I am old enough to remember a time when annual increases were actually based off “cost of living” costs. A time when if you worked full time, you were able to afford rent Even purchase a home if you saved right. I, myself, had just joined the workforce with a well-know corporation. My first 3 annual raises were always at 8%. They were considered “cost of living increases”, not “performance increases”. Our annual bonuses were based off performance, as they should be.
The following year the company announced annual increases would now be tied to performance. Which allowed them to max out an EE increase at 3%. And that is if you were lucky enough to get 3%. Meanwhile, cost of living is increasing at a faster pace than our increases. This is also unfair to a loyal EEs who had been with the company for years. Because anyone newly hired would potentially be making more money than someone who had been in their position for 5 or more years.
I blame former President Reagan and his trickle down Reaganomics. This is how companies started to save money, then turn around, and begin paying their CEO's those giant paychecks and bonuses we all know of.