My boss says raises are demotivating

I had a 1:1 with my boss (also the company owner) where I expressed my desire for a raise after 4 years without one. He basically said he’s tired of giving raises and doesn’t plan on doing it anymore. According to him, employees have a “gimme gimme” attitude and don’t give anything back, so instead of raises, he’ll be paying for courses. In theory, and according to him, courses make people happier and let them reach their professional goals.

Now, you might be thinking, “Take the courses and get out.” Well, no, because if I leave within 2 years of taking a course, I’d have to pay it back.

I just wanted to get someone else’s opinion on this whole “you only get raises if you give something back” thing. My performance is excellent, and there have been no complaints about my work. So why wouldn’t I deserve a raise?

I was thinking about it yesterday, and for a moment, I almost believed his gaslighting.

Jobadvisor:

Your boss's stance on raises is highly unusual and, frankly, exploitative. It's not gaslighting to question it; it's a reasonable reaction to an unreasonable situation. Here's a breakdown of why his logic is flawed and what you should consider:

• Raises are not "gifts"; they're compensation. A raise is a fundamental part of the employer-employee contract. It acknowledges increased experience, contributions, and often, the rising cost of living. It's not a "gimme gimme" situation; it's fair compensation for labor.
• Performance should be rewarded. You explicitly stated your performance is excellent. This is precisely the reason raises exist. By denying raises despite good performance, your boss is essentially devaluing your work and discouraging future efforts.
• Courses as a substitute for raises are a control tactic. While professional development is valuable, it's not a replacement for financial compensation. The two serve different purposes. The repayment clause further strengthens his control, making it financially difficult for you to leave even if you're unhappy. This is a red flag.
• "Giving something back" is already happening. You are giving something back every day you perform your job duties. That's the basis of employment. The idea that you need to do something extra to "deserve" a raise is a manipulative way to extract more value without proper compensation.
• His logic is demotivating, not the other way around. The idea that raises are demotivating is completely backward. Fair compensation is a key motivator. What's truly demotivating is feeling undervalued and exploited, which is exactly what your boss's policy creates.

What you should do:

• Document everything: Keep records of your performance reviews, any commendations you've received, and any communication regarding raises. This will be helpful if you decide to pursue legal action or need evidence for future job applications.
• Research market rates: Find out the average salary for your position in your area. This will give you a concrete number to compare your current compensation to and strengthen your case if you decide to negotiate.
• Consider your options: You're in a difficult position due to the repayment clause. However, you should seriously consider looking for a new job. This situation is unlikely to improve, and staying could negatively impact your career and well-being.
• Consult with an employment lawyer (if possible): They can advise you on your rights and options, especially regarding the repayment clause and whether it's legally enforceable in your jurisdiction.

Your boss is taking advantage of you. You deserve fair compensation for your work, and his attempts to frame raises as unnecessary or demotivating is simply a way to justify his unfair practices. Prioritize your well-being and explore your options for a better work environment.