It looks like merit this year will be low, maybe around 0-3%. Some people with 3s might even get less than 1% based on a few things. EPR is smaller too, but it’s decided by Director’s choice. No explanation yet about why the pools are so low.
This seems to go against Todd and Vijay’s recent talk about record profits and rewarding workers. Another year, another letdown.
The company set aside money for an average 2.6% raise for employees last year. Despite big profits this year, they’re planning for only a 2.8%.
This means your manager gets that 2.8% pool and has to spread it between underperformers and top workers.
So, even if you give no raise to poor performers and around 2% to the average people, the rockstars are left with under 4%—around 3-3.5%.
And bonuses? People will be in for a surprise. I’m not sure the money set aside even qualifies as a ‘bonus.’
So the company cut its workforce by 30%, removed 20% profit sharing, and zeroed out raises and bonuses.
GEICO is spending about $1.8B less on compensation this year than two years ago, despite record profits.
Time to look for new options, folks. The company isn’t a place to build a career anymore. The annual turnover is nearly 80%.
@Fionn
Thanks for adding more details. The writing’s on the wall that this is the new business model. So much for trying to build a competitive tech company.
@Fionn
If this is true, we need to do something about it.
No one should be shocked. This company has been going downhill since TC and his team took over. Why would this year be any different?
Gale said:
No one should be shocked. This company has been going downhill since TC and his team took over. Why would this year be any different?
People were hoping for better, but I agree, no one should be shocked.
If it’s only 1%, that’s crazy, and 3% for the top performers is insulting.
It’s probably smaller because last year only 4s and 5s got them. They were pretty good for those who got them. This year they’re including 3s. It’s not a good reason, and the company should be giving bigger raises, but that’s probably the explanation.
@Val
3s in some departments last year got them too.
Cleo said:
@Val
3s in some departments last year got them too.
I got a 0.25 an hour raise in sales with a 3 rating.
What’s the proof?
Dakotah said:
What’s the proof?
I can’t share much because of privacy, but you’ll see in 2-3 weeks when they release the information.
Dakotah said:
What’s the proof?
I can’t share much because of privacy, but you’ll see in 2-3 weeks when they release the information.
Is this within IT? I feel like we’ve been increasing IT salaries, and the ranges are more competitive, but it seems like employees don’t have an advantage right now, like they did a few years ago.
Anything is better than nothing. I worked at Oracle for 3 years without a raise. At GEICO, I’ve gotten something every year for the past 8 years. Yes, some years it’s been lower, like 2%, but it’s something.
@Ren
You’ve got Stockholm syndrome. Look it up.