A friend Whatsapp this question to me yesterday, to which I replied, "There are no good companies."
She asked, "How much increment should a company gives to a good staff?"
I replied, "What is your definition of good staff? Is he or she someone who reports to work everyday, has been with the company for many years, or what?"
I went further to quote a staff from her company who reports to work everyday and has been with the company for at least 20 years. But all this lady does everyday is walking around chatting with colleagues and staff from other departments, always asking for help just to move a few magazines and was exempted from performing duties by the boss that are required for her job title.
An exchange of messages ensued.
I was rather surprised at my friend's question knowing that she has worked for 20 over years.
Is this the mindset that most employees have towards their companies? A company is a good company if the increment meets the employee's expectation and a lousy one if it doesn't. Or is it a sense of entitlement that you deserve the increment regardless of your performance?
Can one expect to be entitled to pay raise every year for performing exactly the same kind of duties?
I often wonder how can a business be sustainable if a company increase the pay of staff every year doing the same job, without adding more value to their jobs and to the company.
Look at what most companies are doing. They are either making their existing products or services cheaper for the customers, improving their products with new features that helps solve customers' problems easier or introducing new products or services to solve new problems. Either way, they are adding value.
And if a business owner thinks that he or she can continues to raise price (even though costs are increasing) without adding more values to customers, they will be in for a rude shock.
Some competitors will find a new way to sell the same item or service cheaper than you. A new innovation may make your product or service redundant. Customers may find a substitute product or service that they can live with.
Back to the conversation with my friend.
Instead of asking the question she asked, would it be better to ask "What values did I add to the company for last year to justify a pay increase and what values can I add to the company this year to justify the percentage increase?"
See how the pattern of thinking shifts.
And not to worry about whether your company is good or not. If you've really added value to the company, the company cannot afford to keep you for long with pathetic pay increment. It's either you will be headhunted by the competitors or you will start looking to leave.
So learn to ask the right questions. And right questions includes stupid questions.