Maxed Salary - Options?

Looking for input on how companies handle employees that have reached or exceed the salary cap for their job.  We are a FL company with less than 500 employees but many long term employees.   <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

No increases until you change jobs? 

Small (1%) increase every other year if merited? 

Bonus amount in lieu of annual wage increase?



  • 5 Comments sorted by Votes Date Added
  • I would suggest bonus amount based on profitability of the company---so those long term employees that continue to excel in their jobs remain inspired to continue, and this also allows for pay increases without the committment of a base salary increase.  Don't forget to review salary ranges every couple of years, these ranges can become outdated and warrant a salary increase.

  • Thank you. We do evaluate salary ranges every 2 years.  A majority of the jobs are in retail sales, non-commissioned, so the job doesn't evolve much nor does the pay scale.  We have several long term employees as in 10, 15, 20 year associates and do want them to remain inspired but cannot allow the payroll to climb simply based on longevity alone.  Bonus amounts seem like the method we will consider.  TY

  • We started using a "Review Pay" bonus in lieu of increase for those "maxed out" employees earlier this year-so far only one employee was affected, but we may have a couple more to contend with before years end.  No negative feedback so far!
  • Like you, we are a company of less than 500 (less than 200, actually), and we have quite a few employees who have long tenure in their jobs and are not interested in taking on a new role.  To address this when they hit their pay range maximum, we do what we call a lump sum merit award.  The employee's base pay doesn't change, but they get a lump sum bonus equivalent to what their pay increase would have been (so if they are at $15 an hour and they are maxed out, and their performance rating indicates they should receive a 3% increase, they will receive a lump sum of $936).  Employees who are at "meets expectations" can get this up to two years in a row (after that, they don't get anything unless they change jobs or the range moves).  Employees who are considered "above expectations" or higher can receive this type of lump sum merit payment indefinitely. 
  • jvoight, that's very similar to how our maxed-out compensation has been structured, however I don't see us limiting employees to two years.  Some of them have no where to go as far as promotions and job change, so we can't hold that against them. 
Sign In or Register to comment.