The mysterious salary formula

manpreet Best Answer 2 years ago

I've been observing a trend in several European and American software companies when it comes to salary negotiations. Basically, HR says we have a "formula" to calculate the salary for our employees according to their years of experience and the interviewers' feedback. However, none of them ever let you see that formula. They just tell you that this is a fair way to calculate the salary for all employees so that people with the same experience have close salaries.

Is this true? Or is this just a tactic in negotiations to convince the applicant to accept the offer?

I personally found it difficult to ask for more because it comes off as someone who wants more than his "equal" peers. After all, the company is telling you that all employees in your level are treated equally which gives a false sense of confidence in the deal from my side.

Is there really a salary formula out there? And if so, how do you negotiate for more in that situation?

Update for duplicate votes The duplicate question states how to determine a reasonable salary. My question comes at a later stage of negotiation and aims at countering the situation when HR somewhat put you in a situation where asking for more implies that you are asking them to ignore the policy laid for salaries.

manpreet 2 years ago

It's often a complex and 'soft' formula which is a combination of : Pay grade, Seniority, and probability that the level of increase will lead to their best employees quitting for a better paid job.

So if they aren't giving you a good increase, they either think you're not a good employee or that they think you won't quit for a better paying job.