Can someone explain how pay grades and TVC works? If I have a pay grade of 110, how does that impact my bonus or salary? How do we know the ranges?
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Even if you are promoted/joining a new team, your previous year TVC is what will be budgeted for your new manager. Managers know this and consider it when looking at hiring/promoting an internal candidate vs an external candidate. Hiring externally will give them a bigger TVC budget to divide amongst their team.
at least for those who were hired into promotional roles, as I would imagine for new hires, your offer letter should have indicated your possible TVC. if you have been in the same role a while then it will likely be based on last year. there is guidance from HR on how much +- from prior year it should be based on your rating , but we all know that the guidance doesn't equal reality and LOBs and groups will do what they want.
If it’s based off your last bonus which I know is what leadership says. How does changing into a new role/getting a promotion/raise last Feb factor in for this year?
Rule number one….I’m number one. Rule number two, a person should never plan on getting a bonus, ever. It’s always been discretionary. Lazy f’ers got used to getting it yearly and that party is likely over.
Your bonus is based off of your last bonus. So if last year you received $10k, i wouldn't expect your next bonus to be much lower or higher than $10k, unless you did really well or really bad.
that number seems to point to the hypothetical mid point 110 = 110k i.e. target… it’s 100% discretionary now but is often still used as an “invisible” target to work from
Smoke and mirrors. No transparency.
The point is that you don't know the ranges for the bonus. They don't exist anymore
So then what is the point of the TVC opportunity in the compensation tool? If my TVC opportunity is 10,000, is that the maximum I could get or is that $ amount based off of where I am positioned compared to my peers?
There are no ranges it’s 100 discretionary now