Internal Promotion Pay Caps

Charter / Eng
Mæstro

Charter Eng

PRE
T-Mobile
Mæstromore
May 15 14 Comments

Was customer support and pursuing degree, now senior engineer, span of 5 years. For any internal promotion we have a percentage cap on salary increase, TC was 45k as pleb, market rate for position offered was 90k at the time (4+ years ago)... Still not at original market rate for position and now moved from engineer lll to engineer lV (4 YOE as eng).

Do other companies do this? It seems like a horrible policy to keep internal talent.

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TOP 14 Comments
  • Google __human__
    You need to be a part of the market to be paid market rate. You're only a part of the market when you're shopping offers and transferring companies.

    Companies get away with this kind of bs because people are inertial and management is myopic.

    Your best interest is to find someone who will pay you what you're worth, increase your worth while you're there, and then transfer again when they once again fail to keep up comp with your value.

    It's dumb, but that's just how the game works.

    Compounded over a career, transferring every 3-5 years makes massive gains in earnings over being loyal.
    May 15 4
    • Charter / Eng
      Mæstro

      Charter Eng

      PRE
      T-Mobile
      Mæstromore
      OP
      Well that makes me sad, but it is what it is. So google does this too?
      May 15
    • Google __human__
      It's just a fact of the labor market that upward pressure on wages is higher between companies than for employees within a company, since competition for labor between companies is practically the only upward pressure on wages.

      There's really no other reason to give you a raise other than to compete with how much someone else is willing to pay you.
      May 15
    • Charter / Eng
      Mæstro

      Charter Eng

      PRE
      T-Mobile
      Mæstromore
      OP
      As an aside, this is some of the most profound advice I have ever received in my career.

      Ever get hit in the face with a concept so simple that you don't know how you could have missed it for so long, and you spend days ruminating on it? This was that.

      Thank you, and bravo.
      May 21
    • Google __human__
      That means a lot. Thanks for letting me know you found one of my rants useful.
      May 21
  • CenturyLink kIde11
    Leave and come back. CTL is the same way.
    May 17 2
    • Sprint Chickenlip
      ^yup, ridiculous isn't it?
      May 17
    • Charter / Eng
      Mæstro

      Charter Eng

      PRE
      T-Mobile
      Mæstromore
      OP
      Wooooooooow that's dirty
      May 20
  • Charter / Eng gwcM34
    FWIW, I’m in the same boat at Charter. Percent cap was cited when taking an internal position, still short of midpoint for Charter and well short of market rate.
    May 17 0
  • F5 Networks xxbobstone
    Yup internal movements have a cap of comp ratio and they usually align that with your group. If you want market rate, leave for another job. Plus, that’s the only way you’ll grow too. Don’t stay stagnant.
    May 17 0
  • Cisco SFXH32
    Want market rate move to another role and get it.
    May 17 0
  • Sprint Chickenlip
    Yeah, done a few jumps out, back, out, back. If you can strive for a 10-15% per jump, every 3 to 5 years, you'll stay up near location market cap. It is sad that "loyalty" to the company anymore means loss of income over time. Market changes, becomes more competitive, you need to as well.
    May 17 0
  • This comment was deleted by original commenter.

    • Charter / Eng
      Mæstro

      Charter Eng

      PRE
      T-Mobile
      Mæstromore
      OP
      Austin, sorry for the slow reply
      May 20
    • Charter / Eng
      Mæstro

      Charter Eng

      PRE
      T-Mobile
      Mæstromore
      OP
      What's there?
      May 20