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My company has two parts to its raise system.

Total Raise = 3% (Cost of Living Increase; Nearly all employees get this part) + 0 to 6% Performance Raise (Raise based on performance and how you fall in your category)

Performance raise is based on your performance ranking for the year. They have salary ranges that cover around $20k with overlap to the next range. They have a percentage of 80 to 120% of the median salary in that range. Once your salary goes over 100% of the median, you start to get considered to move the next salary range.

Salary ranges affect bonuses. Say grade 20 for instance you get a 10% coefficient into our bonus program. Bonus program involves company performance, unit or office performance, personal performance and salary range performance coefficients multiplied together.

Engineering company so it has to be complicated I guess.

I'm in my first job and my company's raises are performance based. Generally 3% is guaranteed, but the performance scale can vary between 0-5%. My department is very new to the company and my pay structure is not up to pace with the consultant's pay structure.

The C level releases the total number of available promotions, then the managers argue and lobby over how many their group deserves, then the managers gets to dispense them out as they see fit.

Bonuses are assigned to each group and passed down layer by layer through management.

It's a pretty logical system, but it can lead to some unhappy groups when they don't have enough promotions to give to deserving people. Banking is mercenary work, people will leave if you don't pay them enough.

quote:

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What a great company to work for...

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I wasnt going to say anything, but clearly you saw where I was going...

In my defense, I have been with the company for over 5 years. My benefits are outstanding and very inexpensive when compared to our competitors. In addition, I get 8-10 weeks of paid vacation a year which aint too shabby.

does this accumulate so that you will be paid for it when you leave/retire.

In my firm it works something like this:
Top 5% = 12% raise
Next 20% = 6-8% raise
Next 25% = 3-6% raise
Middle 50% = 0% raise

This structure works really well in a crappy economy......

All salaried personnel rated 1.0-3.0


At least 10% have to be rated <2.0
At least 10% have to be rated >3.0
The other 80% rated 2.0-2.9


Basically 1 person rated bad, 1 rated excellent, and around 7 of used average.

I've averaged. 25¢ an hour or around $700 a year raise. Been there 5 yrs and make about $2700 more than when i started and the last 3 years been the best ever.

My company - your job description/title is assigned to a group of pay grades and your salary is at a certain range in that pay grade (ratio from bottom of pay grade to top of pay grade). Each pay grade is about $15k difference.

The lower you are in the "range" in the pay grade, the greater percentage of pay raise you're eligible for (goal is to get you to the mid-range faster rather than later - if you're a decent performer that is). You get above the mid-point, and your pay raises slow down more and more - so, naturally you look for a promotion if money is driving you, and the whole thing starts over (on average, promotions occur every 3-4 years for good performers).

Pay raises generally range from 2 to 8 percent each year, sometimes a little bit more if additional money is left over from the pool of money alloted.

You're rated from excellent down to unsatisfactory. Haha, goal here is to figure out what your manager expects - set up some goals each year, fulfill them and keep your boss happy and out of trouble with upper management - high ratings. Fortunately, all employee evaluations are discussed with each organization's management team - so, your rating is basically agreed upon by a group of folks (if your boss doesn't like you but other managers think you do good work, you'll be okay).

Bonus: depending on your pay grade, you're eligible for certain percentage range (say 10-20 percent for one grade, 15- 25 for another, etc. all the way on up to 100 percent). Each group/division has a pool of bonus money each year, and managers divide this up based on performance (personal and organization), profits, etc.

Extra stuff - restricted stock is handed out twice a year to high performers and people who are in risky overseas locations, etc. Looks great on surface until you realize it's spread out over a 4 year period (one third each anniversary of the award). Higher grades and certain levels of management can get stock options and other perks not available to others.

So, overall it all boils down to personal and organizational performance, locations, and job description.

Everyone with good reviews gets 3%....but there is ample opportunity to get a pay bump every 2 years (around 18-20%) if you are willing to move around within the company.

I'm just not sure if I'm willing to move around. I'm on an incredible team....we are definately the top of the heap.