I've found my raises to be really good (base >10% annually, total comp closer to 25% annually). So the impact of my initial offer would have been not super impactful. Certainly it mattered (10s of thousands of dollars at the start of one's career is valuable), but it hasn't affected my raises positively or negatively, so the overall impact is limited.
As for raises, that's almost right. Given two people performing equally, one who makes more than the other, the lower paid one will get larger raises, until the salaries are approximately the same. If one performs better, they'll get larger merit increases.
This is all subject to the assumptions that the system is fair at rating performance, which I try to ignore when explaining the mechanics to people.
As for raises, that's almost right. Given two people performing equally, one who makes more than the other, the lower paid one will get larger raises, until the salaries are approximately the same. If one performs better, they'll get larger merit increases.
This is all subject to the assumptions that the system is fair at rating performance, which I try to ignore when explaining the mechanics to people.