I am new to management last year & at the bottom of the totem pole on my target. Absolute bottom. Will this affect how much raise I get or is it dependent on my EOY review?
10 replies (most recent on top)
Raises have been a total joke for the past several years. Never higher than 4% and lately 2% and under despite highest rating at the bottom of the scale. It’s painful to work so hard for a couple of percentage points bump.
Hopefully it’ll improve, someday. Cost of living is also not a factor whatsoever in the raise determinations.
Boss will always tell you that you got one of the highest, budget was so tight, etc.
The best bump has been market recalibration. Totally and completely not merit based whatsoever.
In simplistic terms, Manager gets allocation of X number of dollars, the Manager divies up between his subordinates. Top performers get more than lower rated within group. Dont be stuck in the low performer segment if you can help it.
Your Director has a budget for raises to spread across your organization. You annual ratings will play into the raise. Where you are in the TSR, must be in 50th percentile, and where everyone else in the group is in the TSR and their ratings. Remember years ago, had top performance rating however got sh-t raise, because others on the team were underpaid and they gave them all big numbers.
Ratings have a set percentage per unit/org. You can be great performer and still get a cr-p rating just because there were no more "slots" left for it. Each org is essentially required to have a certain percentage of people not meeting in rating.
Borrowing from @dud+1f4foAzD
Budget, where you are in TSR, then rating, are included in HR calculation to determine raise. Budget is determined before reviews are conducted; so many times reviews are written to justify the raise not the other way around.
Tips for the young kids out there, never accept an job without knowing how your pay is determined.
Rating has role, you will be competing against others on your team. Not everyone will get the highest ratings, noting to do with actual work, it’s called calibration. Your manager will go bat for you, or not.
OP here: So it’s partially 2nd level discretion whether I get a raise or not, correct?
Multiple factors. Managers used to have some leeway, but the compensation system has locked most of that down. If your TSR was bumped up, and you are below the minimum...you will be increased to the minimum. Your EOY performance review determines your raise. People below the TSR midpoint average get a larger percentage increase that those above the midpoint. In other words, it’s harder to reach top pay as your pay increases over time.
No idea. I was top craft and wrote my own paycheck for 41 years.
Good luck.
Rating + where you are in TSR are both included in HR calculation to determine raise