Home › Forums › Financial Markets/Economics › 2012 Edition: What’s your raise this year?
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February 18, 2012 at 6:32 PM #738304February 18, 2012 at 10:21 PM #738306CA renterParticipant
[quote=sdrealtor][quote=CA renter][quote=ocrenter][quote=CA renter][quote=ocrenter][quote=sdrealtor]But if you perform below average you should fall behind. Its the private sectors way of showing you where the door is without getting sued.[/quote]
ultimately that’s the downfall of the public sector. the pay increases are all set in stone, regardless of performance.[/quote]
I’m pretty familiar with a number of public employers and their compensation numbers. Of the ones I’m familiar with, almost all have had their compensation frozen or seen net decreases in total compensation since about 2008. No net raises in the vast majority of cases. Their compensation has gone down in real terms, and in many cases, in nominal terms.[/quote]
But that’s looking at a short term deviation from the norm secondary to budgetary crisis at all levels of government. Overall, the government employees are significantly overpaid.
http://www.bls.gov/news.release/pdf/ecec.pdf%5B/quote%5D
Where does it say that?
From your link, on page 4:
“Comparing private and public sector data
Compensation cost levels in state and local government should not be directly compared with levels in
private industry. Differences between these sectors stem from factors such as variation in work
activities and occupational structures. Manufacturing and sales, for example, make up a large part of
private industry work activities but are rare in state and local government. Professional and
administrative support occupations (including teachers) account for two-thirds of the state and local
government workforce, compared with one-half of private industry.”
——————Here are some articles and studies regarding compensation in the public vs. private sectors:
http://abcnews.go.com/blogs/politics/2011/02/working-in-america-public-vs-private-sector/
And this more “mixed” analysis from the Reason Foundation — hardly a “liberal” or “pro-union” organization:
http://reason.org/news/show/public-sector-private-sector-salary
And from Mother Jones (to get all sides in here), another “mixed” bag:
Chart of the Day: Federal Government Pay vs. Private Sector Pay
——————
One comment I have to make about the higher pay for the jobs with fewer degree requirements — many of which are public safety jobs — there are no similar jobs in the private sector with which to compare them.
Not only that, but they mention the much lower turnover rate in many public sectors jobs; this is very important to public employers. The (necessarily) bureaucratic hiring process and extensive initial, and ongoing, training required for these employees is VERY expensive. They cannot afford to have high turnover rates. IMHO, even if they were to go to defined contribution plans (as many suggest), I don’t think they’d end up saving very much (anything?) in the long run. One of the main reasons people are attracted to these jobs is the benefits packages. Take that away, and the turnover rates — and related costs — would be much, much higher.[/quote]
If there are no comparable jobs in the private sector then why do we have to pay them so much? Why would they leave? Where would they go? There are no comparable jobs in the private sector. You just murdered your case. The defense rests.[/quote]
“No comparable jobs,” means no jobs that have the same skill requirements and responsibility/liability levels in the private sector. It doesn’t mean they can’t make more in the private sector (many have made more prior to working in the public sector), but most public employees choose public service because of the benefits/security, not because of the pay. They make less during the “good times” and more during the “bad times,” and this is a calculated decision on their part. It’s also why public sector employees are pissed about being scapegoated for Wall Street’s fVck-ups and having the major PR war being waged against them right when the sacrifices made during the good times are supposed to work in their favor.
February 19, 2012 at 9:57 AM #738315UCGalParticipantAca[quote=CONCHO][quote=flu]
Um… No. Actually my current employer eliminated vacation time, and it’s just following what the going trend is… The newest vacation “policy” that employers are pushing goes like this.You no longer can acrue vacation. Instead if you need to take time off, you just ask yourmanager for time off for up to 2 weeks. Longer than 2 weeks blocks need SVP approval. Technically, you have unlimited vacation time as you can request as many vacation blocks as possible, BUT it’s always at the discretion of your manager to grant you the time off, subject to whether your work schedule permits.
[/quote]Yeah that sucks and you are probably right about the reason they are doing it. It’s like a stealth pay cut. Time to start taking vacations![/quote]
I agree it sucks. I have a director that would totally be blocking time off requests because he personally never takes vacations.
It would impact the Indian employees a lot… the ones in my office tend to do long trips to India every 2 years, much to the annoyance of management who has to plan for 6 week absences.
It would impact me because I like to take 3 week vacations to help justify the expensive airfare overseas. Plus I’m at the Max of vacation because of long tenure so I’d probably get screwed trying to take it under that system.In today’s compressed schedules there’s never a good time to take vacation.
February 19, 2012 at 10:28 AM #738317kev374ParticipantThe Sr. Enterprise Architects I know in the Java EE space are making around $80/hr, nothing more. Sr. developers make around $60-65/hr but I have seen as low as $50/hr. which equates to around $100k/yr with no benefits, so equivalent “with benefits” pay is around $75k/yr. In Southern California that is a pretty low pay for someone with over a decade of experience.
In my view development work is going overseas and/or performed onsite by L1 resources shipped here by companies like Infosys. This is the trend.
Given the skyrocketing cost of obtaining a college degree it would be foolish for anyone to obtain a Computer Science degree with the hopes of getting a development job for any money that will be worth their time.
If a person with over a decade of experience would get $75k/yr a person just out of college would probably be paid $40k/yr, that is the current reality…and that is IF there are entry level jobs in the first place.
February 19, 2012 at 12:13 PM #738323sdrealtorParticipant[quote=CA renter][quote=sdrealtor][quote=CA renter][quote=ocrenter][quote=CA renter][quote=ocrenter][quote=sdrealtor]But if you perform below average you should fall behind. Its the private sectors way of showing you where the door is without getting sued.[/quote]
ultimately that’s the downfall of the public sector. the pay increases are all set in stone, regardless of performance.[/quote]
I’m pretty familiar with a number of public employers and their compensation numbers. Of the ones I’m familiar with, almost all have had their compensation frozen or seen net decreases in total compensation since about 2008. No net raises in the vast majority of cases. Their compensation has gone down in real terms, and in many cases, in nominal terms.[/quote]
But that’s looking at a short term deviation from the norm secondary to budgetary crisis at all levels of government. Overall, the government employees are significantly overpaid.
http://www.bls.gov/news.release/pdf/ecec.pdf%5B/quote%5D
Where does it say that?
From your link, on page 4:
“Comparing private and public sector data
Compensation cost levels in state and local government should not be directly compared with levels in
private industry. Differences between these sectors stem from factors such as variation in work
activities and occupational structures. Manufacturing and sales, for example, make up a large part of
private industry work activities but are rare in state and local government. Professional and
administrative support occupations (including teachers) account for two-thirds of the state and local
government workforce, compared with one-half of private industry.”
——————Here are some articles and studies regarding compensation in the public vs. private sectors:
http://abcnews.go.com/blogs/politics/2011/02/working-in-america-public-vs-private-sector/
And this more “mixed” analysis from the Reason Foundation — hardly a “liberal” or “pro-union” organization:
http://reason.org/news/show/public-sector-private-sector-salary
And from Mother Jones (to get all sides in here), another “mixed” bag:
Chart of the Day: Federal Government Pay vs. Private Sector Pay
——————
One comment I have to make about the higher pay for the jobs with fewer degree requirements — many of which are public safety jobs — there are no similar jobs in the private sector with which to compare them.
Not only that, but they mention the much lower turnover rate in many public sectors jobs; this is very important to public employers. The (necessarily) bureaucratic hiring process and extensive initial, and ongoing, training required for these employees is VERY expensive. They cannot afford to have high turnover rates. IMHO, even if they were to go to defined contribution plans (as many suggest), I don’t think they’d end up saving very much (anything?) in the long run. One of the main reasons people are attracted to these jobs is the benefits packages. Take that away, and the turnover rates — and related costs — would be much, much higher.[/quote]
If there are no comparable jobs in the private sector then why do we have to pay them so much? Why would they leave? Where would they go? There are no comparable jobs in the private sector. You just murdered your case. The defense rests.[/quote]
“No comparable jobs,” means no jobs that have the same skill requirements and responsibility/liability levels in the private sector. It doesn’t mean they can’t make more in the private sector (many have made more prior to working in the public sector), but most public employees choose public service because of the benefits/security, not because of the pay. They make less during the “good times” and more during the “bad times,” and this is a calculated decision on their part. It’s also why public sector employees are pissed about being scapegoated for Wall Street’s fVck-ups and having the major PR war being waged against them right when the sacrifices made during the good times are supposed to work in their favor.[/quote]
I call total BS on this. Name 5 jobs that someone without a college education can get that pays over $100K (not commission based) that provides full health benefits, liberal vacation, cost of living raises, full pension with early retirement, stable employment etc. Heck just name 5 that offer that much money and forget the rich benefit package.
February 19, 2012 at 3:46 PM #738325CA renterParticipantElectricians, plumbers, commercial fishing, linemen, foundation specialists, multiple jobs in the entertainment industry…just off the top of my head. Some of those provide benefits, some don’t, but they can all pay that amount and more; none require a college degree.
Oh, forgot a couple more…real estate agents, mortgage brokers (I knew one who was making over $80,000 PER MONTH), house flippers, etc.
[edit: Some mechanics can make this as well.]
February 19, 2012 at 4:46 PM #738326sdrealtorParticipantNone of those jobs do you walk in and get 100k. They require years of training and most of them still don’t make that unless they own the business which is an entirely different thing. Commercial fisherman don’t make the money if they don’t catch the fish so they are commission paid as are realtors and mortgage guys. Sometimes they make it and most times they don’t. I am still waiting for five jobs that someone could leave their 100k public safety job and get a salary or hourly position paying more. Still calling b.s. on this.
February 19, 2012 at 8:18 PM #738331SK in CVParticipant[quote=sdrealtor]None of those jobs do you walk in and get 100k. They require years of training and most of them still don’t make that unless they own the business which is an entirely different thing. Commercial fisherman don’t make the money if they don’t catch the fish so they are commission paid as are realtors and mortgage guys. Sometimes they make it and most times they don’t. I am still waiting for five jobs that someone could leave their 100k public safety job and get a salary or hourly position paying more. Still calling b.s. on this.[/quote]
No one walks into public safety jobs and makes $100K a year either.
February 19, 2012 at 8:27 PM #738332sdrealtorParticipantAgreed but not the point. There aren’t high paying private sector jobs waiting for them. That’s the point
February 19, 2012 at 9:04 PM #738333SK in CVParticipant[quote=sdrealtor]Agreed but not the point. There aren’t high paying private sector jobs waiting for them. That’s the point[/quote]
Fair enough. I wasn’t really following the entire conversation. Thought maybe my comment wasn’t really pertinent. On the other hand, I’m not sure there aren’t some pretty high paying jobs waiting for some safety workers. For experienced cops anyway.
February 19, 2012 at 11:45 PM #738341CA renterParticipant[quote=sdrealtor][quote=CA renter][quote=sdrealtor][quote=CA renter][quote=ocrenter][quote=CA renter][quote=ocrenter][quote=sdrealtor]But if you perform below average you should fall behind. Its the private sectors way of showing you where the door is without getting sued.[/quote]
ultimately that’s the downfall of the public sector. the pay increases are all set in stone, regardless of performance.[/quote]
I’m pretty familiar with a number of public employers and their compensation numbers. Of the ones I’m familiar with, almost all have had their compensation frozen or seen net decreases in total compensation since about 2008. No net raises in the vast majority of cases. Their compensation has gone down in real terms, and in many cases, in nominal terms.[/quote]
But that’s looking at a short term deviation from the norm secondary to budgetary crisis at all levels of government. Overall, the government employees are significantly overpaid.
http://www.bls.gov/news.release/pdf/ecec.pdf%5B/quote%5D
Where does it say that?
From your link, on page 4:
“Comparing private and public sector data
Compensation cost levels in state and local government should not be directly compared with levels in
private industry. Differences between these sectors stem from factors such as variation in work
activities and occupational structures. Manufacturing and sales, for example, make up a large part of
private industry work activities but are rare in state and local government. Professional and
administrative support occupations (including teachers) account for two-thirds of the state and local
government workforce, compared with one-half of private industry.”
——————Here are some articles and studies regarding compensation in the public vs. private sectors:
http://abcnews.go.com/blogs/politics/2011/02/working-in-america-public-vs-private-sector/
And this more “mixed” analysis from the Reason Foundation — hardly a “liberal” or “pro-union” organization:
http://reason.org/news/show/public-sector-private-sector-salary
And from Mother Jones (to get all sides in here), another “mixed” bag:
Chart of the Day: Federal Government Pay vs. Private Sector Pay
——————
One comment I have to make about the higher pay for the jobs with fewer degree requirements — many of which are public safety jobs — there are no similar jobs in the private sector with which to compare them.
Not only that, but they mention the much lower turnover rate in many public sectors jobs; this is very important to public employers. The (necessarily) bureaucratic hiring process and extensive initial, and ongoing, training required for these employees is VERY expensive. They cannot afford to have high turnover rates. IMHO, even if they were to go to defined contribution plans (as many suggest), I don’t think they’d end up saving very much (anything?) in the long run. One of the main reasons people are attracted to these jobs is the benefits packages. Take that away, and the turnover rates — and related costs — would be much, much higher.[/quote]
If there are no comparable jobs in the private sector then why do we have to pay them so much? Why would they leave? Where would they go? There are no comparable jobs in the private sector. You just murdered your case. The defense rests.[/quote]
“No comparable jobs,” means no jobs that have the same skill requirements and responsibility/liability levels in the private sector. It doesn’t mean they can’t make more in the private sector (many have made more prior to working in the public sector), but most public employees choose public service because of the benefits/security, not because of the pay. They make less during the “good times” and more during the “bad times,” and this is a calculated decision on their part. It’s also why public sector employees are pissed about being scapegoated for Wall Street’s fVck-ups and having the major PR war being waged against them right when the sacrifices made during the good times are supposed to work in their favor.[/quote]
I call total BS on this. Name 5 jobs that someone without a college education can get that pays over $100K (not commission based) that provides full health benefits, liberal vacation, cost of living raises, full pension with early retirement, stable employment etc. Heck just name 5 that offer that much money and forget the rich benefit package.[/quote]
Perhaps there’s some miscommunication.
You asked for some examples of jobs that can pay $100K+ in the private sector, without requiring a college degree, and I named a few examples (very quickly and easily) off the top of my head. I can find more if you’d like.
You didn’t say that these jobs had to pay $100K+ on the first day (though some do). But public employees don’t make anywhere near $100K on the first day, either; especially not in positions that don’t require degrees.
One more thing…why are we not including commission-based jobs? Those can be some of the most lucrative jobs and often have the fewest requirements WRT education, skills, and experience.
I know a LOT of people who took pay cuts to move from the private sector to the public sector — some took very large cuts. I personally took a 35%+ cut when I went from private to public employment. My dad also took a large cut, and my husband took a (smaller) cut as well. I know many others who took similar pay cuts, too. All did it because of the benefits/security of public employment; they clearly didn’t do it for the pay.
Conversely, a lot of public employees leave public service because of better opportunities in the private sector. It was especially bad during the RE bubble when many people left to become RE agents, mortgage brokers, and house flippers (not kidding). In many departments, that’s why they had to pay so much overtime — there were a lot of vacant positions in the public sector during the bubble, and police and fire departments everywhere were having a difficult time trying to fill them.
BTW, you DO realize that public safety personnel also have to have years of training and experience (usually a couple of promotions, too) before they can make $100K, right? Even after many years of service, most don’t make anywhere near this unless they work a lot of overtime.
Let me turn your argument around on you now. How many people can leave their current jobs and go into a completely different field and make more on day one? If they can’t do this, does that mean they are overpaid?
February 20, 2012 at 3:04 PM #738355sdrealtorParticipantHere is where you continue to murder your case. Leaving the private sector for the safety and security of the public sector at less pay is one thing. Why would any rational human being making $100K in the public sector with all the safety and security they get leave for a lower paying, less safe, less secure job in the private sector? The answer is they wouldnt and they dont.
The hysteria of the bubble was something we all agree was a once in a lifetime thing. Lots of naive people got in RE related businesses thinking there was easy money. There wasnt and nearly all of those folks are now gone from the business. That craziness is gone not return any time soon so spare us the examples from the bubble era. That climate doesnt exist anymore and probably wont again in our lifetime.
The “jobs” you named arent jobs that pay that much they are businesses someone could start taking on substantial risk and making a big investment that may pay off with a $100K profit down the road. I am still waiting for 5 jobs (as in someone hiring you with a salary) that someone in the public sector without a college degree could get. A job that would pay as well or better than their current gig. A job with benefits, security, a pension and liberal paid vacations. They dont exist.
February 20, 2012 at 3:31 PM #738356CoronitaParticipant[quote=kev374]The Sr. Enterprise Architects I know in the Java EE space are making around $80/hr, nothing more. Sr. developers make around $60-65/hr but I have seen as low as $50/hr. which equates to around $100k/yr with no benefits, so equivalent “with benefits” pay is around $75k/yr. In Southern California that is a pretty low pay for someone with over a decade of experience.
In my view development work is going overseas and/or performed onsite by L1 resources shipped here by companies like Infosys. This is the trend.
Given the skyrocketing cost of obtaining a college degree it would be foolish for anyone to obtain a Computer Science degree with the hopes of getting a development job for any money that will be worth their time.
If a person with over a decade of experience would get $75k/yr a person just out of college would probably be paid $40k/yr, that is the current reality…and that is IF there are entry level jobs in the first place.[/quote]
J2EE is outdated.. Sr. Java Architect != Solutions Architect…. Sr. Java Architect only means someone that has some design work with J2EE… Most IT stuff these days doesn’t require J2EE anymore. Someone that says they have years of J2EE experience is equivalent of someone from the past that use to say they know cobol and do a lot of work on mainframe…Also, it doesn’t require a 4 years computer science degree to be doing anything related to J2EE or a lot of IT work. It is entirely possible to pick it up without any com-science…
Don’t stick with J2EE. It’s like folks holding onto cobol or mainframe. Technology changes, don’t be on the boat clinging to something that is going to be outdated. It’s not about a specific technology you want to hold on to..
February 20, 2012 at 11:12 PM #738365CA renterParticipantsdr,
We’ve rehashed this public vs. private thing multiple times on multiple threads. You keep wanting to change the conditions (can’t be commission-based, can’t work for yourself, etc.). Well, lots of public sector workers have done those jobs and can easily do them again. The point is that the people who migrate from the private sector to the public sector almost always do it for the benefits/security. That’s a fact, and that’s why public employers offer those benefits. They cannot afford to have the high turnover rates in the public sector like they do in the private sector for the reasons stated in my post above. They offer these perks to attract the most qualified candidates and to retain them during the “good times,” which includes any time the economy is doing well, not just during bubbles.
You and I will always disagree about who gets paid too much — you think public sector workers are overpaid, and I think that commission-based middlemen are overpaid — many of whom have very active lobbying groups that buy our politicians and use taxpayer money to pad their profits. They are no different from the public unions, so step off your high-horse. It’s doubtful either one of us is ever going to change our minds about this, so we’ll just have to agree to disagree.
Since this thread is about raises, I offered input regarding the public sector in response to more of the myth-based nonsense that thrives on the internet (public employees always get raises, even during the hard times — totally untrue, and that is a fact). Now, I’m going to stop the thread-jacking and let everyone else respond WRT the original question:
Did you get a raise this year, and if so, how much?
February 20, 2012 at 11:52 PM #738369sdrealtorParticipantI have to laugh because you constantly miss the point. Its not public vs private for me. It is socialism vs capitalism. You beleive in the former and I in the later. The public sector is simply the workplace of choice for socialists. I believe in expanding one’s mind through education be it public school or private school. There are winners and loser in that environment. You beleive in a sheltered and controlled education such as home schooling where there are only winners. Sorry but that contradicts your zero sum game philosophy. We cant all win.
I beleive in the risk taking and innovation that is the core of the American Spirit. These are the things that make this the best country in the world. You beleive that everyone should put their head down and work hard as part of a large machine. That work ethic while admirable can be found anywhere in the world. No where else in the world do you find the innovation, creativity and spirit that exists in our country.
I am not a right winged rah rah USA patriot. If anything I am left of center, live and let live liberal. But I am a beleiver in the American Spirit that recognizes the value of someone willing to put their ass on the line and take the risks that create a better world. That can be through pursuing higher education or pursuing an entrepreneurial enterprise. Just being being another cog in the machine is not what got us here nor is it what will keep us here.
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