I found significant pay discrepancies between people on my team at the same level. More than 10%. Those who have been at the firm longer lag more even after promotions. I discovered that I was on the upper end of the pay band. And now, surprise- I was axed.
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@vgr+1pmHQLyG The "market rate" people usually refer to is an average. Each person's market rate is different and is based on how well they sell themselves, perform their job, and how much they demand to be paid. If a person is fine being paid half what their team is paid, then that is that person's market rate for the job they are doing, unfortunately.
One more reason to never accept a promotion and/or pay raise. Merit increase - okay (since everyone gets that) - but not a raise.
I call it the Loyalty Penalty m, not discount. It’s ridiculous. If they hire someone new at a certain pay rate for the same level and team and similar job functions, they should upgrade existing employee pay. Because that is the market rate.
“Those who have been at the firm longer lag more even after promotions.“
It’s called the Schwab Loyalty Discount.