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Do athletic trainers actually understand the different areas of salary increases? What types of increases are we actually fighting for and are we missing the boat of holding our employers accountable for required compensation raises?
What are different angles to research and negotiate your pay expectations while ensuring proper compensation?
MERIT INCREASE
A merit increase is a financial incentive you give your employees based on performance. It’s designed to recognize their hard work and motivate them. It can help workers feel valued for their high outputs. They also clarify your business objectives as they show employees how their contributions may directly impact their compensation. Merit increases may encourage productivity, increase job satisfaction and improve retention.
PAY RAISE
A merit increase is a pay boost based on exceptional work. However, a pay raise, which is typically an increase in base salary, isn’t always related to an employee’s performance. A worker may receive a pay raise that has nothing to do with the quality of their work.
You may choose to give a pay raise based on years of service or to ensure that salaries are fair for the market so you can stay competitive.
COST-OF-LIVING ADJUSTMENT
Merit increase is NOT the same as a cost-of-living adjustment. A cost-of-living adjustment is designed to ensure employees’ pay keeps up with the rate of inflation, based on the Consumer Price Index.
Cost of living refers to the average expenses needed to maintain a certain standard of living. It varies by location and includes housing, food, transportation, and other necessities.
FAIR LABOR STANDARDS ACT
Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping. Depending on your location of work there may be an increase annually due to the state's FLSA requirements (ex: California).
The minimum wage is an amount set by law, whereas the living wage is determined by average costs to live. The amount set by lawmakers for the minimum wage must take into account the needs of businesses as well as workers. They must also consider the overall impact on the economy.
The minimum wage was originally set to allow workers enough income to stay out of poverty. The minimum wage concept has failed because it hasn't kept pace with the rising cost of living, causing many working people to live below the poverty level. The minimum wage is simply not enough to provide one with the means to live. It also is not enough to cover medical, auto, or renters and homeowner's insurance.
Shelby 7/2024
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