I had lunch with one of my friends yesterday. He voiced his dissent that he has been receiving either a 3% or no raise in the last few years. He said that he is a hard working person and that he is getting really discouraged because he wasn't properly compensated. I understand and empathize his frustration because I consider him not only a diligent but a good performer in what he is doing.

I thought about his issue on wage raise after lunch and this was my initial reaction. For the past 2 years, 3% is generally considered the inflation rate in this country. The economist in me is saying that if someone is given an annual 3% raise, he/she isn't getting any raise at all because despite the 3% wage increase, his/her wage was adjusted sorely for inflation and not for his/her performance or even extra workload. In other words, real wage for my friend has remained unchanged and in the years when he received no pay raise, his real wage has actually gone down. Worse, my friend has been filling in the jobs of people who were let go due to corporate downsizing a few years ago. With his above-average performance, proven experience, and added responsibilities, shouldn't he deserve a raise that is beyond a mere 3%?

11/18/2005 1:35:27 AM (Eastern Standard Time, UTC-05:00)

Comments [1]

Business