HR Insights


How Big Data Slashed Raises for Most Employees

Posted by Wendy White on October 2, 2015

How Big Data Slashed Raises for Most Employees | Wendy White | HR Insights blog by CareATC, Inc.For decades, American wages increased by about 4.1% a year. But in the new millennium, annual raises have fallen to about 2.8%.

Often, increased bonus spending doles out extra cash to individuals, not the workforce at large. And Data Analytics often target employees deemed most likely to leave a company.

The same employees that could be described as "loyal" are also unlikely to leave a company with or without a bonus. And there is a subset of every workforce — usually 5-10% of the whole company, who are good at their jobs, but may be thinking about jumping ship.

Algorithms can analyze things like employee debt and perceived timidity, to determine who will stay and who will go. These methods can also target such employees with increased career opportunities instead of bonuses.

While this thinking may not favor loyalty, it's good for employees who "know their value." In the digital age, the old adage that the squeaky wheel gets the grease may be more true than ever.

Read full article at Huffington Post.

Photo credit: SumAll [CC BY-NC-ND 2.0]
Wendy White

About The Author

Wendy White

As the Director of Client and Clinical Services at CareATC, Wendy manages the implementation and ongoing success of our clients' clinic programs. She is also a resident expert on all things CareATC, having been with the company for over 10 years.

Post Topics Benefits & Compensation