Question regarding targeted pay range and "compa-ratio" (employees, average, job)

[John0978]

Did not know this existed until today. Was looking at some info on my company profile and found this info. States the following in regards to my position/title:

Targeted pay range: $63,300 to $94,900

my current salary is $63,800 putting me at 81% compa-ratio. 100% (midpoint) would be $79,100. Page says they try to keep all employees within 20% of the midpoint (80 to 120% of $79,100).

I was just hired a little over a year ago. Got a nice raise upon joining (from the 40s at my last company to just over 60k). Have had one review and it went well. Got a 5% raise. I am 29 and have a little over 4 years experience in this line of work, (1.25 years in my current position, 1.5 years in essentially the same position at a prior company, and 1.5 years at a lower level but directly related position at the same prior company).

I get that I am young and have less experience then most employees, so it makes some sense to be on the low end of this "compa-ratio", although I still do not like it.

Question is, should I continue to expect raises like 5% every year while I am near the bottom of this "compa-ratio"? Assuming I continue to do a good job and get good reviews of course.

Any thoughts?

[jribe]

Depends on your company- but in my experience most departments are given a pool of money to give out to eligible employees at annual review time. There's a lot of different factors that would go into the amount you would theoretically receive- usually it's mostly performance based but typicslly if two employees are the same "rating" but one was at 85% and the other was at 95% the lower would get slightly more for the annual raise. Assuming a 5% is pretty high though at least in my industry the average seems about 3.

[John0978]

Originally Posted by jribe

Depends on your company- but in my experience most departments are given a pool of money to give out to eligible employees at annual review time. There's a lot of different factors that would go into the amount you would theoretically receive- usually it's mostly performance based but typicslly if two employees are the same "rating" but one was at 85% and the other was at 95% the lower would get slightly more for the annual raise. Assuming a 5% is pretty high though at least in my industry the average seems about 3.

Well I got 5% this year, so I was hoping that would continue. Especially since I am on the "low end" of the salary spectrum apparently. My performance is good.

I guess I cant bank on it, but I will definitely bring this point up if I were to get a disappointing raise in the future. Hoping to get to the midpoint over the next few years.

[Hemlock140]

Our annual performance-based raises average about 3%, however, the 6 month probationary raises are often closer to 5%.
Based on the information given, I would say that you should expect 2-3% over the next few years. It's hard to actually get ahead (beat inflation) with annual raises, it requires promotions.