Why are people who jump ship rewarded, when loyal employees are punished for their dedication? The answer is simple. Recessions allow businesses to freeze their payroll and decrease salaries of the newly hired based on “market trends.” These reactions to the recession are understandable, but the problem is that these reactions were meant to be “temporary.” Instead they have become the “norm” in the marketplace. More importantly, we have all become used to hearing about “3% raises” and we’ve accepted it as the new “norm.” John Hollon, former editor of Workforce, remembers when “5% was considered an average annual pay increase.” The amount of fear the media created surrounding the recession and its length has given companies the perfect excuse to shrink payroll and lower employee salary expectations in the long-run. The world is desperate for skilled labor and companies around the globe are starving for talent. Companies can tout technology replacing labor, but it is only exacerbating the global shortage of human capital and skilled workers. This means that we as employees are positioned better than ever to leverage our abilities for increased pay.
Posted on: Sun, 29 Jun 2014 21:45:39 +0000
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