Inflation and the Responsibility of an Employer

[BraggSurvivor]

Is it the responsibility of an employer/should it be the responsibility of an employer to compensate his employees for national currency inflation/devaluation through a wage adjustment - as a matter of course?

Your thoughts or comments?

[Sam Reeves]

Do you mean COLA?

[Rick]

It sort of depends on the company's financial position doesn't it?

[crashdive123]

Is it the responsibility of an employer/should it be the responsibility of an employer to compensate his employees for national currency inflation/devaluation through a wage adjustment - as a matter of course?

Your thoughts or comments?

The short answer is no. It is the responsibility of the employer to run a successful and profitable company. That being said, the employer has to provide a job and working conditions that attract and retain employees and keep them from leaving for "greener pastures".

[Alpine_Sapper]

It's the employer's responsibility to ensure the wage and benefits he pays will provide a sustainable comfortable life for his employee's at that skill level.

[Rick]

Alpine. Are you kidding? The employer has only one responsibility, to ensure a reasonable rate of return for his investors. If he is a sole proprietor then the investor is him. The rest is controlled by the market place. The employer doesn't owe you anything. If you don't like the wages or benefits then go some place else.

I would certainly agree that proper ethics would direct an employer to do as you suggest but it is in no way a responsibility.

[BraggSurvivor]

*<looking into a crystal ball>*

I am an employer. When jobs were plentiful and the more shiftless of the bunch demanded raises, no one was around to help me out.

If you will guarantee me that I can raise the prices I charge to the customer base and NOT suffer a drop in revenue because of price elasticity of demand for my product, I will guarantee such a wage adjustment.

As there has been no such repeal of this particular economic law, I cannot make such an adjustment without risking going in the red and ultimately out of business.

Ae we going to reach a point where people are grateful just to have a job?

[dragonjimm]

Don't go around saying the world owes you a living. The world owes you nothing. It was here first.
Mark Twain

[Alpine_Sapper]

Alpine. Are you kidding? The employer has only one responsibility, to ensure a reasonable rate of return for his investors. If he is a sole proprietor then the investor is him. The rest is controlled by the market place. The employer doesn't owe you anything. If you don't like the wages or benefits then go some place else.

I would certainly agree that proper ethics would direct an employer to do as you suggest but it is in no way a responsibility.

@Dragonjimm - I never said anyone owed me anything except what I've worked for and was agreed upon before hand. Read the following if you want an explanation.

@Rick - No, I'm not kidding. You can see it however you want, but the reality of the situation is the employer is responsible for the people that take care of him. Like I said, at each skill level the wage and benefits have to equal or exceed what the current standard is, or you won't have quality people to help you succeed. You want loyalty, honesty, integrity from your employees? You want them to give 110%? Make sure their compensated. You want to be a cheap skate miserly asshole? You have people who can't get employed anywhere else working for you. That's fullfilling your responsibility to your investors...To make sure you compensate well enough that you can retain QUALITY people.

And if I put in 40 hours a week busting my *** for someone, how can you say they don't owe me anything? They owe me my wages, and my benefits that were negotiated, and if they don't give it to me, it's going to be a lawsuit.

[Alpine_Sapper]

I just went back and re-read Bragg's original post, and I probably came off as unclear...

My current employer has not raised our wages in light of the economic crisis. In fact, our health benefits went up ~$5/month for each plan. wow. Big crunch. But what they did do is reconfigure the bonus structure so there is actually a possibility that we can still recieve a bonus in the current crunch. That's what I was talking about. Was it over the top? No, it was just enough to show us they care about the people they have working for them and they haven't forgotten about us, and they understand some of us may be struggling.

In my opinion, it is the employer's responsibility to do that kind of stuff for their employee's, or they will go somewhere else.

[Chuck]

The employer owes you just what was agreed upon you were hired and in those dollars period. If that isn't enough to support the lifestyle you want get a second job. There has been many times I've taken a second job to something I wanted. Anytime you take someones money you owe them your loyalty. I wouldn't trust an employee if I had to buy their loyalty.

[Rick]

I agree with everything you said except the word "responsibility". You are correct, union or not, you enter into an agreement with an employer. You exchange your time, talents and knowledge for some form of renumeration. Beyond that, the employer is only responsible to make a profit. Either as a return on investment for the shareholders or to reduce owner's equity if he owns the company (with the exception of businesses that have an eleemosynary purpose such as hospitals or schools). Everything else becomes a "social responsiblity".

I work for Alpine Brewery making Sapper beer. I'm a fork lift operator on the dock and I make $10 an hour. I also have a major medical plan that covers catastrophic illness only. It costs me $130 a month for the family plan and it does not cover dental or eye glasses.

I walk into your office, drop a printout on your desk and say, "I saw your posting on WSF last night and to be honest, I can't make ends meet at $10 and hour and I think the medical program costs too much for what I get in return."

What are you going to say?

What would you say if I were your brewmaster making $30 an hour? Or your Sales Manager making $100 per hour. You see the dilemma you encounter?

Social responsibilities can only take place in a company that has a sound financial basis and a growing revenue. If the true responsiblity of making a profit isn't realized then nothing in the social responsiblity realm can occur because the business can not sustain itself.

[Alpine_Sapper]

The employer owes you just what was agreed upon you were hired and in those dollars period. If that isn't enough to support the lifestyle you want get a second job. There has been many times I've taken a second job to something I wanted. Anytime you take someones money you owe them your loyalty. I wouldn't trust an employee if I had to buy their loyalty.

Any employee you're paying you're buying they're loyalty. Otherwise, why would they be there? Because they like you as a person and want to work for free?

That's just retarded. If I work for you for 5 years, and you're still paying me the same wages, and when i come to you and tell you that I need a raise, and you hand me that line of crap, you're gonna be swallowing your teeth, man. And i don't owe anyone loyalty because they gave me money. I owe them loyalty because they treat me fairly and show that they are loyal to me, as well. When the wages the company pays falls below the industry standard for my qualifications, I'm gonna go where I will be fairly compensated for the work that I perform. Not only do I expect time-baised raises of at least 5%, I also expect assest raises as my skillset grows and I get the documentation to prove it.

I paid good money to learn a specialized skill set not just anyone who can perform manual labor can do. Hell, before to much longer I'll hold a certification that has only been granted to 117,000 people WORDLWIDE. If you want my loyalty, and the skillset that I bring to the table, you have to compensate me.

[Beo]

It all depends on the type of employer, doesn't it? Private Company, Local Government, State Government, or Federal Government jobs. Private meaning like working for P&G or GE, a car dealership, or heating & cooling company, krogers, or cable tv or what have you. But in government jobs meaning police, fire, hospitals, electirc company, sanitation or whatever kinda jobs... I believe government jobs have a right to a cost of living raise to its employees.

[Alpine_Sapper]

I agree with everything you said except the word "responsibility". You are correct, union or not, you enter into an agreement with an employer. You exchange your time, talents and knowledge for some form of renumeration. Beyond that, the employer is only responsible to make a profit. Either as a return on investment for the shareholders or to reduce owner's equity if he owns the company (with the exception of businesses that have an eleemosynary purpose such as hospitals or schools). Everything else becomes a "social responsiblity".

I work for Alpine Brewery making Sapper beer. I'm a fork lift operator on the dock and I make $10 an hour. I also have a major medical plan that covers catastrophic illness only. It costs me $130 a month for the family plan and it does not cover dental or eye glasses.

I walk into your office, drop a printout on your desk and say, "I saw your posting on WSF last night and to be honest, I can't make ends meet at $10 and hour and I think the medical program costs too much for what I get in return."

What are you going to say?

What would you say if I were your brewmaster making $30 an hour? Or your Sales Manager making $100 per hour. You see the dilemma you encounter?

Social responsibilities can only take place in a company that has a sound financial basis and a growing revenue. If the true responsiblity of making a profit isn't realized then nothing in the social responsiblity realm can occur because the business can not sustain itself.

I see your point, and agree. Those decisions are going to be based on where his pay is at with the industry standard, and how he performs as an employee. Is he the best forklift operator we have? Can we afford for him to go somewhere else? Forklift operators are normally paid $12/hour...Is he worth paying the industry standard, or would the cost of training be worth letting him go elsewhere where they will compensate him fairly, and I pay some tradeschool kid who can drive a forklift $10/hr who'll be glad to get the pay raise from minimum wage, and will be able to be molded into an employee worthy of $12 an hour?

but as long as the company is doing well, if you want to continue doing well you have to take those social factors into account if you rely on employee's. If you have 5 people and can run the business by yourself if you have to? Let'em leave if they want. But if you can't run your business without your employees, you have to make sure they can survive, because if they can't, they will go elsewhere, and then not only do you have to hire new people who don't know the ropes and your company is going to lose money, you're also out the training cost of bringing those people up to speed.

[Rick]

Man. Good luck on those raises. I can tell you 2.5% to 3.0% is about the norm. And not many companies offer a raise for the successful completion of a class. If you have an employer that delivers those, stay with them because not many do. Especially in today's environment.

Just a bit of inside scoop for everyone. Have you ever gone to a job fair in hopes of landing a job? Ever filled out the applications that say, "What is your current salary?" followed by something like "Salary must be filled in to be considered for employment."?
Many companies attend job fairs solely for market research with no intention of offering jobs. They collect the salary data to determine where they are in relation to the industry. It's a cheap and very effective tool to find that out. It let's them know if they are paying their employees too much, too little or if they are on target.

I don't mean to imply that all companies do that or the only reason companies participate in job fairs is for research but you need to be skeptical of those requiring salary input to be considered. Just a bit of info you might be able to use. That might also be the reason you didn't get the call you were waiting on.

Another thing to consider is your credit score. More and more companies include your credit score in their back ground research on you. If you are not able to handle your finances in a responsible manner then you probably won't make them a good employee. So goes the theory.

[Rick]

Alpine - Agreed. It's terribly expensive to release an employee for any reason once they have surpassed the job's learning curve. You've invested time and money in training them so it's often less expensive to offer them a raise to keep them than it is to hire a replacement and suffer through the learning curve again. Many managers/owners focus only on the loaded rate per hour and don't realize the lost productivity costs associated with letting an employee go elsewhere.

Curious Beo, why do you think government jobs deserve a COLA? I'm not disagreeing just interested in your reasoning.

[Sam Reeves]

It's the employer's responsibility to ensure the wage and benefits he pays will provide a sustainable comfortable life for his employee's at that skill level.

Obviously you have never been self employed and employed other people. It's the employer's responsibility is to pay himself first.

[Beo]

Well lets take my job as a Deputy Sheriff for instance, you want me to scoop up all the crap bags running around the county but as the cost of living goes up you wanna pay me less than I need to live on for putting my life on line. Now I got 16 almost 17 years in so unless I really screw the pooch you can't just fire me, my FOP contract says I get a 3% 1st year, 3% 2nd year, and 4% the last two years of the 4 year contract but this year they say no raises for anyone in the county as the budget won't afford it. So how will the contract go? You gotta give me rasie or else who's gonna patrol the county and city? My training is to valuable to just get rid of, they've spent thousands of dollars on training me and still are (I'm on the hazmat team, SRT, a defensive tactics and taser instructor, and fugitive recovery team), they want me to work long extended hours of 14 to 16 hour work days and not give me cost living raise since the president screw'd the econemy and its going into the crapper.
Police, Fire & EMT, Hospital, and other emergency personal should get at the minimum a cost of living raise.
Just my humble opinion.

[Alpine_Sapper]

Obviously you have never been self employed and employed other people. It's the employer's responsibility is to pay himself first.

And obviously you don't know anything about me. I have my own company, and I make sure the people that help me run it are compensated as fairly as I am. without them, it wouldn't exist.

[Alpine_Sapper]

Man. Good luck on those raises. I can tell you 2.5% to 3.0% is about the norm. And not many companies offer a raise for the successful completion of a class. If you have an employer that delivers those, stay with them because not many do. Especially in today's environment.


I know. I've become spoiled working for my current employer. :) And it's not the successful completion of a class, but a newly attained certification. Tech certs are like gold on a resume. But not only is it passing the cert test, it's passing an additional company test to move to the next pay bracket. But if you passed the test, the only additional info will be company specific policies. Anyone can say, sure, I know linux, yada yada. They may even be able to throw out enough buzz words and grasp enough basic concepts to bs their way through the interview. But having a certification is like having a degree...It's something from an accredited institute that says "Yes, Apline Sapper does indeed know what he says he knows." Stamped and verified, here's his serial number. It's impressive to customers when the company can say, out of 200 support technicians, we have 180 RHCE's, or MCSE's, or whatever the case may be. In fact, it's more impressive when you can say you have more certified engineer's on this piece of soft/hardware than the company that develops it. :)

[Sam Reeves]

And obviously you don't know what you're talking about. I have my own company, and I make sure the people that help me run it are compensated as fairly as I am. without them, it wouldn't exist.Actually without the owner/founder the company wouldn't exist. I hope you are in business ten years from now.

[Beo]

Actually a cost of living raise is just and fair to anyone in the work force, problem is fair and just isn't a lot of employers problems when it comes to paying wages as long as they meet the minimum wage requirement, and our military is grossly underpaid as our teachers and law enforcement.

[crashdive123]

I think an important thing to remember in a discussion like this is the job. Is it your job? I say no it's not. It's the employers job and you are the person filling it. I agree with the comment that you are "owed" nothing but what is agreed upon when you started working for a particular employer. I just kind of chuckle when I hear the comment "well it's my job". No it's not.

[trax]

I believe whatever is "owed" on either part should be clearly defined at the initiation of the job. I'm selling a specific set of skills, the employer I'm selling them to should be the best price I could get at the time. Inclusive with that skill set is a promise to apply those skills to accomplish tasks that the employer needs to have done. It is the employer's job, I've been contracted to fulfill those tasks for any number of reasons that are the employer's, possibly time constraints on the employers part. As an employer, or as the employer's on site representative, do I owe more to my staff because the cost of living is rising? Nope. We have a deal. Should I offer more to employees? Probably, at least the ones I want to keep. It's good management practice, so are bonuses, but I'm not in a position where I can offer them to the people I'd like to offer them to. I'm in a situation where salaries are pre-determined by funding arrangements with a lot of different agencies, so even if I want to, I'm stuck.

There is also the employee's responsibility to perform those duties, and apply those skills which the employer purchased. Oftentimes in this day and age it can be very difficult to get rid of someone who doesn't, so can I take money back from that person? Nope, same difficulties exist.

[Rick]

Cost of Living Allowances are terribly misleading in a lot of cases. While they are often tied to the Consumer Price Index (CPI) there is nothing that says they have to be. In fact, there are a lot of ways to calculate the base for COLAs. While they sound tempting on the surface there are a few things that need to be considered when a COLA is offered. 1. Most wages have increased faster than cost of living expenses so wage increases would actually be higher without the COLA. 2. Most COLAs are backward looking, that is they try to establish what the rate WAS not what it is projected to be, which is what you will have to pay. 3. They are almost always considered on a pre-tax basis, which means you truly never accrue the actual cost of living but the cost of living minus your tax rate. 4. The rate of increase can project you into another tax rate table, which will really negate any benefits or gains you would have otherwise seen. 5. Some COLA increases are nothing more than periodic raises with no discernible base and therefore no true relationship to actual cost of living and, 6. While it is not likely in the foreseeable future, should the cost of living go down you would have to give up some of your wages.

It's the old adage, "Be careful what you wish for. You just might get it."

[Beo]

So what is your take on gooberment jobs Crash, such as police, fire, and the such? Should they get a cost of living raise at the end of the contract years even if the gooberment, local, state, or federal say no.

[Beo]

So you guys don't believe in COLAs? Hmmmm. Well mine are contracted yearly raises, thank God for that.

[trax]

My take on a lot of jobs is that governments needs to be shaken up side down by the ankles to get some sense into them. Those jobs include police, firefighters, emt's, teachers. I've always said a whole lot of budgets need to be totally revamped and revisited, we never seem to put our money where our priorities should be.

[Rick]

I agree with Trax. The very folks we depend on the most are the very folks we have a reluctance to enrich. Teachers (what's more precious than our children?!), First Responders (I COULD give you CPR but since you don't believe in COLAs...), Police, Fire, etc.

I think we should take all the money lawyers collect and divvy it up to the above mentioned folks. Whadda think, Ken?

[Beo]

Now the cost of living as of right now in the US has gone up quite a bit, and the employer expects the employee to do the same job (if the company is gaining and growing even more work) for the same amount of pay, not right to the employee. As your company grows and the work load increases and more responsibilities are given to the worker and he or she does a great job then is he or she suitable for a raise be it COLA or otherwise, and should the employer expect the employee to do more work for the same pay?

[trax]

The cost of living is going up for the employer too, partner. If the employee is doing more work, then yeah, more money, but same job=same pay. Unfortunate, but what you going to do? Cost of living going up doesn't necessarily mean that the employer has the resources to offer raises.

[Rick]

The reverse is also true. If the employee receives a raise shouldn't the employer expect greater productivity?:rolleyes:

[trax]

The reverse is also true. If the employee receives a raise shouldn't the employer expect greater productivity?:rolleyes:

Ah ha! And in some instances, how does that even get measured? And in a lot of instances, it's been shown that greater productivity because of a raise usually fizzles out after about two weeks and then, same old same old back to the grind thinking.

[Rick]

Actually, GE proved that any change in the work environment created an increase in productivity. (Their old increase the light trick, remember that one). I used to make changes every couple of weeks to keep productivity high. No, actually I just liked screwin' with everybody.:D

[Beo]

If you pay more then you should expcet better and more performance, but if you give more work should the worker get more pay?
I say yes.

[Rick]

If it were only an ideal world.

There is a well known ratio in business called the 80/20 rule. 80% of the work is given to 20% of the people. We tend to give the work to those employees we trust and know will deliver rather than the deadbeats that just take up space.

[Beo]

There's also the act of firing the lazy azzes.

[Rick]

You've never dealt with HR have you? Human Resources is actually composed of Zombies. Individuals that have no brain function yet still continue to exist.

I had a young lady that had a severe drug problem. We had placed her on probation twice and had set her up for intervention through the employee assistance program (HR would not authorize dismissal). The morning she was to report to the detox center she was AWOL. She called a couple of hours later and said her grandmother had died and she was in Mississippi.

"I need the phone number where you are so I can call you back and verify." I told her.
"I'm at a pay phone and there isn't any number on it."
"Then you need to find one. Exactly where are you in Mississippi?"
"About 30 miles south of Biloxi."
"What's the name of the boat you're on?"
"What?"
"If you are 30 miles south of Biloxi then you're in the middle of the Gulf."

I fired her.

[Sam Reeves]

There's also the act of firing the lazy azzes.

Yep. Dead weight drags everybody down.

[Beo]

HR is a needed entinity, but they work for the employer so dismissing someone is not as big a deal as one would think, if there are levels of seperation or progressive discipline then they should be followed, unless there is gross neglegence. In the case you mentioned Rick firing was apropriate (guesss that spelt right) any drug usage is grounds for termination IMHO, but then double dipping is wrong in my book too and so much of that goes on it sickens me.

[trax]

Think...motor vehicles branch, taxation, offices like that. People manage to survive their jobs and continue to collect pay checks by very carefully doing as little as possible. They don't do anything to get themselves disciplined or fired either, those are the hard ones to get rid of Beo and the most costly. Like Rick said, it's the 80/20 split. I've got maybe 3 staffers that I trust to get things done and in my organization, that means programs for youth, elders, the needy, just aren't functioning sometimes. It sucks, but I'm stuck with them AND they have a union :mad:

[GVan]

Is it the responsibility of an employer/should it be the responsibility of an employer to compensate his employees for national currency inflation/devaluation through a wage adjustment - as a matter of course?

Your thoughts or comments?

I've been yelled at for talking politics. Guess what, this is one of those subjects I'm going to steer clear of.

[Rick]

Hey, GVan. Quick with the politics. Okay?!

[Rick]

I've got my lazy eye on a lift bridge operators job. I figure I can sleep most of the time. The boat horn should wake me up. Press the UP button. Wait. Press the DOWN button. Sleep. I can handle that.

[crashdive123]

So what is your take on gooberment jobs Crash, such as police, fire, and the such? Should they get a cost of living raise at the end of the contract years even if the gooberment, local, state, or federal say no.

I don't think it matters if the job is local, state, federal or private sector when it comes to cost of living increases. It is, and should be IMO a function of your (or your unions) negotiation of an employment contract. If your employment contract allows for cost of living increases that are tied to inflation, fine. If they don't, they don't.

[BraggSurvivor]

Actually a cost of living raise is just and fair to anyone in the work force, problem is fair and just isn't a lot of employers problems when it comes to paying wages as long as they meet the minimum wage requirement, and our military is grossly underpaid as our teachers and law enforcement.

Wages have never kept up with inflation.

However, in a hyper-inflationary environment, if employers don't at least make an effort, we may reach a point where few can AFFORD to have a job. Food, fuel and housing costs will keep them in the breadline and not wasting money and fuel to go to work.

[Rick]

Wages have never kept up with inflation.

Honestly, where DO you come up with this stuff. Of course it has. In fact, wages generally exceed the rate of inflation. The average wage increase is somewhere around 3 - 3.5% (I've seen varying numbers). Even last year, the rate of inflation was as low as 1.97% and remained below 3% until the 4th quarter.

http://www.inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx

[BraggSurvivor]

Honestly, where DO you come up with this stuff. Of course it has. In fact, wages generally exceed the rate of inflation. The average wage increase is somewhere around 3 - 3.5% (I've seen varying numbers). Even last year, the rate of inflation was as low as 1.97% and remained below 3% until the 4th quarter.

http://www.inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx

Come on now Rick, did you really have to ask?

Pure and simple Braggenomics.


:D

[crashdive123]

Come on now Rick, did you really have to ask?

Pure and simple Braggenomics.


:D

:D:DSo...what??? You make stuff up, throw it against the wall and see what sticks???:eek::eek::D

[BraggSurvivor]

:D:DSo...what??? You make stuff up, throw it against the wall and see what sticks???:eek::eek::D

Not really...... my gears are always turning. ;) I call it a "RickTheSuperModerator" thing.

:D

[Rick]

So...You're sort of the Bear Gryllis of the WSF, then?

[crashdive123]

So...You're sort of the Bear Gryllis of the WSF, then?

:eek::eek: OUCH :eek::eek:

[BraggSurvivor]

So...You're sort of the Bear Gryllis of the WSF, then?

The mountain climber guy?

[Rick]

Uh, yeah. Sure. That's the one.

[BraggSurvivor]

OK, and you can be Scott Thomas "the dog killer" Beauchamp. ;)

[Rick]

No thanks. I Gotta Be Me.

Whether I'm right or whether I'm wrong
Whether I find a place in this world or never belong
I gotta be me, I've gotta be me
What else can I be but what I am

[trax]

The mountain climber guy?

More like the 'mountain falling off" guy I think Bragg, but yeah you got the right guy

[crashdive123]

Is it the responsibility of an employer/should it be the responsibility of an employer to compensate his employees for national currency inflation/devaluation through a wage adjustment - as a matter of course?

Your thoughts or comments?

For those of you that think it is the responsiblity of the employer to......... turn the question around a bit. For employees that are well compensated for their work in the form of wages and benifits - do they have a responsibility to the employer to cut those wages and benifits if the employer is struggling?

[Alpine_Sapper]

For those of you that think it is the responsiblity of the employer to......... turn the question around a bit. For employees that are well compensated for their work in the form of wages and benifits - do they have a responsibility to the employer to cut those wages and benifits if the employer is struggling?

There's a difference between the economy struggling and the employer struggling. If the employer is struggling because of the economy he probably doesn't have the ability to compensate his employee's anyway, which is ultimately going to cause the business to go under when people start jumping ship for more profitable companies. Not guaranteed, but a good likelihood.

From the way your statement above reads, it would work like this...when my employer makes a crappy business decision, my wages would take a hit. But, if I make a crappy personal financial decision, then my wages would get increased to compensate.

My point is, and has been, that if you want to keep the quality people you have, pay them more to help them make it through the rough times, but not to the extent it starts to hurt your business. Even a 2% raise to your key people would be appreciated, if kept on the DL. If you don't care about your business, keep paying them the same wage for the same job without any benefits for time served. See how long they stay. If they actively work to make themselves a better asset, whether for you or for their resume, and you don't compensate them for it, they'll be a better asset helping your competition. If you can't afford to give out bonuses, go get everybody a $50 gas card. You'd be amazed at the loyalty and relief you'll see on peoples faces.

But most business owners tend to be "sharks" and not willing to help out their people because they're too concerned with lining their own pockets. (Rick, we've had this conversation before...)

[Sam Reeves]

Honestly, where DO you come up with this stuff. Of course it has. In fact, wages generally exceed the rate of inflation. The average wage increase is somewhere around 3 - 3.5% (I've seen varying numbers). Even last year, the rate of inflation was as low as 1.97% and remained below 3% until the 4th quarter.

http://www.inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx

Gas, groceries and property taxes only 1.97%, Rick?

http://inflationdata.com/inflation/Inflation_Articles/Definitions.asp

[crashdive123]

Alpine - I think that you are making an assumption that was not in my question, so let me clarify in case I wasn't clear. As in Bragg's original question - the employer is struggling due to economic pressures, not poor business descisions. So my question isn't about longevity raises or bonuses. It is about paying them more because the economy is causing hardships. I disagree with your idea about giving your key people an increase on the "down low". That is a sure way to spell disaster for any company. So, just in keeping with Bragg's theme, but with a twist - do they have a responsibility to the employer to cut those wages and benifits if the employer is struggling?

[Teotwawki]

"From each according to his ability, unto each according to his needs." - Karl Marx
---
The best way to provide extra compensation to an employee is through some sort of profit sharing mechanism. If the biz does well so do the employees. If the biz does not do well...
---
Teaching: I taught for a few years as a second career in the nearby town. There is a McDonald's billboard on the way in to town advertising Asst. Mgr. positions - the billboard posts the starting salary which is $1,000 more than the local starting salary for a teacher. As a teacher, I tracked my hours and calculated that I was making less than minimum wage and that did not take into account spending out of my own pocket for supplies and materials. It also was by far the most stressful job I've ever had and I came from a "Big Giant MechCorp" that has a reputation for a cut-throat culture.

[Rick]

Sam - Just read the post and the data on the link. August 2007 was 1.97% just as I said. I have no idea what you are trying to say with your link.

Teotwawki - I also tend to agree with profit sharing. Of course, I believe in most things that develop a tie in for the employer and employee. After all, both have the same basic goals, wants and needs. It's much harder for a mega corporation to have direct employee participation in business decision making but certainly not impossible. For the smaller company, I think a lot of business decisions should be made with input from the employee. From building the company Mission Statement to re-investment in the company, sales, promotions, etc. To me, the employee is the single most important and versatile element in a business and their ideas and thoughts can be just as cutting edge as the owners. Well, not mine, of course, mine are cutting edge even for cutting edge people.:D

[yellowcab]

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[yellowcab]

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[yellowcab]

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[yellowcab]

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