the difference is that in companies without the formal process, you have to ask for your promotion/raise. Seems a lot of engineers aren't comfortable with that

the difference is that in companies without the formal process, you have to ask for your promotion/raise. Seems a lot of engineers aren't comfortable with that. I'd just like to say that patio11 is 100% correct about profit vs cost centers. Working at such a company in a profit center let my double my salary after 6 months and again after another 6 months. That would never happen in a company with a formalized review process.