According to Danny Chrichton of TechCrunch medium and large size companies are opting to pay all employees with the same amount of experience and education the same salary.
Why, for several reasons, it turns out. “Lockstep Salaries” discourages discrimination against women, it’s a great help to those who aren’t great negotiators. It also fosters transparency in the organization, makes it easier to have everyone working toward common goals (the satisfaction of the internal or external customers) and fixed salary points pushes people to perform up to the next level.
What does all this mean to you sitting across from the HR representative? Well, you have to think of what you really want in terms of your next position. Were you moving for dollars, stimulating job content and more challenging technical environment or something else? Maybe, this will still make sense to you without the big salary bump you thought you were going to get.
As an IT staffing firm, IMS, has seen this practice becoming more common among our established business clients. The results are mixed. Sometimes it’s harder to attract technical talent when there is a fixed ceiling on starting salary and they are aware they will be paid commensurate with their peers.
Others feel the stability and technical challenge of the organization, plus the mentoring they will receive, outweigh the inability to negotiate a higher salary.