Comment by aikinai
5 months ago
If they’re all shooting for the 95th percentile and have up-to-date data then you certainly won’t have fixing; rather you’ll get insanely rapid wage inflation!
5 months ago
If they’re all shooting for the 95th percentile and have up-to-date data then you certainly won’t have fixing; rather you’ll get insanely rapid wage inflation!
There's also a more cynical explanation.
It's possible the purpose of wage benchmarking companies is to allow bosses to say they pay the 95th percentile - which is useful to be able to say, when someone at an all-hands Q&A asks about raises and bonuses.
Then the benchmarking company simply has to define 'comparable roles' broadly enough to give the customer the result they want.
Not necessarily, if everyone's wages (except 5%) were set at minimum wage then the 95th percentile would be the minimum wage.
Yeah, it seems more like they'd all shoot for 45th percentile and say "We pay competitive wages" instead, slowly driving the wages down.
That's what my employer does. The head of our HR team got in front of the entire company and said that they aim for 50th percentile for everyone in every pay band. It instantly made me want to job hop, tempered only by the million things I have going on in my personal life that have a better expected value than a 5 or 10k pay bump.
That's... hilarious. We all know they are thinking that but to say it loudly and proudly to the employees is a self own on a level that makes me Cheshire Cat.
Which is... exactly what the software industry has seen over the past 30 years?