COVID had many enlightening observations about the economy, one of which is that there was a lot of inelasticity in consumer demand versus compensation. Companies have realized that there is a lot more value to extract from employees.
This makes no sense to me.
All that nonsense about pools and targets and budgets is just a polite way of the buyer saying “we are betting you will not quit for x number”.
As a labor seller, you should always just think of employers as buyers, and negotiate the way you would in any transaction. If you think you can get more, then shop around for a different buyer. Or a different line of business if your buyers are not earning much profit themselves.
In order to sell at a high price, someone else must be buying...
This market maker analogy really isn't a win.
And it is not a market maker analogy, it has nothing to do with market making.
The point is, the buyer dictating price is “normal” because sellers often are not in a position to turn down the offer, whether it be due to them not having an option or not being willing to take a risk.
This is IBM's classic modus operandi. I worked there from 2001 - 2013 and survived 17 rounds of deep layoffs during that time. IBM constantly manipulates their financial results on the backs of their employees.
The truth is that companies could afford a lot more less ROI positive resource investments, and yes that even extended to hiring. Now that companies are in a situation far rougher than anything we've seen in the past 15 years (end of zero interest rate policy and cheap funding), companies are scrambling to cut costs and maximize ROI on their existing costs, so that they don't die. They have to, now.