4 ms·

Don't companies with that size have budget-salaries which are equal for all employees on the same rank / position / experience level? I doubt that BMW has an e

Don't companies with that size have budget-salaries which are equal for all employees on the same rank / position / experience level? I doubt that BMW has an engineer that earns more than his / her colleague at the same position.

maxxxxx 10y ago
Usually the pay for a job is within a range. This range can be quite large so you will have people with the same job making different money.
- germanier 10y ago
  Let's take the BMW example. Most of their engineers in Germany are paid according to a collective agreement where the salary is determined by looking at a table based on your actual position, your background, and seniority. There is an additional salary based on some specified performance metrics but that usually accounts for a difference of 5% maximum. Only few engineers in leading position and with larger responsibilty are paid based on an individually negotiated contract.
  - maxxxxx 10y ago
    I have worked at German companies with union pay (IG Metall, same as BMW). You are right that there is a table, but where you are on the table is still very negotiable. Maybe people think this can't be negotiated but in reality it is. I got bumped up several levels after I complained that my colleagues were much higher while doing the same work.
SteveNuts 10y ago
At one mega-corp I worked at we had job levels (say 20-35 or so) each with a corresponding salary range. All they'd do was promote you to the next level and give you a salary in the next range.
PeterisP 10y ago
Perhaps that's the appropriate way to discriminate pay? If for whatever reason one engineer should earn more than the other, then make it explicit in the labeling. Bob is Engineer, and Joe is Engineer+; it's clear to everyone that Joe is earning more, and if Bob feels underpaid then the explanation for the salary difference is explicit in that he's not (for whatever practical reasons) doing the work/quality/quantity/whatever of an Engineer+.

maxxxxx 10y ago

Usually the pay for a job is within a range. This range can be quite large so you will have people with the same job making different money.

germanier 10y ago
Let's take the BMW example. Most of their engineers in Germany are paid according to a collective agreement where the salary is determined by looking at a table based on your actual position, your background, and seniority. There is an additional salary based on some specified performance metrics but that usually accounts for a difference of 5% maximum. Only few engineers in leading position and with larger responsibilty are paid based on an individually negotiated contract.
- maxxxxx 10y ago
  I have worked at German companies with union pay (IG Metall, same as BMW). You are right that there is a table, but where you are on the table is still very negotiable. Maybe people think this can't be negotiated but in reality it is. I got bumped up several levels after I complained that my colleagues were much higher while doing the same work.

SteveNuts 10y ago

At one mega-corp I worked at we had job levels (say 20-35 or so) each with a corresponding salary range. All they'd do was promote you to the next level and give you a salary in the next range.

PeterisP 10y ago

Perhaps that's the appropriate way to discriminate pay? If for whatever reason one engineer should earn more than the other, then make it explicit in the labeling. Bob is Engineer, and Joe is Engineer+; it's clear to everyone that Joe is earning more, and if Bob feels underpaid then the explanation for the salary difference is explicit in that he's not (for whatever practical reasons) doing the work/quality/quantity/whatever of an Engineer+.