This year’s Cisco focal budget for merit is one of the worst in recent memory.
Employees have been waiting a full year for focal, so splitting the pool into two cycles doesn’t make sense as a retention strategy. The budget is so thin that if a manager gives even one promotion, 3–4 others on the team will miss out on any merit increase due to MRR rules.
That means leaders are forced into a lose-lose: either keep a few “critical” people happy and demotivate everyone else, or spread raises so thin no one feels recognized. Either way, morale takes the hit.
The bigger issue is pay falling behind. Over the last four years, Cisco hasn’t kept up with inflation, and employee purchasing power is down ~25%. Meanwhile, Cisco already underpays compared to other AI/innovation competitors, which makes retaining talent even harder.
Merit should be a basic hygiene factor, but this budget feels like a slap in the face to employees being asked to move faster, take risks, and innovate. Hard to build a bold culture when people feel underpaid and undervalued.