Okay, so my company has pay for performance on an “aggregate”, meaning on average my co-workers will get a certain percentage. The aggregate is informed by the “median market rate of labour” in my industry.
The kicker is this: if you are at or above the median, your wage increases are throttled down, while those who are below get larger increases, even if two workers performed equally well. Normally new hires will receive larger increases but have a smaller salary, while the more senior workers will get less but stay at a medium salary. I find this to be unbelievably unfair.
How common are pay schemes like this?
On a similar matter, the company does give bonuses at 5% for mere labourers like myself, but anywhere from 10-15% for management and sales people. They can make as much $100k+ while we’re capped at $50-$65k.
Our asks for more pay at the bottom end (the majority of the staff) has resulted in the company threatening to pull the bonuses from the top end (minority).
The company can afford both, but the folks at the top end are now planning to demolish our efforts to organize.
What should we do?