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How deep is the water for the year-end salary increase?


Foreword: Why should the boss defend his ability to persuade himself?

A 90-year-old sister, working in a foreign company consulting company, and I am also a friend.

She left the job last week, and the boss valued her very much, so she suggested that she resign .

You are not mistaken.

She has been in the past five years, and her annual year-end scores are quite high. Every year, the salary within the company is higher than the median market value. The boss takes care of her and values ​​her.

But after five years, she found that the salary was still pulled out of the market by three streets. The new colleagues who dig from the outside, even if the performance is not good, still crush her in terms of salary and rank.


She talked to her boss and wanted to increase her point at the end of the year. The boss seriously thought about it and replied to her:

You still have to change jobs. Jump back in 1-2 years, you can talk about how much you pay. The rank can also rise.

The boss advised to retreat? Who will help me with my chin?

Think about it, it is normal. Even the foreign companies on the tall, often have to deal with outsiders to discuss, while treating their own people is exceptionally stingy.


Can you still raise your salary at the end of the year?

There are two very well-known principles for payroll management in human resource management:

External competitiveness & internal fairness

The so-called external competitiveness means that the salary given by the enterprise is not lower than the market level, and the talents are avoided. When the person is dug, the salary level is higher than the market level, and the competition is competitive to ensure the smooth mining.

The so-called internal fairness refers to the same work content within the company. Colleagues of the same rank cannot have too much salary gap. This means that the salary of the excavated person cannot be high/low enough. If it is too high, the old colleague cannot accept it. If it is too low, the new person may change the job again soon.

The reason is understandable, but in reality, the salary is very hard.

Especially in the market of China's flying (room) speed (price) change (high) (enterprise), these two principles, like the two villains in the brain, struggle in the minds of business managers.

External changes are big, and the internals cannot keep up.

In 2017, I mentioned in the previous article that the company’s year-end salary increase has been declining for five consecutive years .

What are the social rules that everyone does not say, but need to know?

This means that if you are a graduate in 2011, the average starting salary is between 2,500 and 3,500, which is calculated at a higher 3,500. The five-year growth rate is based on the median market value. By now, the salary can reach 5,000 a month. . However, by 2017, the average graduation salary for undergraduate students is close to 5,000.

After five years of work, I just got the money I just graduated from. Whoever happens to this thing will be angry and gain weight.

As GDP growth declines, corporate annual salary increases generally decline (the rate of making money is also falling).

In this case, if there is no additional salary increase mechanism (such as promotion, salary increase, etc.), only once a year's year-end salary, our salary will only be further and further away from the market level.

This has not discussed the price increase in 2015-2016, a comparison of salary increases, minutes to make people cry to kidney loss.

When externally digs people, if the company only pays the salary of the existing employees, it will be hit by the market in minutes. Therefore, many companies are aware that external digging is definitely a matter of respecting the laws of the market. It must be simple and rude to be higher than the market price.

Of course, there are exceptions. Young companies with a focus on young people are often referred to as Whampoa Military Academy. For example, the four majors 5-10 years ago, recruiting young people, have clear salary expectations. This year’s salary is 3,000, next year’s 6000, and the next year’s manager , 12,000. The premise is that these companies are Whampoa Military Academy. Because they are too tired or too long-lived, their long-term employees can't stay, so they need a lot of young people to add them.

In some relatively stable industries, such as manufacturing, chemical industry, a manager for 15 years, there is no place to vacate, the salary increase is not likely to be so arrogant.

Therefore, for a more stable workplace, I would recommend an interview 1-2 times a year to understand the market and maintain market sensitivity. I also took the world by myself and wrote the following article.

Sean Ye: I know you do not want a new job, but you should not refuse to interview

Year-end salary increase, a word is difficult to complete

Outside recruiting, the budget is newly approved, according to the laws of the market. Well, it’s simple and rude.

At the end of the year, the salary is different from the external recruiting. The budget is dead: this year's performance has increased by 20%. The company's salary can only be maintained at the same rate, 20%.

20%, how is the company distributed? The core departments of sales/finance are definitely more divided. The executives and core talent teams are definitely more divided. Others can only be divided in the remaining parts. It is guaranteed to reach the market level (6% in 2016). .

Do you want to go up a little more at the end of the year?

You turn to the line manager who has always supported you. But you don't know, most of the line managers have no decision.

Your salary increase is drawn from the plate of the company's salary increase: you have risen a lot, and some people have risen less, affecting not only your colleagues in the same department, but also the entire company, including executives.

The general manager of the company, the chief financial officer will naturally ask your line boss:

  1. Why give you more? Do you have any additional contributions?
  2. Don't give you a rise, will you go? Losing your company's losses?
  3. If you give extra for you, do you still need to give other colleagues with similar performance, and also rise to this ratio?
  4. If you are up, will you stay? Or is this wave of gains, and the job is to get a higher salary?

Take a closer look at these issues:

There is only one question related to "right or wrong": Do you have any additional contributions to the company?

There are four questions related to "pros and cons": these four questions are very difficult to answer.

Few bosses are willing to fight for your salary and fight for the present. The challenges he faces are too many, and even if they struggle, it will be difficult to gain.

Looking back at the leader mentioned at the beginning. It is a sincere way to give the sister a reliable solution.

He knew that he needed the girl to continue to work. He also knew that under the current system, there was no way to win more for the girl. Therefore, the leader (which is also a conscience) gives a new strategy from the perspective of the girl itself:

Jumping away from the unresolved pursuit of fairness, the internal salary increase system: quit, and then jump back to apply the "external market competitiveness" principle.

Not suffering from poverty, but suffering from inequality. When the company’s elderly find that the newcomer’s company is higher than itself, it is easy to get mentally imbalanced and lose. When I look back and find that when I return to the company, the salary increase and promotion can do everything, and then other colleagues who stay in the company will follow suit.

in conclusion:

Enterprises that pursue external competitiveness may fall into a situation of high salaries or high turnover rates .

Hidden salary level? do you know?

On the other hand, blindly pursuing internal fairness and sticking to a fixed annual salary adjustment ratio, the final result is likely to be bad money to drive out good money :

The best and most capable people are running because of better external opportunities and more lucrative salary.

What is left is the middle-class and even the incapable employees who can't find better opportunities in the talent market and have to stay; or they are left with fear and challenge, and rely too much on immersing themselves in the original comfortable environment. Staff.

I have seen many cases in which a core talent has left the company, directly leading to a direct business collapse or a direct performance collapse.

This impact on the business is immeasurable.

So to avoid this, most companies will design additional payroll cycles.

In addition to the annual salary adjustment at the beginning of each year, companies usually have at least one salary cycle, but this is not open to everyone, and you may not know that this cycle exists.

According to the 28th rule, 80% of the profits of enterprises are actually derived from 20% of core talents. Therefore, the salary adjustment should also give priority to core talents, especially the core talents with salary levels below the market average.

If you are included in this salary cycle at least once a year, or at least every two years, congratulations, the company still values ​​you. And your salary is also competitive in the market.

Of course, you can look for opportunities externally, but at the same time you will realize that the original company attaches great importance to you and integrates you into the core talents. You usually hesitate when you choose to change jobs.

If you are in a large and medium-sized foreign company (private enterprises are more chaotic, the boss’s decision-making method is simpler and more rude than the complicated process of foreign companies, and is not included in the discussion below), but it has not been included in this salary adjustment cycle, so Regret to tell you a cruel fact:

No matter what the boss/supervisor said , you are not a core talent in the management of the company .

The company knows that your salary is below market level

But I don't want to make complicated adjustments for you to break the original balance.

Even if you are gone, the outside can recruit almost the same talent.

It may be expensive and may take time to train, but there is no need to touch complex processes.

This is a simple and cruel fact:

You are not that important.

Since it is not so important, it is better to prepare for the recruitment season of Golden Three Silver and four, and see if it will be a little more important in other homes.

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