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salary increases instead of hiring more people?

Started by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009
Discussion about
Is it true that many businesses are choosing to give bigger increases in salary and bonus to current employees instead of hiring more people? Haven't seen any news on it yet, but the topic is coming up in social gatherings. It's leading to complaints of over worked instead of underpaid for those who are employed. The unemployed are of course not happy to hear that as well. If true, it will increase the income of some but keep many unemployed longer. Not sure about the net impact on rents/RE prices, but it'll probably result in more stress for people. Any thoughts?
Response by NYCMatt
almost 16 years ago
Posts: 7523
Member since: May 2009

Unfortunately, these days you're either employed and grossly overworked or unemployed.

Gone, it seems, are the days of having a healthy work/life balance, not to mention a healthy workload balance while AT work.

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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008

japan went through this long time ago. now the more looked after jobs for those in their 20s and 30s are public jobs, postman at the top.

interesting how the labor mkt has its own cycles on the suppy side too. the rat race/workaholism leads to take it easy/hippy/walden mentality.

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

Matt, a healthy work/life balance is one of top priorities. In fact, I would not consider myself to be successful unless I have achieved that.

There are actually plenty of people who are not overworked. Usually only the ones with good work ethics are overworked. That appears to be true even when unemployment rate is high.

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

...one of [my] top priorities.

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Response by NYCMatt
almost 16 years ago
Posts: 7523
Member since: May 2009

When I went to my 20-year high school reunion, I ran into two classmates, one now living in California, the other in Illinois. Both had been in high-paying (200K-ish) jobs, one in computers, the other in sales. Both are now mailmen. They chucked the 60-80 hour workweeks and huge (but volatile) paychecks and bonuses mostly for the guaranteed pension and health benefits and the guaranteed 40-hour workweek.

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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008

> "Usually only the ones with good work ethics are overworked."

work ethics = willingness to be overworked on behalf of the owners of the company.

> for the guaranteed pension and health benefits and the guaranteed 40-hour workweek.

i don't see that pensions and health care being there (totally underfunded), but the benefits of normal hours and being able to be outdoors, to walk, ... are real. in japan even those in their 80s doubt their pension benefits will be there for them. that's the reason they hold onto their savings. they know exactly how unfunded the pensions are and how much debt their country is in. big difference with usa, but we will be there in 10 years imho.

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

So they 'went postal' to reduce stress and for more stability/hours? :)

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Response by jimstreeteasy
almost 16 years ago
Posts: 1967
Member since: Oct 2008

matt..it may be true..but do you not see how incredible that story sounds,as in hard to believe?

One high school. Two different people living in two different states. They take huge pay cuts for the same reason. Both earned 200k a large component of which were bonuses (that is not always the case with such salary levels). Both worked 60-80 hours.

Even having two mailmen in your hs class, no matter how they started, sounds dubious.

did you get carried away in your enthusiasm to tell a good tale?

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Response by jimstreeteasy
almost 16 years ago
Posts: 1967
Member since: Oct 2008

by the way, you can respond, "yeah i know it sounds incredible,but it's true"...or do you not think it sounds incredible?

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

Matt, how many different careers have you had over the years? I bet there's an interesting story there.

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

I didn't get a chance to go to my HS reunion a few years ago, but based on the comments from the reunion website, they were all over the country in various fields. I think my graduating class had over 500 students.

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Response by NYCMatt
almost 16 years ago
Posts: 7523
Member since: May 2009

"Even having two mailmen in your hs class, no matter how they started, sounds dubious."

Don't hate me because I'm remarkable.

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Response by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009

There's also a trend in increasing base salary while reducing bonus. This might encourage these people to get/afford larger loans...

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