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How many company link salary with promotion

Shailesh Chandra
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Joined: Aug 13, 2004
Posts: 1081

I was just curious to know, how many companies are there who link salary hike only with promotion.

They might be doing performance appraisal on a regular interval, but salary hike will be happen only if you got promoted to next level in your organization.

Shailesh


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tapeshwar sharma
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Joined: Mar 10, 2006
Posts: 245
I think most of them do except for the Government owned.
Generally, promotions happen once in 2-3 years and they want to keep people motivated in the meanwhile. So, part of the salary is variable i.e proportional to your performance appraisal.
Shailesh Chandra
Ranch Hand

Joined: Aug 13, 2004
Posts: 1081

I think, I should rephrase my query...

  • Performance appraisal will happen, but no salary hike would be there
  • Whenever Promotion will happen either once in a year or twice in a year or once in two year, salary will be hiked.


  • Does this seems reasonable ?

    Shailesh
    tapeshwar sharma
    Ranch Hand

    Joined: Mar 10, 2006
    Posts: 245
    I think that's exactly how I understood and said:

    So, part of the salary is variable i.e proportional to your performance appraisal.


    Or do you mean just the base salary? The variable component is always there whether you are promoted or not.
    Shailesh Chandra
    Ranch Hand

    Joined: Aug 13, 2004
    Posts: 1081

    Variable component is not in picture !

    Shailesh
    tapeshwar sharma
    Ranch Hand

    Joined: Mar 10, 2006
    Posts: 245
    Well, then its generally through promotion only that they change base salary. Sometimes, if you add a qualification like Master's then also your base salary can change.
    Shailesh Chandra
    Ranch Hand

    Joined: Aug 13, 2004
    Posts: 1081

    Most of the companies do appraisal annually and hike the salary 0% to 40% irrespective of promotion, but they do not link it only with promotion.

    Shailesh
    tapeshwar sharma
    Ranch Hand

    Joined: Mar 10, 2006
    Posts: 245
    ok, so I failed in your test. Will prepare better the next time.
    Shailesh Chandra
    Ranch Hand

    Joined: Aug 13, 2004
    Posts: 1081

    Originally posted by prashant bhardwaj:
    ok, so I failed in your test. Will prepare better the next time.


    Its not like that just wanted to check if this is a new trend in software industry or it is just a practise of few companies.

    Shailesh
    Mark Herschberg
    Sheriff

    Joined: Dec 04, 2000
    Posts: 6037
    Originally posted by Shailesh Chandra:
    Most of the companies do appraisal annually and hike the salary 0% to 40% irrespective of promotion, but they do not link it only with promotion.


    I don't have hard data on this, but this sure doesn't sound right to me. What source provided these numbers?


    In the US, many large corporations provide minor annual salary increases, typically on the order of 2-3%. These are designed to help employees keep up with the cost of living as inflation typically moves in that range. Sometimes the difference between getting 1% and 4% is based on performance; sometimes it's based mostly on company performance and is fixed across the company. Many union workers have COLAs (cost of living adjustments) built into a multiyear contract.

    Up until about 15 years ago promotions in the US almost always involved raises, but a promotion with more responsibility and no raise has become more common. I was just talking to a friend the other day whose boss left the company; the boss isn't being replaced so my friend is taking on more responsibility with neither a promotion nor raise. This happens much more often in down economies. My anecdotal experience with smaller companies is that promotions sans raises is more common.

    Ultimately all variants happen, but I don't think any organization collects hard data on it.

    --Mark
    Shailesh Chandra
    Ranch Hand

    Joined: Aug 13, 2004
    Posts: 1081

    Originally posted by Mark Herschberg:

    I don't have hard data on this, but this sure doesn't sound right to me. What source provided these numbers?



    even I don't have hard data, indeed 40% is too high but there are very few person who touch salary hike of the range between 30% to 40%. If I am to guess then only 3% to 5% .

    I have seen in last 5-6 years these people, Its not that they are very talented but there are separate reasons for same. Sometime they maintain higher dependency in critical application or sometimes they maintain high level of relationship with their boss.

    On a average a person get Appraisal between 10% to 20%, and people demand 25% to 35% salary hike when they change employer. This percentage in hike reduces if experience is higher.

    Shailesh
    Mark Herschberg
    Sheriff

    Joined: Dec 04, 2000
    Posts: 6037
    Originally posted by Shailesh Chandra:

    On a average a person get Appraisal between 10% to 20%, and people demand 25% to 35% salary hike when they change employer. This percentage in hike reduces if experience is higher.



    I am skeptical of these numbers as well. Do you have a source for them?

    --Mark
    Kalyan Anand
    Ranch Hand

    Joined: Feb 07, 2007
    Posts: 194
    Both of you are right. Shailesh speaks for Indian market and Mark for US.

    Shailesh - 40% raise is generally too high and it is given to those who joined at a very very low pay scale. In such cases you could see a 100% jump as well. If you joined at a regular pay scale the salary hike is between 5-20 or 25% within the same company in India.
    arulk pillai
    Author
    Ranch Hand

    Joined: May 31, 2007
    Posts: 3275
    In Sydney, you generally get 3%-5% rise to keep up with the inflation and some companies do have a performance based bonus scheme between 5% - 20%. This is based on the company and individual performance.


    For some the real pay rise come in when they decide to move on . .


    500+ Java Interview Questions and Answers | Java job hunting know how & Java resumes
    Mark Herschberg
    Sheriff

    Joined: Dec 04, 2000
    Posts: 6037
    Originally posted by Santhosh Jali:
    Both of you are right. Shailesh speaks for Indian market and Mark for US.


    It's not clear to me Sailesh is speaking about the Indian market; he never said that he was. Even if he was, he seems to be speculating and not providing any data from a reputable source.

    --Mark
    Shailesh Chandra
    Ranch Hand

    Joined: Aug 13, 2004
    Posts: 1081

    Originally posted by Mark Herschberg:

    It's not clear to me Sailesh is speaking about the Indian market;


    Actually the data I posted was related to indian market, though post is meant for all markets, I am sorry if I caused any confusion

    Originally posted by Mark Herschberg

    he seems to be speculating and not providing any data from a reputable source.


    Actually, I do not want to quote the company's name, also the companies do not share these data. Companies also ask their employee in written not to share these details with anyone.

    but people do share these details
    [ September 18, 2008: Message edited by: Shailesh Chandra ]
     
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