Pay Equity has killed the performance incentive of my top employees. I've had to explain to them that the way raises work now, the lower paid employees in the same grade, with lower review scores will get higher % raises then them. With no end of that in sight, they can do the math on their potential pay increases over the next few years. They are already putting out resumes and I'm dreading loosing them.
I'm curious how pay equity works in your organization. If people with lower review scores get higher raises, then that doesn't sound like pay equity to me. Are you willing to share more?
@@SallyLoftis-fj8eh There is a matrix of % relative pay to job code, and review score. Relative pay on the x axis, review score on the y axis. The matrix is setup to normalize pay grades. Bring under paid up, and slow progression of "overpaid". The percentiles are skewed so the same % raise is basically a straight diagonal across the matrix. Top earner with top review will make the same % raise as middle of the pack earner with average review. Keeps going down so a lower paid worker with a borderline negative review would get the same % raise. If the goal is to have average people with average pay, sure the matrix will help normalize that. However in a performance based industry, I don't want middle tier performers. Historically we attracted top talent with high pay, good benefits and healthy bonuses. Loyalty was rewarded with consistent pay bumps. I can't do that any longer with this matrix. My top talent is "overpaid" by HR job code pay brackets that are globally and industry normalized.
@@SallyLoftis-fj8ehyou have to consider the new employee is learning. If you grade their performance on the same scale as a seasoned employee, they’ll NEVER hit midpoint. I am in that situation. I’ve only gotten positive reviews about my progress. When I found out how low my pay was I was furious and talked with my boss about quitting at 6 years of experience. I got a 13% raise and was still below midpoint. The relationship still hasn’t been repaired.
Pay Equity has killed the performance incentive of my top employees. I've had to explain to them that the way raises work now, the lower paid employees in the same grade, with lower review scores will get higher % raises then them. With no end of that in sight, they can do the math on their potential pay increases over the next few years. They are already putting out resumes and I'm dreading loosing them.
I'm curious how pay equity works in your organization. If people with lower review scores get higher raises, then that doesn't sound like pay equity to me. Are you willing to share more?
@@SallyLoftis-fj8eh There is a matrix of % relative pay to job code, and review score. Relative pay on the x axis, review score on the y axis. The matrix is setup to normalize pay grades. Bring under paid up, and slow progression of "overpaid". The percentiles are skewed so the same % raise is basically a straight diagonal across the matrix. Top earner with top review will make the same % raise as middle of the pack earner with average review. Keeps going down so a lower paid worker with a borderline negative review would get the same % raise.
If the goal is to have average people with average pay, sure the matrix will help normalize that. However in a performance based industry, I don't want middle tier performers. Historically we attracted top talent with high pay, good benefits and healthy bonuses. Loyalty was rewarded with consistent pay bumps. I can't do that any longer with this matrix. My top talent is "overpaid" by HR job code pay brackets that are globally and industry normalized.
@@SallyLoftis-fj8ehyou have to consider the new employee is learning. If you grade their performance on the same scale as a seasoned employee, they’ll NEVER hit midpoint. I am in that situation. I’ve only gotten positive reviews about my progress. When I found out how low my pay was I was furious and talked with my boss about quitting at 6 years of experience. I got a 13% raise and was still below midpoint. The relationship still hasn’t been repaired.