Construction costs are currently skyrocketing

Hmm I wish everyone such a job, but I see it ambivalently. If salary increases are always given without any performance improvement, the company will eventually go bankrupt.

Hello,

What I mean is getting a raise without an increase in performance, taking on new tasks, promotion, or more responsibility. I call that inflation compensation, and that would not happen with us. You have to earn a raise here (no collective agreement, no unions, no works council).

And that was the reason for me to join the corporation and not the Mittelstand. I just had no desire for the second league and their strange owners....

Please do not misunderstand the second league, in my industry Mittelstand would be the second league; I explicitly do not mean that for others!

Best regards,

Andreas

No, really not. A company with motivated employees (through regular salary increases) is currently making more revenue and profit and definitely will not go bankrupt. Just look at VW. They always increase wages significantly (now also over 8%) and on top of that almost every year a nice bonus between 5000-7000 euros. And the company is doing well and the employees are happy about it. There are some who can afford an additional vacation as part of the VW family (but only if both work at VW).

Hmm I wish everyone such a job, but I see it ambivalently. If salary increases are always given without any performance improvement, the company will eventually go bankrupt.

I have yet to meet a company that would voluntarily refrain from raising prices every year ;) Standstill is an effective pay cut. With 10% inflation more than with 2%, but you still have less every year. And the constant training of new employees costs much more money in many areas than keeping the people by paying them properly.

No, really not. A company with motivated employees (through regular salary increases) is currently making more sales and profit and certainly won’t go bankrupt. Look at VW. They always raise wages strongly (now also over 8%) and on top of that almost every year there’s a nice bonus between 5000-7000 euros. And the company is doing well and the employees are happy about it. There are some who can afford an additional vacation as part of the VW family (but only if both work at VW).

Are you sure that’s the causal chain?
I am very sure that it’s the other way around. Of course, it’s also a cycle, but if VW didn’t grow, there certainly wouldn’t be such bonuses. The salary increases at VW probably come from collective bargaining increases as well.
Don’t get me wrong, my employer also gives generous salary increases and bonuses, but they are linked to performance and not to inflation.

Don’t get me wrong, my employer also gives generous raises and bonuses, but those are tied to performance and not to inflation.

Usually it’s a mix with you too, you just might not be aware of it. Or does an apprentice still earn as much today as 50 years ago? Or even the department head? Do they really perform that much better today than back then? It’s just a question of how it’s packaged.