In Finland we have salary bands for some jobs, but it's usually just the minimum. Some have a maximum, but there are always "personal bonuses" the employer can give on top of that. But these are usually "old" professions like teachers, nurses, factory workers.
For IT jobs I haven't seen an official salary band anywhere and there basically is no union mandated maximum and the minimum is mostly a suggestion.
We also get universally negotiated percentage raises every now and then, but it's like 1-2%. Personal raises are on top of that and can be a LOT more.
The maximum cap sounds just stupid. When you hit the limit, why would you do anything past the absolute minimum to stay at that level?
Conceptually unions are a democracy and people are selfish. Why should I let some other worker make 10x what I do when I can instead have them make 1x and spread out the other 9x around including to me?
This "spread it around" sounds like some trickle down ecodomics madness to me =)
If the company can't pay more to a high performer they surely won't just give thast money to the average folks. It'll just go to C-staff bonuses and conference trips to exotic countries.
(Provided that the average performers are above the union minimum already)
>Forcing it by spreading it around instead of paying him is more like socialism or communism.
THat's how a lot of companies in Austria apply wage increases per union mandates. Take a budget and spread it around so that workers bicker amongst themselves for not receiving what they think they deserve.
The likely two outcomes are -- 1) the upper limit of salary band for everyone in the same role is raised high enough or 2) the high performing person is leaving to a place that pays it with a band or without.
For IT jobs I haven't seen an official salary band anywhere and there basically is no union mandated maximum and the minimum is mostly a suggestion.
We also get universally negotiated percentage raises every now and then, but it's like 1-2%. Personal raises are on top of that and can be a LOT more.
The maximum cap sounds just stupid. When you hit the limit, why would you do anything past the absolute minimum to stay at that level?