The company I’m with now makes promotions without salary increases. The salary increase comes in the next review cycle when you’ve proven that you can do the job. It seems very unusual to me, has anyone else seen this?
Once you get the raise at the review cycle, is this also back paid for the time you were under paid for the role ?
I would've much preferred if they had promoted ppl and done salary increases later.
If you are a level N Foo and doing well (as determined by doing some amount of level N+1 work), you might be earning the top of the level N Foo band. If that’s above the bottom of the N+1 band, you might be making the same as or more than the most recent N+1 hire.
The day the company decides that your level “rounds” from N to N+1, you might already be being paid the exact correct amount.
Design of pay scales and how they interact with promotion thresholds is complex enough that many fair systems can evolve. Most systems have evolved to slightly underpay the “almost N+1” employees for a period of time, leading to the expectation that promotion come with an immediate salary bump (and often companies do that to make the promotions “feel bigger”), so maybe the problem is promotions under that system should come with back pay rather than the situation described here being the one where back pay is owed.