All this talk of performance based compensation got me remembering and thinking....
The first story is about a previous co-worker/friend and myself. I'll call him Blake to protect the sometimes innocent. Blake was ~50 yrs old and stable in his job/career. He had just received his yearly raise and was complaining to me that it was too small. He commented that it was just barely above a cost of living increase, and that he deserved more. Since I had little empathy at the time and I saw his logic as flawed, I just couldn't help myself... I asked Blake:
- What new skill, knowledge, capability, etc had he gained in the last year?
- How was he able to do his job better, faster, more consistently, etc than a year ago?
- What additional responsibilities had he taken on at the company within the last year?
- What additional value, revenues, etc was he providing the company from year ago?
He answered that he had gained a little experience. However it turned out that otherwise, he was pretty much doing the same job in the same way as a year ago. So I asked:
- How much more would you be willing to pay for the same service by a contractor this year as compared to last year? (ie mowing lawn, house cleaner) Assuming that they are doing the same job in the same way.
He answered that probably very little or somewhere in the area of a cost of living adjustment. So I asked:
- Then why should our company give you a bigger raise???
He was very quiet, and very frustrated with me...
The upside is that though we now work in different companies... We are still good friends !!!
The moral of the story is that American's are willing to pay more for more value. And we are reluctant to pay more for the same or less value.
Also note that if you are not learning and increasing your value... You are actually providing less value and will likely be demoted, downsized, early retired, etc. (ie others are improving and changing)
With this in mind: keep learning, growing and adapting if you want a bigger paycheck and/or more job security !!! And expecting something for nothing rarely works out !!! Thoughts?
Ps. If you are a union member, you may be able to ignore this lesson. At least until you help make the company, system, etc so uncompetive that it implodes due to outside constraints that can not be controlled. (ie General Motors, USPS, USA Textile Industry, etc)