I don't get this. Saying you can't raise someone's salary above a certain % is pure arbitrary BS. There's no rule they can't do it unless they create the rule. This is what keeps salaries depressed if you stay at a company long enough. They'll have to pay market for your replacement when you leave... I mean it's just stupid.
A lot of the equal pay movements drove standardization into pay structure and now companies say that it's to ensure everyone is compensated fairly while keeping wages well below any reasonable margin of what that employee generates for the company.
I find it’s useful to consider all the angles until one does make sense. In this case, enforcing miserly annual increases does make sense if only a small percentage actually do leave for increased pay. I personally find this to be true in my own network. Very few developers I know job hop to increase pay. Most stay at companies for 5-10 years.
From management perspective it’s unwise to pay more than you have to. And if management is competent, then the departure of a few should not be a hardship. That’s a big “if”.
Now, the great resignation may change this calculus, that remains to be seen.
Comments
Aside:
I don't get this. Saying you can't raise someone's salary above a certain % is pure arbitrary BS. There's no rule they can't do it unless they create the rule. This is what keeps salaries depressed if you stay at a company long enough. They'll have to pay market for your replacement when you leave... I mean it's just stupid.
A lot of the equal pay movements drove standardization into pay structure and now companies say that it's to ensure everyone is compensated fairly while keeping wages well below any reasonable margin of what that employee generates for the company.
I find it’s useful to consider all the angles until one does make sense. In this case, enforcing miserly annual increases does make sense if only a small percentage actually do leave for increased pay. I personally find this to be true in my own network. Very few developers I know job hop to increase pay. Most stay at companies for 5-10 years.
From management perspective it’s unwise to pay more than you have to. And if management is competent, then the departure of a few should not be a hardship. That’s a big “if”.
Now, the great resignation may change this calculus, that remains to be seen.