I work in HR and can tell you that the company changed its compensation philosophy in terms of where it’s trying to position itself in the market. Market studies showed a much higher increase than anyone received (its been two years of above average inflation).
Company is now aiming to pay most employees at the “lower end” of the middle third of salary. Essentially 33rd percentile. The goal of paying at the 33rd also takes into account pension.
Previously, the company attempted to pay all employees at or above the middle of the market. Lower ranked employees would generally still be paid market salary.
No longer. In fact, the goal for the average employee is to pay less than the prevailing wage. This will continue until headcount is in the range of 42,000 to 45,000 total.
Attrition among high potential employees will be avoided by generous RSU awards. Bottom line: Expect below inflation raises for the vast majority of employees for at least the next 5 years.