Sign up with your email address to be the first to know about new products, VIP offers, blog features & more.

Why the Cost of Living Adjustment is Costing You Your Job

cost of living adjustment

Just because our personal expenses increase doesn’t mean we deserve a raise

Employee Entitlement: The #1 Sin Employees Commit Without Knowing It

Last week, we kicked off the topic of employee entitlement in this post and covered a few common behaviors that quietly put employees on the short list. Today we’re going after the big one—the silent sin that kills careers faster than almost anything else.

Let’s get this out of the way up front:

Expecting a Cost-of-Living Adjustment (COLA) is one of the most entitled things an employee can do.

I’m going to break down why a Cost of Living Adjustment makes zero business sense and—more importantly—why your manager will never explain this to you, even though they complain about it behind closed doors.

Managers avoid this conversation because they’re afraid. Afraid of conflict, afraid of emotion, afraid of being seen as insensitive. They don’t want to say the truth out loud:

Your personal expenses have nothing to do with your compensation.
Your value determines your compensation.

Some people won’t like hearing that. And that’s fine.

You can lead a horse to water, but you can’t stop it from complaining that the water isn’t sparkling, flavored, or at their preferred temperature.

But if you are open to understanding how compensation really works—how managers think, what companies value, and what actually increases your earning power—this post will give you clarity 99% of employees never get.

A Quick Reminder: What Entitlement Looks Like

In the previous post, I explained why the company perceives common behaviors as entitlement—not just that they’re “bad.” A few examples:

  • Complaining when the company asks employees to work in the office vs. remote work

  • Expecting your CEO to take a political stance that aligns with your views

  • Using “mental health days” as last-minute personal days

This week, we’re drilling into the entitlement issue every employee has heard but few understand.

From your manager’s perspective, there are only two kinds of employees when this topic comes up:

  1. Those who complain about it

  2. Those who show initiative and skip the complaining altogether

And let me be clear: the second group is quietly winning.

COLA: The Entitlement Sin No One Talks About

In my opinion, one of the biggest signs of entitlement is expecting a Cost-of-Living Adjustment (COLA).

This sin hits even harder in an economy like last month’s, when the country saw the most layoffs in 20 years.

If your company is going through layoffs, expecting a pay adjustment is tone-deaf. A layoff indicates that the company is concerned about its future financial stability. Maybe profits dropped, or a big customer churned. Maybe significant R&D investment is required to stay competitive.

An expanded skillset can qualify you for a salary adjustment.  A COLA isn’t on the table. 

No CEO Wants a Layoff

Employees often assume CEOs treat layoffs casually. I promise—no CEO wants to do them.  CEO’s take layoffs very seriously. They care about:

  • Company perception

  • Employee morale

  • Their personal reputation

  • Their professional performance in the eyes of the board

You may not love how the layoff was executed or why layoffs happen, but don’t misinterpret the motivation behind them. If you’re still employed in tough economic times, appreciate the stability.

How Employees come across as entitled: COLA

I’ve heard every version of the COLA complaint. A few favorites:

  • “Food, gas, housing… everything costs more. I haven’t had a raise in years.”

  • “My friend at XYZ TechCo got a 7% raise and a bonus.”

  • “We should at least get a COLA raise.”

  • “I only got 3% over two years. Inflation is up 10%.”

On paper, these frustrations seem reasonable. Inside the company?
They signal something very different.

Why COLAs Make No Business Sense

Companies pay based on the market rate, which is driven by supply and demand.

  • Harder-to-fill roles cost more

  • Easier-to-fill roles cost less

You don’t get paid more because grocery prices went up. You get paid more because you have become harder to replace.

If a company hires you at $25/hour to perform a defined set of tasks, you aren’t worth more doing the same tasks a year later.

Rising gas prices do not change the value of your skill set.

How To Increase Your Value at Work

Think of it this way:

You start at McDonald’s on January 1. You learn to grill burgers and toast buns. A year later, if that’s all you can do, you’re not worth more to the company.

But if you learn to:

  • Run the register

  • Close the restaurant

  • Cash out the till

You’re now more valuable than “burger-and-bun guy.” You’re premium gas.

Raises should match increased capability and responsibility—not increased expenses.

The key?
Confirm with your manager which new skills will qualify you for an increase before you start learning them.

Most employees skip the confirmation step. They then act shocked when those new skills don’t translate into a salary. 

COLA Sets Employees Up for Failure

Companies that give automatic COLAs create a false sense of growth. If everyone gets a raise for identical output year after year, two things happen:

  1. Employees become complacent

  2. Employees eventually price themselves out of the market

  3. The company isn’t getting any better; the competition is leaving them behind

This is how careers stall, and companies stagnate. If all employees do the exact same job year after year, the company won’t grow. 

If you buy a brand new car in 2014 for $35K, would you pay $50K for a 2025 model if there are no improvements? The company is the consumer, and the car’s features are your skill set.

Why Managers Don’t Tell You Any of This

Managers regularly complain to HR about employees requesting raises or expecting a cost-of-living adjustment. I don’t fault anyone for wanting to earn more. But it is not a good look when the requests ignore fundamental realities.

Managers assume employees should already understand:

  • When the company isn’t performing well

  • The budget can’t absorb higher costs for static performance or skill sets

  • Historically, the budget for raises is ~4%, not 15%

  • Budgets were approved months ago

And here’s the real issue:

Most managers aren’t trained to have this conversation.

Managers:

  • Don’t know how to explain the burger and bun/2014 2024 new car math

  • Don’t want to confront an employee who is already unhappy with their pay. (It’s just human nature)

  • Want to avoid having a no-win conversation. Statistically, most employees aren’t happy with their pay, and salary adjustments are usually “not enough.” 

Meanwhile, employees were never taught how compensation actually works. They show up, work hard, and assume that’s enough.

If You Want More, the Responsibility Is Yours

Your career is your responsibility—not your manager’s.

If you want a raise, promotion, new title, or increased responsibility, you must:

  1. Sit down with your manager

  2. Ask what skills, achievements, and deliverables will qualify you for the next level

  3. Get timelines, expectations, and measurements

  4. Build a plan, agree with your manager on the plan, and execute on it

Employees who do this consistently get more.
Employees who don’t… complain about COLA.

Who Wins?

Those who:

  • Don’t expect automatic raises

  • Increase their skill set meaningfully

  • Align with their manager on what “more” looks like

  • Show initiative instead of frustration

These are the employees managers will fight to retain.

Those who:

  • Expect raises next month

  • Haven’t grown their skill set

  • Want their manager to map out their career for them

…are unintentionally committing the #1 sin of employee entitlement. 

See you at the after party,

HRNasty

nasty: an unreal maneuver of incredible technique, something that is ridiculously good, tricky, and manipulative but with a result that can’t help but be admired, a phrase used to describe someone good at something. “He has a nasty forkball”.

Ongoing writing and context live on LinkedIn and Bluesky.

Subscribe to the free weekly updates here. I promise, no spam.

 

I posted this advice for recent graduates a few years ago:  Career Advice to Make Yourself Invaluable

No Comments Yet.

Leave a Reply