Retail Company Makes $5 Billion In Profit, Can Only Afford 18-Cent Raise For Employee

As a boss and as a leader, you want to make your staff feel genuinely valued for their time and efforts. If someone from management is brazen about how much they and the company are raking in, but at least part of that wealth doesn’t trickle down, it’s bound to lead to friction and tons of frustration.

Redditor u/Zach2741 went viral after venting about their minuscule raise. Meanwhile, the company they work for made $5 billion in profit. This feels deeply unfair. And it would make practically anyone want to switch jobs. Read on for the full story and to see how the r/antiwork community reacted to the situation.

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If employees don’t feel like their time and efforts are valued, they’re bound to look for better pay elsewhere

Image credits: Umut Sarıalan (not the actual photo)

A retail worker vented their frustrations after they got a tiny raise even though the company raked in billions in profit

Image credits: AndLikeThings (not the actual photo)

Image credits: u/Zach2741

Wage growth has finally outpaced inflation again in the US in 2023

Image credits: EVG Kowalievska (not the actual photo)

According to the OP, they got the raise after a recent performance review. Their manager thought that their efforts met expectations. The reward? A raise of 18 cents per hour. Meanwhile, one of their colleagues at the retail store got a 28-cent raise because they ‘exceeded expectations.’

Frustrated by the unfairness of it all, the redditor couldn’t help but vent to the r/antiwork online community. They also opened up about how they’ve been job-hunting for four months now. Unfortunately, the search for a position somewhere in IT hasn’t been going as well as they’d hoped.

They said that they’ve applied to “hundreds or so jobs” so far. However, only five places have responded to them. Meanwhile, they’re staying at the retail job because it pays the bills. Until they find something better. Hopefully, that’ll happen soon. Staying at a job where you’re undervalued and feel no purpose can be demotivating and utterly draining.

Finally, after a long while, wage growth is again outpacing inflation in the United States. Statista notes that the rate of inflation started being greater than wage growth in April 2021 (4.2 percent inflation vs. 3.2 percent wage growth). Wages began outpacing inflation again only in February 2023.

What this means, essentially, is that the situation is slowly getting better for workers in the US. However, it might still take some time until more businesses react to the changes in the economy. And, of course, a lot depends on each company’s philosophy on wages.

There are lots of well-paid alternatives, but it takes a lot of effort to apply

Image credits: Tima Miroshnichenko (not the actual photo)

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While some leaders are happy to share the wealth if they’ve been making more profit than usual, others like to play things more conservatively and limit raises to symbolic growth (read: for show). Offering good pay and benefits can be a fantastic way to retain talented employees and draw in new, highly-motivated, and skilled workers.

One recent story that has caught many Americans’ attention is that UPS drivers will earn an average of $170,000 per year in pay and benefits at the end of a five-year contract. That’s up from $145,000 before. This comes after a deal between UPS and the Teamsters Union following negotiations that lasted weeks.

Not only that but UPS employees will no longer have mandatory overtime. And part-time workers’ salaries are growing to at least $25.75 per hour, according to CBS News.

It’s important to be aware of one’s market value and achievements before asking for a raise

Image credits: Nataliya Vaitkevich (not the actual photo)

Before asking for a raise, it’s best to lay the groundwork first. To put it bluntly, you want to show just how much progress you’ve been making recently and how awesome your achievements are. So you want to document at least some of that.

You might think that management is aware of all of your efforts, but it’s impossible to keep track of so much information among so many workers. So you have to be responsible for tooting your own horn—in a professional way, of course.

Meanwhile, check out what the competition has been paying their staff. Ideally, you want to research your market value. If you’re underpaid, you need to make it clear that the market rates are very different. Then, set up a meeting with your manager.

No matter what happens, stay calm and collected. The odds are that you won’t be offered the raise you envisioned, so don’t be surprised if you have to do some negotiating, Indeed warns.

You want your wage to be as high as possible. Management wants to keep additional costs down. You’ll likely meet somewhere in the middle. Hopefully, during those negotiations, you’ll be able to figure out how your wage and benefits will change over the coming few years. You need to be realistic but also honest with yourself if everything meets your expectations.

And if not… well, it might be time to look for greener pastures elsewhere. If you don’t have savings to fall back on, stay at your day job while you’re sending out resumes and going on job interviews. But if you’re not seeing much success, you may want to consider taking some classes to learn new skills, possibly after work.

The author shared that they’ve been job-hunting for quite a while now

Here’s how the rest of the internet reacted when they learned about the company’s profits and the small raises they give out

The post Retail Company Makes $5 Billion In Profit, Can Only Afford 18-Cent Raise For Employee first appeared on Bored Panda.

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