Another biggie is a failure to pay market rates for existing employees.
If you stay at a company, they will give you some fixed pay increase, perhaps tied to your annual review. After a few years, your pay could get seriously out of whack with the market.
Many companies have a policy of only fixing such problems after the employee gets an external offer. Of course, by the time the employee gets the external offer, they are pissed at their current employer about being underpaid, so they leave.
tl;dr; pay your employees market rates, or plan for turnover of employees experienced in your own practices.
Oh boy that's a biggie here. Last year the raise given for "exceeds" was around 1% - 3%. For comparison, inflation is running at about 5% in the UK, so effectively if you work as hard as you can, you still get a pay cut.
Currently, I'm interviewing new hires who will be roughly a paygrade below me. They will start with a 10% higher salary than my current.
Needless to say, I'm not a happy bunny. Sadly, there aren't that many software companies here, so I can't easily move jobs.
> If you stay at a company, they will give you some fixed pay increase, perhaps tied to your annual review. After a few years, your pay could get seriously out of whack with the market.
This. In my experience, especially applies to H1-B employees or any employees who are perceived to be unlikely to leave. One downside is that, lowering the average salary of all employees makes hiring new employees (at current market rates) difficult. Thus begins (or continues) the downward spiral.
If you stay at a company, they will give you some fixed pay increase, perhaps tied to your annual review. After a few years, your pay could get seriously out of whack with the market.
Many companies have a policy of only fixing such problems after the employee gets an external offer. Of course, by the time the employee gets the external offer, they are pissed at their current employer about being underpaid, so they leave.
tl;dr; pay your employees market rates, or plan for turnover of employees experienced in your own practices.