This year, merit-based salary increases are being capped at just 3% - and that’s reserved for top performers. For most employees, raises will fall between 0% and 2%.
With inflation, rising living costs, and growing expectations around fair compensation, one has to wonder:
How many employees will start exploring other job opportunities in response?
@OP 2.5% here
Got off the call with my manager, after receiving 4% pay rise which doesn’t even cover inflation.
And that’s after being told I’m performing incredibly well, helping others, making our team better, yadda yadda.
@OP wow, there is no future working for this company. Feel like getting effed over at every step of the way. Whats the point in staying long term? Going to jump ship as soon as I find something good
Last year it was the same thing. As a manager, you get allocated a pool of money that equaled 3% of the salaries of your employees. As a manager if it was up to you, you took away from someone else to give more to the employee who outperformed more. This is the same as it was the last two years.
What's different this year is if you want to promote someone you have to take away from everyone else. Last year, there was a separate pitiful amount that as a manager you were given to promote employees. This year, there was no separate pool so if you wanted to give someone extra for being promoted, you took away from the rest of your employees. So if Bob gets promoted in your department this year and you only get 2.7%, then you know where your other .3% went!
When raises will fall between 0% and 2% why would anyone bother to "overperform" for an extra 1% when it is not even guaranteed. They no longer value employees and see them as widgets that can be replaced on a whim. Cost cutting is going to hit the place hard to try to salvage the stock price. Next phase could lead to outsourcing jobs.
If this is true, this is horrible! Also, I know several people who were promoted over the last year and didn't receive any increases then, either. This is definitely not the same company it was when I started here years ago.
@OP is the cap confirmed to be global? If true, that’s terrible
I've fallen off of understanding what exactly guarantees top performance for merit-based scaling.
They tell everyone that they want them all to do "more" and always overperform. When it is not always necessary.
And what about the ones who may not always, step out of their zone, but ALWAYS provide solid work. It feels like it's more about being seen than actually doing a good job.