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That may not be the full story.

I also get a pool to allocate for "regular" annual raises between the people on my team.

There's a different, bigger pool that can get pulled from if there's a case of a mismatch with market rate (e.g. we'd hire someone new into that position for considerably more than the person currently in it is making).

There's also a pool (possibly the same pool as market adjustments) that can come into play for retention/negotiation if an employee asks for a raise. But at my employer, at least, the point of proactively doing the second is to hopefully prevent this one from being needed - once you're in a "thinking about leaving" situation you're more likely to actually leave.



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