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CBus-Eagle t1_iybg3xm wrote

Reply to comment by OneAdvertising9821 in Job offer and counter-offer by peptalks93

I don’t doubt what you’re saying and it may work out sometimes. But I’ve also seen someone accept an offer and his boss (my equal) give him lower than normal raises the next 3 years. The bosses comments during our annual performance calibration and merit increase discussions was that this associate already makes more than others in his pay grade so he taking some of his merit increase and giving it to others on his team to help “level” pay.

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OneAdvertising9821 t1_iyd6fh7 wrote

My F500 company does that as a matter of policy. Your pay within the grade dictates your target merit percentage.

If you're on the high end of the range, your merit target might be 3%. If you're on the low end of the range, your merit target might be 4%.

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CBus-Eagle t1_iyd8dam wrote

Where I work, we get a bucket of money (say 3% of current salaries for your team) and the leader divides it up as they see fit. Yes, our HR system provides guidelines given each associates salary grade and performance score, but each leader has the final decision. I work for a F100 company by the way.

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OneAdvertising9821 t1_iyd913r wrote

Ours is similar, but the size of your "bucket" is in $USD and is the sumproduct of the base salary and target merit increase for each employee.

Where this gets interesting is multi-national teams. My employees in Chicago get paid a heck of a lot more than my employees in India, but it's all one bucket of funds to allocate. This creates an environment where it is much easier for low-COL employees to get large merit increases than for high-COL employees to get large merit increases.

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