So what was your increase like?

[Garson007]

My job...really well. To be honest, I believe the company (+5000 employees) has a policy of inflation-linked increases with decent annual bonuses to key people as their staff retention plan. We used to get increases around 12-15% a few years back...a discretionary bonus scheme is a lot less costly over time for an employer than increases that are twice inflation.

Pretty much this with the company I am at. Only, it's a terrible strategy - especially when you look at juniors in an increasingly evolving and important industry. Juniors used to get two increases a year, now it's only inflation. The jump from junior title to just title will be too big for the company to give the actual increase the employee deserves - which means a lot of employees leaving.

 

[cguy]

Pretty much this with the company I am at. Only, it's a terrible strategy - especially when you look at juniors in an increasingly evolving and important industry. Juniors used to get two increases a year, now it's only inflation. The jump from junior title to just title will be too big for the company to give the actual increase the employee deserves - which means a lot of employees leaving.

I work with a similar structure. At present a vast majority of my yearly income is discretionary bonus. I prefer it because it better supports a meritocracy (and because I'm on the right side of the rankings).

 

[geezer]

I was told that my current salary is above average. DuH! I worked hard, and got above average merit ratings and the associated larger percentage increases. Because of me now suddenly being above the average, I was told that I will have a salary freeze until I am within the band. That may take up to 4 years! How screwed up is that? And I work for a company that made about R30 billion last financial year. Nice message to your workers, work hard and you are screwed on the long term.

 

[cguy]

I was told that my current salary is above average. DuH! I worked hard, and got above average merit ratings and the associated larger percentage increases. Because of me now suddenly being above the average, I was told that I will have a salary freeze until I am within the band. That may take up to 4 years! How screwed up is that? And I work for a company that made about R30 billion last financial year. Nice message to your workers, work hard and you are screwed on the long term.

Similar story: I once worked for a company that spontaeiusly decided to give raises to everyone who was below the middle of their salary band in order to increase retention. They gave all the money to underperformers, resulting in no increases for the top performers. Most of the top performers are now gone due to decisions like this.

 

[geezer]

Most of the top performers are now gone due to decisions like this.

I unfortunately am too old and too white to go and seek alternative employment. I will just have to grind my teeth and bear with it, but I can assure you, I will just be cruising along!

 

[Neoprod]

Only, it's a terrible strategy - especially when you look at juniors in an increasingly evolving and important industry. Juniors used to get two increases a year, now it's only inflation. The jump from junior title to just title will be too big for the company to give the actual increase the employee deserves - which means a lot of employees leaving.

Not sure I understand...your company treats a promotion as an annual increase event? We still have adhoc increases for promotions (had 2 of those in the last 5 years). As far as I can tell from looking around, my employer's remuneration policy is fairly typical of the financial services industry.

I work with a similar structure. At present a vast majority of my yearly income is discretionary bonus. I prefer it because it better supports a meritocracy (and because I'm on the right side of the rankings).

100% except the "unmeritorious" are also unambitious and just cling,. Guess it helps having deadweight around to stand out from.

 

[Garson007]

Not sure I understand...your company treats a promotion as an annual increase event? We still have adhoc increases for promotions (had 2 of those in the last 5 years). As far as I can tell from looking around, my employer's remuneration policy is fairly typical of the financial services industry.

No, I'm saying due to the annual increase nature of their current structure they will be unwilling to meet the remuneration package that a promoted candidate could find at a different company (very few companies will give you an increase of over say 20%). Basically, juniors when promoted are almost forced to look at alternative employment as the entry level for their title is higher than what they earn.

 

[TheOx]

In September last year, I got a 24% increase. Then got no bonus because reasons.

Just switched jobs, 90% increase and get cellphone allowance. Mine and my gf's medical aid, I have group cover and group disability In my package.