I got such a chuckle out of this one – according to Bloomberg, annual pay raises for employees are bad:
A once-a-year payment schedule is too infrequent to change someone’s work ethic. In theory, money signals how good (or not) someone is at their job. But, it’s impossible to give someone feedback on an entire year’s worth of work with a nominal pay increase. Plus, it’s rarely an indication of how well someone did the job over a full year. Managers don’t remember how people performed all year long, and they admit to rating sub-par workers the same as stand-out employees. Workers also complain that hearing about their flaws once a year gives them no chance to respond and change behaviors.
Awww … so to help the poor workers complaining about those traumatic once-a-year performance reviews that go with their raises, we’re going to spare them the pain and the misery by not giving them any raise at all. I get it now. Makes perfect sense.
Don’t worry, though. GE, a pioneer in screwing over the American treasury by its innovative tax-avoidance strategy, has a new compensation system designed to replace the old and worn-out pay-raise paradigm:
GE Company, which recently moved away from the annual review, is considering scrapping annual compensation hikes. “We uncovered an opportunity to improve the way we reward people for their contributions,” Janice Semper, GE’s head of executive development, told Bloomberg. GE declined to elaborate on what its new system might look like, but Semper cited the vague goals of “being flexible and rethinking how we define rewards.”
I see. They’re going to “be flexible” and “rethink” everything. They’ve scrapped annual raises but haven’t replaced it with anything comparable, much less better, for employees. Maybe that’s why she “declined to elaborate” when asked what their new compensation “system” would be.
The reason these traitorous multi-national corporations are getting rid of raises is the same reason they cheat on their taxes – it saves them money. As the article pointed out, you can give bonuses instead of raises. No corporate profit, no bonus. Failed to meet a sales goal, no bonus.
Huge corporations have no loyalty to the American government, the American worker, or the American taxpayer. The sooner you realize this, the better off you will be. Huge conglomerates own all of the major media. So when they take away your annual raise this is the kind of article you see – they get the “news” outlets they own to frame it as a good, necessary and positive thing.
Don’t fall for it.