I am slightly above my JG Compa-Ratio this year for the first time. Will I still get a raise this year if I am rated a 2 for performance?
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Scale changed to 1-3 a few years ago. 2 is average. One is PIP and 3 is above.
If you are above your comp ratio, you may see a small market increase but not a comp ratio band adjustment unless your band was also had an increase. The base 2% goes to everyone.
The most I’ve ever seen an employee receive during yearly increase cycle was around 8-9% (2% annual, 3.X% comp ratio and 2.X% market adjustment of band).
Once that is applied to total comp, a portion is reserved to AIP based on employees job grade. The gambling portion of the salary….
I’ve never hedged a 20k bet but certainly know what it feels like as an employee. At least it isn’t an all or nothing kind of bet. Between 3M performance and Uncle Sam (60% in taxes, 401k deductions) it often feels like a lost bet.
I thought 3M has do away with the 1,2,3,4,5 scoring. Why are you still rated a "2"?
Companies have to assess their own financial situation before worrying about keeping up with the jones to compete for talent. Everything I've seen for Financials, project earnings, etc. Tells me just hope you get 2, maybe up to 3. The competitors will probably be giving more like 4 to 5.
In a way, 3M not only has to manage cash flow very closely but they probably don't mind more people leaving for greener financial pastures. Saves on severance pay.
Not much positive to look upon here.
The various job grades have had different shifts in pay, for example T4 and above has has 3% shift or more in a few of the years. Last year the boss told me that likely the shift would be higher this year but now with the state of this company it feels like they will have trouble making payroll. I think it’s safe to say we will all be going backwards in spending power as we did last year.
You’ll get your 2% and you’ll like it. Mike needs a new yacht.
What’s a merit increase?
During lean years for the company's profits, 3M would explain away a 2 percent raise by saying "it's only for a year!" Even though the market that competed for the same labor was paying 3 or 4 percent.
3M leadership would then say "hey, remember what a great deal your GESPP" vs. Our competitors. You'll more than make it up for it, was the declaration.
Anyone who isn't at the highest ranking can expect maybe 2.5 or 3 if Santa Claus dropped a billion in Benjamin's under the 220 bldg Christmas tree, and earmarked it for the employees. I'm sure Mike and Monish would gladly share that windfall.
Don't put a large down payment on something like an inground swimming pool!
You will get something for the market rate adjustment but nothing for “bumping you to the middle” or a performance adder. Let’s hope our market reference companies are paying more than 2%z
In the US the annual increases are based on the '2023' comp ratio, not the '2022'. Another way to say that is the ratio that counts is your 2022 salary divided by 2023 MRP.
So if you are only a few percent over the MRP in 2022, with the shifts in MRP the odds are pretty good you will be at/below MRP and get a full raise. They also bumped up the comp ratio that gets full increase up to about 110% MRP if my memory serves (need to check last year's supervisor guide).
All the niceties out of the way. US inflation is running 7 to 9% depending on how one counts. The odds of annual increases even coming close to inflation is zero. I haven't seen the annual increase guidance yet, but I'm still betting on 2% midpoint to keep the 6-year streak alive.
Fair question! Who knows what the direction will be this year. Nothing surprises me anymore! Annual Merit Increase = Annual Merit Insult. Just sayin'.
Probably only 1 percent. Your boss has some input but may have to rob one of his Peter's to pay Paul.
Average good price increase 8.8%. you will get the 2%.