In our org our salaries are divided in two components, first part is fixed CTC and second is variable. When I started my career here, the variable component used to be a significant sum but pretty small compared to CTC. People were happy with their CTCs and happy to get some extra money at the end of the year. But gradually over the course of years during our annual increments, the VC became bigger and bigger percentage of CTC. We would get a smaller increment in CTC, but a bigger increment in VC. People did not complain because even if you did just what was needed, you would get min 60% of VC. If you performed better you could easily get 75-85% and that kept rising every year.
Beginning this year, the management made a change to how the VC would be calculated. 50% of VC was now tied to company EBIT. On top of that they also changed how our Goals achievement for personal contribution to VC is calculated, which now is based on meeting the department target. The target was set very vaguely. The VC was announced recently, and turns out people are at best getting about 40-45%. A huge sum of money virtually promised to us is gone. We had a very insignificant increment in CTC due to slow down in business but now even the VC is gone.
Legally, they can say the VC was never promised 100% to us but they did misguide when they said our salary is at par with the industry considering CTC+VC.
Explain that to the junior engineer who spent nights and weekends working on project to meet customer deadline and then was awarded satisfactory because of the department target.
We already had attrition because of lower CTC increments at our org and better pay from competitors. Now, with VC virtually gone, and discontent rising, good luck to management in retaining talent.
I loved working here because of people around me and money didn't matter to me so much, but this smells of sheer disrespect of our year long efforts. I am updating my resume, because I know I deserve much better than this. I am getting out.