Blog Archive - October 2015
Daily Kos’s Mark E. Anderson examines increased productivity and stagnant wages between 1948 and 2014. His article includes a very informative graph that shows how these two economic measures were almost aligned. Now productivity doubles wages. Where has the money gone? Anderson argues that work has gone overseas where labor is cheaper and profits have gone to executives and investors. I agree, but would add one other big factor: automation. I was working with a client this weekend who works for a large technology manufacturer. His company will be able to shed hundreds of tech jobs once they move to cloud-based systems. Jobs can come back from China. Once they are automated, they are gone forever. Anderson makes a great point in concluding his article: What are the super rich and executives going to do when no one can afford to buy their products?
Most people look to the Bureau of Labor Statistics and its monthly employment report to understand the job market. While that is probably the best measure, there are other important signs, including how employers are treating employees and job candidates. A few months ago, I noted that almost every job posting now includes a list of benefits offered to new employees. Some are even listing a salary.
Employee retention is equally important. Bloomberg reports that some employers are now encouraging employees to use PTO and vacation time. A few employers are even paying bonus that employees can use during a vacation. Others offer “unlimited vacation.” These are the same companies who laid off so many workers that those who were spared worked extra hours and skipped vacation days. Now, as the job market tightens and employers still do not want to raise wages, vacation is a perk used to keep employees without increasing labor budgets.
If you’re asking for a raise or trying to negotiate salary with a new employer, think about vacation as a bargaining chip. If an employer cannot give you a higher wage, ask for an extra week of vacation or PTO. This is a good time to talk about time off.