In many cases, it would cost your boss more to replace you than pay you a raise

[james.hendrickson]

An important part of doing personal finance is maximizing the amount you earn from your salary.

Don't forget:

The cost of recruiting, training/onboarding, etc frequently exceeds the cost of paying an already established employee more. Just remember this if you are talking yourself out of asking for a raise.

Also, the economy is in good shape, so its a good time to ask for a raise.

[snafu]

Meanwhile... I wonder who's falling for these $ 1K bonuses. Thus far they are a one shot wonder and if recipients worked out the value per hour it would be mathematically invisible. Today it was Google's $ 4K which sounds important for a nanosecond.

There have been so many pivots and distractions, no one has breath left to ask about how the .01% have increased their net worth.

[msomnipotent]

Only people that have worked at Walmart for 20 years or more get the $1,000 bonus. My sister has worked there for 11 years and is getting $400. You would think she would get $500, but no. It is still a substantial sum to her. It is probably close to a week of take home pay for her.

[disneysteve]

I wonder who's falling for these $ 1K bonuses. Thus far they are a one shot wonder and if recipients worked out the value per hour it would be mathematically invisible. Today it was Google's $ 4K which sounds important for a nanosecond.

I'm not sure what you mean by "falling for" the bonuses. I'm sure the people that are getting them are thrilled. Remember, most Americans live paycheck to paycheck. $1,000 to them is like hitting the lottery. Sure, they'd rather get a raise than a one-time check but I doubt they're complaining about the extra money.

[Jluke]

Meanwhile... I wonder who's falling for these $ 1K bonuses.

Do you mean b/c the business gets a benefit for paying out these bonuses so it's really a move on their part disguised to be "generous" but where they aren't really showing appreciation and are only doing it so they get the tax incentive?

[snafu]

Thank you disneysteve for making my point so well. A one time bonus less tax is not equal to a percentage pay increase for those who have not had an increase in hourly rate for a long time. msomnipotent adds, the bonus is a 'step down' based on 20 years service.

It made a good 'sound bite' but it doesn't change the fact that they do not earn enough to make ends meet.

The benefits for the top group gets repeated.

[disneysteve]

Thank you disneysteve for making my point so well. A one time bonus less tax is not equal to a percentage pay increase

Of course it's not the same, but that doesn't negate the benefit to those getting those bonuses.

I totally agree that the income structure is way out of whack with execs earning far too much relative to the typical worker, but I find it hard to fault any company that passed some of their tax windfall down to the employees, even if it's only in the form of a one-time bonus. They had no obligation to do even that. They could have just pocketed even more at the upper echelon. Maybe it's more of a publicity stunt, but at least there is a real benefit to those receiving it.

[TexasHusker]

The employment situation can get pretty hazardous for men as they cross the "50" threshold.

- Many 50-somethings have been with the company a long while, and even though their annual raises might have been low single-digit, they are now making significantly above market for their services. As budgets are reviewed, such is noted.

- Unless the 50-something has achieved executive level, the company tends to begin to look down on you - you're old, not as spry as you once were, not as energetic as the young bucks, and aren't as taken with all the the "rah rah" sessions as you were 20 years ago.

Because of these dynamics, the 50-somethings are prime candidates for "early retirement" offers that may be completely inadequate, or they are simply laid off.

And once the lay-off happens, good luck finding anything remotely resembling what you made before.

I have a number of friends in the 50s club. One took an early retirement offer from a Big Pharma company that will pay him about $3,000 a month. He can't live on that so he'll have to find another job to supplement.

Another friend got laid off last April making $70K a year, and he still hasn't found a job. About all he's found are $10-12 per hour gigs. He's got a family of 5 and they are barely getting by.

Another friend is an executive with a local Pharma co. making about $200K, staying up nights worrying if he will be laid off before he makes it to 60 years old.

Scary stuff.

[~bs]

^
That is another hazard of waiting until too late to start saving for retirement. Ageism is a real thing, and your peak earning years may not be so peaky if you can't hold a good job through your 50s and into the early 60s. To add to your list, discrimination because of the belief you may be out of work more due to medical leave.

Companies have been laying off higher earning employees and replacing them with cheaper ones for quite a while now. Their attitude is why continue paying some old timer 80k, when you can replace them at 40k and hopefully get 3/4 of the production? Why should I hire some old geezer that I will need to train, only to have them retire in a few years? Old guys aren't good with technology, going to be tougher to train? etc etc

[LivingAlmostLarge]

ageism is real. Lots of friends laid off around 50 can't seem to find a replacement job.

[scfr]

The employment situation can get pretty hazardous for men as they cross the "50" threshold.

- Many 50-somethings have been with the company a long while, and even though their annual raises might have been low single-digit, they are now making significantly above market for their services. As budgets are reviewed, such is noted.

- Unless the 50-something has achieved executive level, the company tends to begin to look down on you - you're old, not as spry as you once were, not as energetic as the young bucks, and aren't as taken with all the the "rah rah" sessions as you were 20 years ago.

Because of these dynamics, the 50-somethings are prime candidates for "early retirement" offers that may be completely inadequate, or they are simply laid off.

And once the lay-off happens, good luck finding anything remotely resembling what you made before.

I have a number of friends in the 50s club. One took an early retirement offer from a Big Pharma company that will pay him about $3,000 a month. He can't live on that so he'll have to find another job to supplement.

Another friend got laid off last April making $70K a year, and he still hasn't found a job. About all he's found are $10-12 per hour gigs. He's got a family of 5 and they are barely getting by.

Another friend is an executive with a local Pharma co. making about $200K, staying up nights worrying if he will be laid off before he makes it to 60 years old.

Scary stuff.

1. Thank you for outlining this situation so clearly. So many financial plans are based on "average annual raise of xx% until retirement" when the reality is that many will experience wage plateau, wage decline, underemployment, or extended unemployment, or forced early retirement earlier than planned.

2. But please, this situation is not faced only by men! Plenty of women faced, are facing, or will face similar scenarios.

[disneysteve]

I think age discrimination is real, but also the higher on the corporate ladder you are, the harder it is to find a comparable job. There are tons of entry level jobs out there. There are relatively few upper management positions.

[~bs]

I think age discrimination is real, but also the higher on the corporate ladder you are, the harder it is to find a comparable job. There are tons of entry level jobs out there. There are relatively few upper management positions.

I think part of the problem is that if you're let go from a company, you wont find any middle level jobs, and not even any entry level jobs, unless by entry level you mean walmart door greeter. Companies look at older people with good resumes as potential flight/retirement/medical disability risks. They may feel threatened by an applicant with more corporate experience than all the bosses. They'd rather just hire someone young out of school without these perceived negatives. So these 50-somethings are getting shunned all around.

[msomnipotent]

The employment situation can get pretty hazardous for men as they cross the "50" threshold.

- Many 50-somethings have been with the company a long while, and even though their annual raises might have been low single-digit, they are now making significantly above market for their services. As budgets are reviewed, such is noted.

- Unless the 50-something has achieved executive level, the company tends to begin to look down on you - you're old, not as spry as you once were, not as energetic as the young bucks, and aren't as taken with all the the "rah rah" sessions as you were 20 years ago.

Because of these dynamics, the 50-somethings are prime candidates for "early retirement" offers that may be completely inadequate, or they are simply laid off.

And once the lay-off happens, good luck finding anything remotely resembling what you made before.

I have a number of friends in the 50s club. One took an early retirement offer from a Big Pharma company that will pay him about $3,000 a month. He can't live on that so he'll have to find another job to supplement.

Another friend got laid off last April making $70K a year, and he still hasn't found a job. About all he's found are $10-12 per hour gigs. He's got a family of 5 and they are barely getting by.

Another friend is an executive with a local Pharma co. making about $200K, staying up nights worrying if he will be laid off before he makes it to 60 years old.

Scary stuff.

My husband is in his 50's and in the tech field. Like you said, if you are not in management by the time you are that old, you are easily replaced for someone cheaper and with presumably more current knowledge. I had to argue with him for over a year to start angling for management or at least take some refresher courses. He is lower management now, and thankfully not the oldest person in the office.

[TexasHusker]

1. Thank you for outlining this situation so clearly. So many financial plans are based on "average annual raise of xx% until retirement" when the reality is that many will experience wage plateau, wage decline, underemployment, or extended unemployment, or forced early retirement earlier than planned.

2. But please, this situation is not faced only by men! Plenty of women faced, are facing, or will face similar scenarios.

Companies are scared to death to fire a female over 40 for cause, much less just lay them off.