Getting paid less than everyone else?

Question

At my job, they gave an annual increase plus a merit raise to everyone with the same job title. However, I did not recieve the annual raise nor the merit raise, due to a "NI" (Needs Improvement) in performance.
Are they allowed to not give me the annual increase?
Anyone (most) who did not recieve an NI, got bumped up in pay, and also recieved a merit raise on top of that.
I don't see how they can not give you the annual increase based upon performance, when they can hire someone not knowing their performance at the same rate that I should be making.

Answer 1

It sounds fair. If you need to improve you are obviously not doing the job as well as people who don't have a needs improvement. Why should you get payed as much as somebody who works harder or more efficiently than you. It is like salesmen working for commission only. The good salesman could make a lot of money.The one that needs improvement could make nothing.

Answer 2

At least in the U.S., companies have pretty free reign when it comes to what they can/cannot do in terms of paying people. Raises and other incentives are also pretty much determined by the employer (as long as they are legal, ethical, etc.). So there is no real obligation to give you a raise.

The next question really is should they give you anything? I think, if you were in their shoes, you would say there would be no raise coming. Raises are supposed to motivate people for giving good performance (i.e. they are paying you for what you have accomplished not for what you might do next year) as a way to keep employees around. Even cost of living adjustments are offfered as incentives (they don't have to give those either) to retain people who might otherwise go elsewhere.

Needs improvement means you did not meet expectations and so why would they give you a raise. The last thing they want to do is say what happened was okay. All they owe you (ethically not legally) is a clear understanding of what did not go well and what has to go better next year. That should position you to get that raise next year.

Answer 3

They can pay you whatever you agree to work for as long as it meets minimum wage laws and any contractual numbers. If you aren't willing to work for that amount, you have the right to look for another job unless you have a signed contract that you'll work for them for a certain period of time.

There is no legal requirement to give raises, or to pay everyone the same who has the same job title. It's very common, and reasonable, for raises to depend on performance ratings.

Get rid of that NI by improving in that area, and maybe next cycle you'll get a raise.

Answer 4

Your company doesn't 'have' to give you a raise unless it is in your contract. Many companies have a policy of giving an employee prior notice that they are set on a path not to recieve their raise unless they change their current behavior/

Answer 5

I agree with the company....your future lies in pickin up cig. butts in a No Smoking area

Answer 6

yes, because you didn't do your job. Would you rather be fired!