Work and Salary Expectations

[citygirl]

There's few ways to motivate your employees if the money they are receiving for their work is less and less all the time. And even if its not your direct fault...you are not going to be able to motivate them if they don't believe their basic needs (money to pay for stuff) are covered. Is that so hard to accept?

Guillo - I think you've made your position quite clear I was responding to Verito who said "if you want to live in Argentina, you have to learn to live with inflation and with the way Argentines stimulate workers, usually not necessarily with money..." I am asking if not money, than what are these other ways that Verito was referring to? I am always interested in learning and hopefully finding new ideas.

Shrug - I think I've made my position clear as well. I have and will continue to do what I can to offer my employees a fair cost of living adjustment. B/C I understand the pain of inflation - again, I've had 1 raise in 3+ years b/c sr management had a salary freeze due to the economic conditions. I would love a raise too But there is a limit to the pool of available monies for my business and I would imagine many other businesses so what is there has gone to employees but at some point, we're simply not going to be able to continue offering 30 or 40% raises. So again, the point of this thread was asking for other ideas and suggestions that employers have utilized besides money.

 

[jb5]

How do Argentines feel about Brazil and Chile, once much weaker economies, getting all of the foreign investment and moving past them? It is very sad to me that this once power of South America and the world is letting this happen. Argentina has it all from the hands down best S American city, an educated population and incredible beauty throughout, but it will continue to have it's unfortunate boom and bust cycles while it's neighbors prosper.

The entitlement approach is very short sighted. I wonder what it will take to turn it around and help Argentines see that being realistic about the necessary teamwork will be a win-win.

 

[Guillo]

There is this entitlement mentality in Buenos Aires now that is discouraging many from investing in businesses here . It is great to pay excellent wages but for performance and results only not just for turning up to work.

I think that's a given, you shouldn't hire someone with bad performance, and if you do, you shouldn't keep them.

You are still ignoring inflation in how it affects salary. You cant act as if it didn't exist, but if you pretend to do business in other places that are not the US, you should know that things WILL be different and you either adapt or die.

 

[Guillo]

Guillo - I think you've made your position quite clear I was responding to Verito who said "if you want to live in Argentina, you have to learn to live with inflation and with the way Argentines stimulate workers, usually not necessarily with money..." I am asking if not money, than what are these other ways that Verito was referring to? I am always interested in learning and hopefully finding new ideas.

Promises of more money maybe?
For some people, professional growth is a carrot to run behind. For some others, a particular project might be it. There is no easy way to do it for everyone.

 

[Guillo]

The entitlement approach is very short sighted.

I'd say the same about the sense of entitlement to cheap labor

I wonder what it will take to turn it around and help Argentines see that being realistic about the necessary teamwork will be a win-win.

Probably profit sharing.

 

[citygirl]

FWIW - Argentina is not nor ever has been known as a hub for exceptionally cheap labor. I don't know of anyone in business who really looked at that as a driving force or the most important factor in having a business here. I certainly looked at and estimated I would spend less than I do in the US but not in any truly substantial amount. Argentina is not India or China.

Most of us didn't come here to take advantage of the Argentines and exploit the cheap labor. A lot of people I know that have started businesses here did so because they love it here, it's home and they wanted to create a life for themselves here and become a contributing member of this country.

 

[jrockstar80]

as an american, and therefore presumably quite comfortable with the idea of capitalism, reading through the posts where people are dumbfounded that workers expect pay raises that keep pace with inflation blows my mind. getting a raise that doesn't keep pace with inflation is actually a pay cut and frankly, a slap in the face. are you people serious about this?

fwiw, in the US working for eight years i received AT LEAST an inflation-based raise (about 3%) every year. the one year i was at a place where we didn't the entire staff almost quit.

 

[jb5]

The interesting thing city girl is that no one in China or India thinks they are being exploited. American and European outsourcing is seen as amazing good fortune. The number of jobs created at relatively good pay in those countries has created a solid middle class that is fueling those countries.

It's a good thing when foreigners come in and create jobs in countries with vast poverty.

Rockstar, I'm sure every employer wishes they could give raises that keep up with inflation and remain in business. No one wants unhappy or suffering employees. Your business will be much better if everyone is happy and well fed.

In the US that's typically not a problem. But in Argentina, many years you're looking at 30% plus. You certainly can't raise your prices by that much in most cases. So when employers realize they can't possibly keep up with inflation in AR, what are their options? Should they shut down and put everyone out of work? Do what citygirl's company is doing and send new projects elsewhere?

No one is dumbfounded that workers want to maintain their quality of life. It's very understandable and something we all share. But in all honesty I'm dumbfounded that it's possible that workers don't understand most employers would not be there next week if they increased wages at the rate of inflation in Argentina.

 

[Guillo]

But in all honesty I'm dumbfounded that it's possible that workers don't understand most employers would not be there next week if they increased wages at the rate of inflation in Argentina.

So, in your opinion, employees should be understanding, and allow their salary to depreciate so companies keep their bottom line?

I'm trying to understand what you really mean.

 

[jb5]

What I really mean is very simple. Companies can not give everyone a 30% raise and still remain in business. With out of control inflation and unhappy employees, companies will close their doors. Employers like me will not expand in Argentina, we will choose one of the many countries without crazy inflation where we can afford the workforce.

Argentina is well known to be a bad place to do business and many companies pass over it and choose more stable countries for a S America base. So Argentina continues to have a huge unemployment problem. When Citygirl says her company will not bring new work to Baires understand there are thousands more companies who've made the same decision. And thousands that have packed up and gone to neighboring countries taking all of their jobs out of Argentina.

So like many, Citygirl sits in her Baires office wondering how she keeps employees happy and motivated while her corporate headquarters tells her there's no way she can give big raises in a global downturn. They tell her she's not getting a raise, those above her are not getting raises and that they're fighting to keep alive in very trying times. If her staff is unmotivated and it shows in their work, there's a good chance that headquarters will simply shut the operation down and Citygirl will be off to run that business in another country.

At the same time, organizations like mine, which see opportunities in AR, are deciding they are too risky. If inflation will make it impossible to keep employees happy, that's a nail in the coffin when added to the already difficult process of doing business there.

This is all a terrible shame and continues to assure that Argentina will not have a stable, growing economy. Its a catch 22 because Argentina desperately needs foreign investment
To produce stable, well paying jobs.