I’ve always heard that “go getters” never want to be in a union because their high performance would get them a higher merit based pay increase. But if merit goes away…there is no incentive to work hard. And they might want to insure that the “jar of peanut butter” used to spread the money will be the “family size” jar.
My company started doing that a few years ago with most managers raises, but the better employees will get larger bonuses. They also may give new managers bigger raises in the first few years to catch them up to the other managers.
We get small COLA (2-5%) but the bonus programs are all discretionary. My annual bonus have ranged from 0% during covid to about 40% with the average year in the 20-25% range. This year I am anticipating the total bonus to be about 40% since my stock options start to vest.
1 Like
Different strokes for different folks. After 4 years of military service, I spent the first 7 years in a salaried job, then I opted for a job with my income based on my sales performance and never looked back for the remaining years of my working life.
I figure that I made at least twice as much as I would have staying in salaried positions.
If those types of raises are the only increases those employees are receiving, it’s a bad idea. The employer is basically telling its employees that there is no need to work harder or smarter. That can eventually result in the best employees leaving and the worst ones staying. If there is as additional bonus or other perk that is performance based, then it may not be a problem. When I was working, I was bonus and restricted stock eligible and that was where the money was.
1 Like
We do merit based raises.
Where if you don’t “meet” or “exceed” expectations you only get COLA, not merit.
Where I worked if you didn’t meet or exceed you got fired.
I had these for years when I worked for Sprint. One year they said that because of tough times the maximum raise we 3%. Then, the board agreed to increase the CEO’s pay from $1 million to $2 million.
That’s every year in a union, you know how much of a raise everyone is getting and when. Plus no merit bonus, everyone gets only what’s in the contract.
Yes. And the only one with a contract was the CEO, who got a 100% increase.
You should have looked for a CEO job or at least found another company to work for if you thought you deserved more than a 3% raise.
No need to since the magnificent leadership eventually led to the elimination of a company called Sprint
This topic was automatically closed 7 days after the last reply. New replies are no longer allowed.