What will raises look like in a 5%+ inflation world? Will company use VCIP to compensate for inflation as VCIP is a 'one-time only' event whereas annual adjustments are compounded through the years. I personally think adjust should be mid-point at inflation ~5%.
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Vcip will be 13% and salary adjustments 5% U heard it here first
It will be loads and loads of money and a huge increment in salary. Go ahead, spend it all on credit now!
The midpoints and their adjustments (merit) are made based on market factors of our competitors through a survey firm such as Mercer. Inflation only plays a role to the extent that it impacts the salaries in the industry as a whole. The comp basis is more accurately a reflection of what the industry must pay for a certain role or level of experience etc… The abundance or unemployed, underemployed and highly experienced people looking for work in our industry places downward pressure on salaries.
Absolutely true, but remember you're talking to the participation trophy crowd.
Merit is market based not cost of living.
While they should make midpoint adjustments to account for inflation, I would rather see an attempt at a stable workforce. If they cut out or delay merit, that is fine as long as the cycle of constant layoffs can be stopped.
As Judge Smails in Caddyshack said to his weasel grandson, “You’ll get nothing and like it!”
Leadership Forum and especially ELT members will be rewarded handsomely for steering us through the ravages of the pandemic, while everyone else will be told they’re lucky to have a job. I’m old enough to to remember when they delayed merit increases (last year).
remember what we learned in the L48 townhall: the company cannot simply share the benefit of high commodity prices with employees because at some point in the future oil prices will be lower.
enjoy your 1.7% merit and 89% vcip
You personally think…
What do you professionally think?
Brace for another round of “cost savings”.