Some of you are already preparing for the salary and performance review discussions at the end of the year. (Or the beginning of next year.) Good for you, for preparing this early. You have a chance of doing a great job.
However, there are many problems with performance reviews and salary discussions at any time. They are not fair. Too often, they are equal. But equal does not mean fair.
In my very first job, I got an outstanding performance review. I received the maximum raise, 15% (or whatever number it was). However, I was still paid less than my peers. Why? The managers had offered the men more money. These men started virtually at the same time I did. I had a degree in Computer Science (a rarity back in 1977). They had degrees in math or physics. I had experience writing in assembler. They did not.
I received the maximum percentage raise. They did not. So my managers saw something more valuable in my work they did not see in my peers.
Yet, because we did not start off equally with our base pay, even after a year, they made more money than I did.
Was that fair? Absolutely not. Fairness decrees we would end up with very similar salaries. Maybe not exactly the same, but when you’re talking about $15,000 a year, there’s an almost 7% difference between my $15k salary and their $16k salary.
That’s big. And unfair.
Yet, HR and my manager told me they treated me equally.
Assessing Equal vs. Fair
That company had no idea what equality really was. (Did I mention this was 1978?) Since they treated me equally, but not fairly, I soon left. And yes, I got a monster of a raise when I left because my new company did treat me fairly.
Every employee faces this problem: will the company treat you fairly or equally when it comes to performance reviews and raises? Too few companies treat people fairly. Instead, they think “equal” is the most appropriate treatment. Too often, “equal” leaves some people in the dust.
Managers: start the process with HR now, to assess your salary levels and discuss what fair compensation is.
Employees: start the review process with your managers, so they know your contributions over the course of a full year. (Too many managers suffer from recency bias, especially if they do not conduct weekly or biweekly one-on-ones.)
There is no excuse for treating people equally and unfairly. It does not matter your position in the organization. Treat people fairly, which might not be equally.
To read more about this, read Practical Ways to Lead an Innovative Organization. Fairness makes it possible for people to succeed even more. “Equality” often does not.