Bored Panda works better on our iPhone app
Continue in app Continue in browser

BoredPanda Add post form topAdd Post Search
Tooltip close

The Bored Panda iOS app is live! Fight boredom with iPhones and iPads here.

Company That Made $15 Million In Profit Refuses To Give Worker A Well-Deserved Raise, So They Quit And Everyone Else Follows Suit
523

Company That Made $15 Million In Profit Refuses To Give Worker A Well-Deserved Raise, So They Quit And Everyone Else Follows Suit

ADVERTISEMENT

With inflation rising and little relief in sight, consumers are feeling the pain of higher prices. For employers, this puts upward pressure on resource management—to hold on to workers, they must revamp their compensation strategies.

But not everyone is getting the memo.

A few days ago, a Reddit user who goes by the nickname NonVeganMillennial submitted a story to the ‘Antiwork’ community, describing what happened when they asked for a pay raise.

Despite having more than enough to set up a fair salary system, the higher-ups decided to save a few pennies and deny the Redditor’s request, doubling down on their existing policy.

However, in just a few months, this cost the greedy business millions of dollars of income.

This company decided to continue underpaying its employees as everyone was preparing for the rising inflation

Image credits: The Jopwell Collection (Not the actual photo)

But this strategy turned against the business and it began losing valuable staff members


ADVERTISEMENT

Image credits: Mark Turnauckas (Not the actual photo)

Eventually, an entire department quit



ADVERTISEMENT

Image credits: NonVeganMillennial

Sadly, this story is an example of a broader problem. Economic data from this inflationary period shows that while nominal wages are higher, American workers are not experiencing real wage gains.

A CNBC|Momentive national survey of workers discovered that 66% think their pay isn’t keeping up with higher prices. (19% say increases in their salary have about matched inflation and 13% say their salary has increased more than inflation.)

As more American workers at multiple income levels give voice to the frustrating reality — that price gains continue to outpace wage gains — the squeeze is particularly difficult for those who fall in the middle-income bracket. People making between $50,000 to $150,000 are more likely than high-income and low-income groups to say their salary has not kept up with inflation.

And companies need to understand this if they want to retain their employees. “Inflation is absolutely a driver in worker turnover right now,” said Laura Wronski, senior manager of research science at Momentive.

ADVERTISEMENT

“Workers who say their salary has outpaced inflation are the least likely to say they’ve considered quitting their job in the last three months, and workers who say inflation has outpaced their salary increases are the most likely to be looking for a new job.”

“Low-wage workers are able to job hop, finding new opportunities at higher wage levels. Really high-income workers, those making $150,000 or more per year, are more likely to be in jobs that have been able to boost salaries by the most, so even if they’ve stayed in their role, they’ve seen their salaries grow,” Wronski explained further.

As countries get closer and closer to full employment now that they’re recovering from the devastating turmoil that was the pandemic, the job growth will slow and the job openings will slow. That’s not good for workers. So if you find yourself in a similar position NonVeganMillennial was in and are thinking about a career change, this might be the right time as the period of increased worker bargaining power won’t last forever.

People were glad to hear the greedy bosses got what they deserved



ADVERTISEMENT




In fact, many career experts believe that you should start looking for a new job while you’re still employed.

“I totally agree with this,” Andy Teach, a corporate veteran and author of From Graduation to Corporation: The Practical Guide to Climbing the Corporate Ladder One Rung at a Time, told Forbes. “When you’re working, your professional network is working for you because you’re constantly interacting with your industry contacts. They can inform you about jobs you may not be aware of. If you’re not working, you’re out of sight and out of mind.”

Teach also pointed out that many potential employers prefer candidates who currently have a job because it gives them more confidence that you’ll be a good hire. “If you don’t currently have a job, it raises a lot of questions and puts you in a defensive position, and you won’t be coming at them from a position of strength,” he said.

ADVERTISEMENT

And, of course, there’s the added confidence. When you look for a job while you still have one, there tends to be less pressure on you.

“If you don’t get the new job, you have your current job to fall back on and you can just try again. Having a job gives you confidence because you’re not in a desperate situation. You may need a new job, you may want a new job, but you don’t have to have a new job, unlike someone who is out of work,” Teach added.

So complete your LinkedIn profile, and who knows, you might find a better fit than the current one. Just make sure to conduct the search during non-work hours.





ADVERTISEMENT












Share on Facebook
You May Like
Popular on Bored Panda
Hey pandas, what do you think?
Add photo comments
POST
praecordia avatar
Alma Muminovic
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

I learned a long time ago that the best/fastest way to get a raise is to leave and go to another company. It’s sad but you got to look after yourself and your needs. If you can’t pay rent because you are being under paid then buh bye gotta go, the decision was made for me.

catherine-cross2027 avatar
Step
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

Unfortunately people cannot just up and do that. It's just not true or possible for a lot of people to just up and leave. Seeing how they are barely getting by as it is. People really need to be more mindful of that fact before they say, just go get another job. If you can, that's great! But it is not possible for millions of people who are working hard being taken advantage of and can hardly afford to pay rent, much less go find a higher paying job at a company that won't hire them anyway.

Load More Replies...
bob-g-mccann avatar
SPQRBob
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

If a company is not willing to give its existing employees consistent raises that ensures that experienced employees continue to be paid more than a new entry level employee, they deserve to never be able to retain any quality staff and (hopefully) eventually go out of business.

mpaxton avatar
M Paxton
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

My husband quit his last job because the employees got only one raise in the twelve years he worked there. With the covid they made the employees buy their own hand sanitizer and masks, and cut out their bonuses as if it were their fault business wasn't up to par. He told them he couldn't afford to work there anymore!

Load More Replies...
lisabluford avatar
Lisa Bluford
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

So it's not just America? Other countries are battling capitalistic greed?

abbeyfeale2004 avatar
Sylvia Schmitz
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

Oh, you have that everywhere. But the main difference is that in other countries employees have actual rights and safety nets.

Load More Replies...
Load More Comments
praecordia avatar
Alma Muminovic
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

I learned a long time ago that the best/fastest way to get a raise is to leave and go to another company. It’s sad but you got to look after yourself and your needs. If you can’t pay rent because you are being under paid then buh bye gotta go, the decision was made for me.

catherine-cross2027 avatar
Step
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

Unfortunately people cannot just up and do that. It's just not true or possible for a lot of people to just up and leave. Seeing how they are barely getting by as it is. People really need to be more mindful of that fact before they say, just go get another job. If you can, that's great! But it is not possible for millions of people who are working hard being taken advantage of and can hardly afford to pay rent, much less go find a higher paying job at a company that won't hire them anyway.

Load More Replies...
bob-g-mccann avatar
SPQRBob
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

If a company is not willing to give its existing employees consistent raises that ensures that experienced employees continue to be paid more than a new entry level employee, they deserve to never be able to retain any quality staff and (hopefully) eventually go out of business.

mpaxton avatar
M Paxton
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

My husband quit his last job because the employees got only one raise in the twelve years he worked there. With the covid they made the employees buy their own hand sanitizer and masks, and cut out their bonuses as if it were their fault business wasn't up to par. He told them he couldn't afford to work there anymore!

Load More Replies...
lisabluford avatar
Lisa Bluford
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

So it's not just America? Other countries are battling capitalistic greed?

abbeyfeale2004 avatar
Sylvia Schmitz
Community Member
1 year ago DotsCreated by potrace 1.15, written by Peter Selinger 2001-2017

Oh, you have that everywhere. But the main difference is that in other countries employees have actual rights and safety nets.

Load More Replies...
Load More Comments
Popular on Bored Panda
Trending on Bored Panda
Also on Bored Panda