mean to say to me, "you'll get your raise after six more months." I've got bills to pay, pardon my French, "up the butt!"
Ha! This story is VERY FUNNY! The feeling I'm still getting is that the word "raise" is a naughty word that shouldn't be spoken at work. Most people are being told they are lucky if they aren't a worthless contractor with no benefits. Employers don't seem to have any interest in giving out raises nor rataining good hard working employees. Any way to cut costs is considered the way to go. Fire the knowledgeable employee because you can hire someone right out of college or high school to do their job for way less. May not always be done right... but at least the company is saving money for the CEO's big bonus for doing nothing. Sorry, no bonuses for us little guys at my company. Trying to stay positive but I'm not stupid.
Money ...so they say ...is the root of evil today ....but if you ask for a rise it's no surprise that they're giving none away ~ Pink Floyd
Well let's see, Since the Bush Sub Prime Melt Down, My rent went up over 100%, Gas went up over 100% and wages haven't gone up in ten years.
So I guess I'll have to settle for no raise like my Boss just told me.
Just be Happy I have a Job!
I've been working for the same agency for 13 years had two promotions no raises one raise they took that away it was a proformance raise for the State. My boss thinks we make to much and are payed what the industry calls for, how that was figured out I don't know we regulate the industry know one else does our jobs to compare against. If you check out other States they make more then we do for the same jobs, I look at that 7 years ago except for 4 States. They were able to buy new furniture for the conference room for the third year in a row and new pictures that was nice.
“Employers should pay attention to employee expectations around pay and be more transparent to ensure employee sentiment is aligned with reality, which will help avoid disappointment that can impact morale.”
Just a couple questions on this:
1) Employers pay attention to employees?
2) Employees have expectations of reward for hard work anymore?
3) What is morale?
I work for a really big company that has had record profits every quarter for the 20 years I've been here. Every year the raise get smaller and bonuses are questionable right up to the day the numbers have to be submitted or paychecks are late. At least 3 times a year it is pointed out to us that the economy is in a bad condition and more people are being hired overseas while americans are being laid off.
This article is a joke.
The only way you get hired at the company I work for is if they qualify for a Tax Break for Hiring you, otherwise it's sorry, we can't use you.
The Ironic thing is that it is a Large Corporate Trucking Company that Transports a lot of Chinese made Products to all the Big Box Stores...
To get an Idea of how grueling the Job is, their Turnover Rate is 95%. In the Long Haul Trucking Business, you have to run so hard that you really have to destroy your health just to stay ahead of Basic Bills and going on Home Time, Forget about it! They tell you if you want to go home, Quit.
It would appear that real-world perceptions are very much at odds with the theme of this article. What the author seems to have overlooked is the fact that talk is cheap, but actions are what count (i.e. management promises a lot, but delivers very little). In spite of increased productivity, most of us have not gotten any raises for many years and our managements are not taking any actions to change that situation. I've not had a cost-of-living raise in five years (and, no, I'm not a bad employee) - don't see one this year or next year either. I'm from the Show-Me state (Missouri), so I'll believe it when I see it. Until then, articles such as this one are simply the rantings of some naive, misguided brain-washed puppet. Sorry, but the truth hurts sometimes.
Keep dreamin'.
The first company giving raises and hiring will get the best of the best.
You get the top 500, top 100 employers every year in Forbes. I'd like to see a user-driven site that lists employers who are or aren't giving raises, bonuses, certain benefits/perks, etc... Basically, who values their employees and who doesn't. So I don't have to waste my time submitting resumes and interviewing with employers like mine. Do any sites like this exist? If not, maybe even a simple Facebook user group would suffice.
If you think a hard-working employee who is more and more productive every year doesn't deserve a 3% raise in over 5 years, you don't deserve to have a business license.