Why I Gave a 10% Raise
I just implemented a 10% raise for my employee. I had intended to decide what percent to give and to actually give it after doing my first ‘performance review’, but then I realized…the results of a review didn’t really matter for the baseline raise that needed to be given to be a decent employer.
Why is that? Inflation! The word that has been in the news lately…and so too have been the chatter of people complaining about raises that don’t even match inflation. If inflation is 7% then why are raises only 3% (or less than that)? It doesn’t make any sense. You’ve literally lost money (as your salary is ‘worth’ less) by continuing to work at that job that doesn’t even match the increasing costs of things.
So I knew I was going to at least match inflation with my raise. But a 7% increase doesn’t necessarily equate to that on the paycheck due to taxes and such. It’s a % raise to gross pay, but it is your net salary that actually is used to buy things. Thus I scientifically came up with 10%. By scientifically I mean I considered 3% an arbitrarily reasonable padding to compensate for this and it made the total numbers nice. It all worked out and felt right. Compensating people as best as I can do and keeping up with market forces feels good. It’s crazy, I know.
Anyway…why I gave a 10% raise…it made sense and was the right thing to do. It’s as simple as that.
Hello World (from Jonathan Wang)!
05/28/2021 - Jonathan Wang
My name is Jonathan Wang, I’m a recent bootcamp graduate from Actualize Coding Bootcamp and I’m excited to have joined Niedziela Solutions as a Full Stack Engineer!
First Year in Review
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It has been a little over a year since I officially started the business. Which means it’s time for a retrospective! This is going to be all over the place, which is where I’m at mentally right now. It’s not...