Archive for the ‘Compensation’ Category

Smallest Pay Raises in Decades

Employee motivation is usually most strongly influenced by an increase in compensation (a raise). The article, Pay Raises Are the Smallest in Decades, Surveys Show, indicates the average pay raises of the years to come, as well as the possible consequences of the small raises received this year.

`    Employees salaries have barely grown at all this year, and predictions for 2010 have not been very positive. Employers have increased salaries less this year than any other years in the past decades. It has been estimated that the most common pay raises for year 2009 were between 2 and 3 percent. The average raise was a measly 2.2 percent. Next year’s raises are predicted to be slightly higher having an average of 3 percent nationwide. Although this is an increase, it is still the lowest in 29 years.

The reason behind the employees receiving such lower pay raises is obvious. The recession has made 6.5 million workers out of the job since the end of 2007. Not to mention, millions receiving pay cuts or forced time off without pay.

How will this affect employee motivation? Judging by what I said earlier, you would imagine that employees would be less motivated and everyone would be performing poorly. However, this is not the case. Employees strive to work harder and reach the goals just so that employers know who is needed or will help most. Job security is now one of the primary motivators in our workplace.

I feel that, although this is a good form of motivation, it is not healthy to be the primary means. Most employees work best in a low-stress environment where they aren’t worried about losing their jobs any second. Humans are a company’s most important asset, and causing them to be out of their comfort zone at work will not result in the most productive work environment.

-Andrew Campbell

References

Sanserino, M. ( 2009, July 21). Pay raises are the smallest in decades, surveys show. Wall Street Journal, p. D-1. Retrieved October 1, 2009 from ProQuest Newspapers database.

Fluctuating Costs and Budgets

A change in the price of our necessities can greatly affect our budget. As a manager, these necessities include our building, utilities, supplies, equipment, salaries, and a perfect example is fuel for our employee vehicles. It may not seem like much, but a simple $0.25 rise in the price of all our utilities could leave to a $15+ rise in our weekly bill. Over a month or a year, these bills quickly add up.

Gasoline prices are one instance where prices fluctuate quite frequently.  Over the past 3 years, the national average price for gasoline in the United States has risen from $2-$3 per gallon in 2006 to topping off at $4.12 per gallon in 2008 to $1.61 in 2009. Now, it is slowly rising again and is currently at $2.43 per gallon….

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