Work and Salary Expectations

[Guillo]

Guillo - thank you as well for that perspective. Let me ask you, as an employee, what else would you look for besides an increase in salary?

It depends a lot on the worker. Myself, I value learning and applying new technologies, so that would probably make me happy. Taking courses can also help. Having a "bonus" related to productivity might also help, so I know that if I do my job properly and make it work for the company I'll have a cash reward from the earnings related to it.
I also enjoy a lot working on procedures and standards, so that might stimulate me for a while.
But, if I dont make a decent paycheck....everything else pales by comparison.

It doesn't matter whether you guys are right with the business side of it....for the employee it feels like they are having their pay lowered every month, its going to be hard to keep them interested and with a high morale.

 

[mendozanow]

My motto for living in Argentina: "Assume nothing, expect even less."

 

[citygirl]

I dont like the adversarial relationship between employer and employee, but the deal is.... its not the employee deal that it makes business sense for you. I wont sacrifice my salary level so you can have better operating balance to report to your home company. I work for my company to get a paycheck, and maximizing that is what will most likely keep me interested.
Of course there are other things that keep me in my job. Relaxed workplace is nice. Nice projects are interesting. Growth potential is also interesting. But all of that is only second to having a good paycheck and an updated salary.

Guillo - but there has to be a balance and both sides have to understand and make concessions. Because if not, and the employees simply expect to keep receiving these type of raises, at some point, it no longer makes economic sense for the business to stay open. And then you're left with no job and no salary at all. So int he end, it is the employee's problem as well.

And of course companies came here because it was less expensive than doing it elsewhere. That's business 101. We certainly didn't come here for the supportive business climate and ease of doing business

I have worked for my company for the last 3 years. In 3 years, I have gotten 1 raise. And yes, I live here and yes, inflation affects me. But that's just the way it works as senior management in many companies. When the business is hurting, you don't get raises. I HAVE given raises to my employees here.

And while I certainly understand if they leave, it's not as though the field is necessarily going to be greener and they will have higher salaries at another place. I'm guessing that every business is feeling the pain right now.

I don't know what the answer is right now. We're finished with our review cycle for this year so really, it will all depend on what happens over the next year. If nothing changes and there is still this kind of inflation and expectation - well, then I don't know what we'll do.

 

[jaredwb]

I dont like the adversarial relationship between employer and employee, but the deal is.... its not the employee deal that it makes business sense for you. I wont sacrifice my salary level so you can have better operating balance to report to your home company. I work for my company to get a paycheck, and maximizing that is what will most likely keep me interested.
Of course there are other things that keep me in my job. Relaxed workplace is nice. Nice projects are interesting. Growth potential is also interesting. But all of that is only second to having a good paycheck and an updated salary.

Hi Guillo, appreciate you comments but you have a flawed mentality. If you work just to work and get a paycheck, then that is all you are going to get. No raise, not bonus, nothing...just your paycheck for the work you are doing.

As an employer, I appreciate the "workers", but they give me no incentive to increase their salaries. I want people that give more and contribute to the growth and/or expansion of the company. Write a white-paper on something you have worked on...anything to show me (as an employer) that you are not here ONLY for the paycheck. If the paycheck is all that keeps you interested, that is all you will get...but no increases because you haven't earned it.

And you aren't "sacrificing" anything. Sacrificing would be taking a pay cut. Still, you are missing the point. If the companies overhead costs go up 25%, we can't pay more. At that rate of increase, you should just be happy that you are able to keep your job.

 

[Guillo]

Guillo - but there has to be a balance and both sides have to understand and make concessions. Because if not, and the employees simply expect to keep receiving these type of raises, at some point, it no longer makes economic sense for the business to stay open. And then you're left with no job and no salary at all. So int he end, it is the employee's problem as well.

Perhaps, the problem was not having enough foresight about the everchanging conditions in Argentina. Cheap, highly professional labor is not guaranteed

I have worked for my company for the last 3 years. In 3 years, I have gotten 1 raise. And yes, I live here and yes, inflation affects me. But that's just the way it works as senior management in many companies. When the business is hurting, you don't get raises. I HAVE given raises to my employees here.

Well, if you are senior management you probably have a wider margin to withstand inflation. That's certainly not the case for someone that is on a salary of 5-10k pesos a month and, after a couple of years see 50% of their salary banish because of inflation.

And while I certainly understand if they leave, it's not as though the field is necessarily going to be greener and they will have higher salaries at another place. I'm guessing that every business is feeling the pain right now.

I agree with this, pastures are not going to be necesarily greener. Well, it actually depends on which business you are in. But, even then, you cant expect people to be happy for getting just inflation raises.
25% is a big number for you guys expats...but its hardly enough for a worker here.

I don't know what the answer is right now. We're finished with our review cycle for this year so really, it will all depend on what happens over the next year. If nothing changes and there is still this kind of inflation and expectation - well, then I don't know what we'll do.

Yeah, you are in a tough position. International business are complicated, and I dont have any solution for you. I'm trying to give you the "other side of the fence" thinking so you can understand their motives too.

 

[Guillo]

Hi Guillo, appreciate you comments but you have a flawed mentality. If you work just to work and get a paycheck, then that is all you are going to get. No raise, not bonus, nothing...just your paycheck for the work you are doing.

I think you misunderstood my point

I dont work "just for the paycheck". But the main reason for people working for you is not to make you happy and to make you a rich business owner. They are doing it for their own reasons (have cash to live, grow professionally, etc) not YOUR reasons (have the biggest profit you can get, or whatever your organization goal is). The deal is finding the best common ground to both of us. If as a side effect of my work you also get rich, everyone's happy (specially you !). But making you rich will not, in itself, stimulate me unless you share the happyness.


And whether you like it or not, one of the main reasons people work for is to get money, to get stuff like you know, food and luxuries to enjoy life like good malbec . Mess with the equation effort versus buying power of the salary and people with get unhappy.

And I know its not the business owner creating the inflation. But as you are in control of a factor in that equation you'll receive most of the pressure.

As an employer, I appreciate the "workers", but they give me no incentive to increase their salaries. I want people that give more and contribute to the growth and/or expansion of the company. Write a white-paper on something you have worked on...anything to show me (as an employer) that you are not here ONLY for the paycheck. If the paycheck is all that keeps you interested, that is all you will get...but no increases because you haven't earned it.

I'm sorry to tell you that it works both ways. Don't expect to people make an effort to contribute to the growth or expansion of the business just because they are your employees and you have a nice smile. Its not like you are the god of money raining on the employees and making them a big favor of employing them. You also employ them because its cheaper that doing it in the US and it makes business sense for you.

And you aren't "sacrificing" anything. Sacrificing would be taking a pay cut.

What I've been trying to explain is that it isn't like that when working with inflation like we have here.

You need to adjust to a different situation to what you might be used to.

Perhaps you need to think in the longer term. This year, you might have an excellent pro for 1/5 of what you would pay in the US. Next year, things can easily change and you might be paying the same as in the US (Even though that never happened to me so far).

Still, you are missing the point. If the companies overhead costs go up 25%, we can't pay more. At that rate of increase, you should just be happy that you are able to keep your job.

And if you give raises under inflation, you should thank if you keep the worse employees of the bunch. The best will move on to someone that pays better, unless they have something else that keeps them there, which was the point of the whole thread, finding other things that stimulate people to make them happy.

 

[JHB1216]

So again - I'd love to hear some ideas on how people keep their employees motivated. B/C annual raises of 25% just aren't in the cards, let alone more for high performers.

Really don't have any good advice because it seems that you are in an impossible situation. Your best employees will leave for the higher salary as they just try to keep up with the cost of living. And you will be left with the employees that no one else wants.

 

[starlucia]

Really don't have any good advice because it seems that you are in an impossible situation. Your best employees will leave for the higher salary as they just try to keep up with the cost of living. And you will be left with the employees that no one else wants.

Maybe in theory, but how many other companies are in the same situation? I bet that for every salary able to keep up with inflation, there are dozens of qualified candidates gunning for that job. In the end, I think it's more likely that the staff bitches, and maybe loses some morale, but most of them stay put.

 

[jb5]

It's shocking that workers don't get that precious few employers can give inflation based raises and stay in business. If they don't get this salaries will not going down as businesses close and unemployment grows.

Even the US unions have gotten that they must share the pain.

 

[jp]

It's very interesting for me that there is an implied expectation that employees will receive 25% + salary increases simply for showing up and doing their jobs.

People expect their salaries to at least track inflation. Receiving a 25% raise isn't cause for celebration when inflation is estimated to be around 30%, its a bitter acknowledgement that you are at best, being paid as much as you were last year.