Change in pay review policy at work

[Scarylady]

I work in the private sector and previously annual pay reviews would be based on an agreed % across the board and then adjusted up or down depending on your performance. This isn’t written into a company policy, I’m just aware as at a relatively senior level.

In the last year they have changed the structure of the company so that we have a number of divisions and they are trying to make each division operate like a small business.

In light of this, they have allocated each division their allocated % pay increase, which I understand is 2%, however because a number of people in my division are getting promoted, their larger increase in salary comes out of the allocated pot and essentially reduces everyone’s % increase. I understand those with poor performance won’t receive any increase and the highest anyone else receives is 1.5%

The problem is, I have no argument because they just say pay reviews are discretionary.

This really doesn’t seem fair to me, do you agree?

As you say they are discretionary so unlikely there is anything you can do

I feel your pain! I've just been asked to take a 30% bonus cut as the group flatlined (i.e. no growth) in 2019, despite my own growth (and personally accounting for 1/4 of the group turnover, all built from scratch).

I keep telling myself that if I ignore the % all that's happening is they're putting me back 2 years and it's still a great package ... but it still stinks!

My own dilemma is whether to move on - and probably not get anywhere near the same money anyway, plus certainly not the lifestyle balanace - or swallow, smile and enjoy the ride.

Would you move, or is it not that 'drastic'?

What you've described (in terms of how the pay is calculated now) in my opinion does sound perfectly fair. However I can completely understand that compared to what it was before it absolutely wont feel fair to you as you will be worse off.

YANBU to feel a bit miffed. But as someone else said... is it bad enough that you would move jobs? Cause I definitely wouldn't complain if I were you, but I would be asking myself if there were better opportunities elsewhere.

Standard practice ime. Are you in a support function so not aligned to a business unit?

Each group at my nonprofit is allocated an amount and that has to be distributed among the group. So yes, if there are a bunch of promotions, no one else gets anything. My manager tries to manage the promotions so they don’t end up bunched up too much.

I think that’s the thing. No one knew about this change in strategy so all the promotions were promised before hand.

Also, we bill out to our clients on an annual budget and we everyone was instructed to increase our fees by 3%. So how is it fair that the company are just going to pocket the entire 1%.

Would I change jobs, unfortunately my hands are tied. I went part time a year ago after having a baby and am currently pregnant again. No one would hire me so I’m stuck!

I don't have any issue with poor performers not getting any pay rise.

However it is very difficult for good staff who aren't being promoted to have payrises limited. But 1.5% in the current economy is not terrible? CPIH is 1.4% so that is in line with inflation so completely appropriate.