Salary "capping"

LC88

This has happened at my company.

There are people in a certain band (i'm in it too) where the top earners are known to be on about 45k yet people at the bottom are on 19k. The exact top and bottom salaries are unknown (as it would probably cause widespread anger) but people roughly know the above to be true.

Of course those at or near the top have been there a long time/have alot of experience but the band has gotten so large they had to implement a freeze to allow those at the bottom to catch up. Although some are classed as 'experts' they are not, by definition of their job specification, doing anything more than those at the bottom, its just their length of service and experience comes with a premium. And I can sort of understand the company wanting to keep a cap on wage increases where possible and it also prevents people being paid more than their line manager (which has also happened at my company).

In my opinion, if you're at the top and unhappy then look for a new job or work towards for internal promotion to manager grade. At the end of the day you can't have it both ways (i.e keep getting never ending pay increases despite not taking on more responsibility or becoming a higher grade/manager).

getmore4less

LC88 wrote: »

This has happened at my company.

There are people in a certain band (i'm in it too) where the top earners are known to be on about 45k yet people at the bottom are on 19k. The exact top and bottom salaries are unknown (as it would probably cause widespread anger) but people roughly know the above to be true.

Of course those at or near the top have been there a long time/have alot of experience but the band has gotten so large they had to implement a freeze to allow those at the bottom to catch up. Although some are classed as 'experts' they are not, by definition of their job specification, doing anything more than those at the bottom, its just their length of service and experience comes with a premium. And I can sort of understand the company wanting to keep a cap on wage increases where possible and it also prevents people being paid more than their line manager (which has also happened at my company).

In my opinion, if you're at the top and unhappy then look for a new job or work towards for internal promotion to manager grade. At the end of the day you can't have it both ways (i.e keep getting never ending pay increases despite not taking on more responsibility or becoming a higher grade/manager).

What they needed to do is break the job down into clearer skill/productivity bands. idealy by adding ones on top of the one there and squeezing the current one down.

That give the high flyers a better/clearer chance of progressing faster and caps the service related creep.

typical in IT are things like(or variations),
trainee XXX
junior XXX
XXX
senior XXX
Consultant XXX
architect XXX
CTO

terra_ferma

LC88 wrote: »

In my opinion, if you're at the top and unhappy then look for a new job or work towards for internal promotion to manager grade. At the end of the day you can't have it both ways (i.e keep getting never ending pay increases despite not taking on more responsibility or becoming a higher grade/manager).

Don't forget that a pay freeze is in fact a pay cut, because of inflation.
If they gave a rise in line with inflation they would be maintaining the status quo.

What I found in the sector I used to work in, that salary were allowed to rise within a certain job role, to attract and retain good workers. Then they would get too high, so there would be a restructure, and workers given a new role within a lower salary structure. The highest paid workers would (if roles were available) either take on more responsibility, or eventually face a pay cut.
Some organisations that didn't restructure found themselves in financial trouble, with workers that were overpaid for the role, and not enough staff turnover to get rid of dead wood and attract fresh ideas.
This happened at all levels, including Directors.

Hmm71

antonic wrote: »

Its a normal situation in the Civil Service where I work.

I have been top of my payscale for 21 years now, so no big pay rises for me, but I am happy because I have been on the max for so long.

Is the pay freeze for those earning over a certain amount still in place?

view

this sounds very familiar,if you work for a very large worldly beverage institution then yes, they can do this - all detailed in contract, send a note to HR to ask for full contract details if your contract is out of date and doesn't include fully the clause. They have levels within levels and sounds like you're at the top of band 5?

Andy_L

Hmm71 wrote: »

Is the pay freeze for those earning over a certain amount still in place?

Its been relaxed to a 1% max rather than a freeze

Takeaway_Addict

terra_ferma wrote: »

Don't forget that a pay freeze is in fact a pay cut, because of inflation.
If they gave a rise in line with inflation they would be maintaining the status quo.

What I found in the sector I used to work in, that salary were allowed to rise within a certain job role, to attract and retain good workers. Then they would get too high, so there would be a restructure, and workers given a new role within a lower salary structure. The highest paid workers would (if roles were available) either take on more responsibility, or eventually face a pay cut.
Some organisations that didn't restructure found themselves in financial trouble, with workers that were overpaid for the role, and not enough staff turnover to get rid of dead wood and attract fresh ideas.
This happened at all levels, including Directors.

A pay freeze is not a pay cut, just because it gets you less for your money it doesn't make it a paycut.

terra_ferma

Takeaway_Addict wrote: »

A pay freeze is not a pay cut, just because it gets you less for your money it doesn't make it a paycut.

Maybe not technically, but yes, freeze is a pay cut in real terms. If you work for a company and they are not giving you a cost of living increase, they are in fact giving you a pay cut. It may not actually mean getting less pennies in your pockets, but less bread on your table. They are valuing your work less and less as time goes by.

pinkynatxx

Thanks for all your replies. Our payrises are to cover both inflation and performance. After a chat, I am now going to have a monthly bonus rather than one in a lump sum.
Again. Thank you all

jackieblack

terra_ferma wrote: »

Maybe not technically, but yes, freeze is a pay cut in real terms. If you work for a company and they are not giving you a cost of living increase, they are in fact giving you a pay cut. It may not actually mean getting less pennies in your pockets, but less bread on your table. They are valuing your work less and less as time goes by.

And you do end up feeling like they value you, not just your work, less and less as well.
I am top of my (modest) salary band, having worked over 10 years for current employer, this has been frozen and and we have not had a 'cost of living' rise for 4 years (and was only 0.25% the year before that)
How valued do I feel? :think: :wall:
:silenced: