Phillips 66 is implementing a new policy cost of living adjustment that is targeting high performers… good luck with retention
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I guess only way to get to an upper end of sgl is to be in the same sgl for a decade.
Keep an eye on salary levels at the ELT (check out the proxy materials for the shareholder meeting under Executive Compensation). I wonder if the same rules apply to all those folks…not. That’s where we need some attrition.
I had someone from HR explain this to me today. There is no Merit increase. There is no COLA increase. There is only comparison to “peers” and the goal is to put everyone between 95 and 100% of midpoint of their SGL Your SGL is basically tied to the years of service. They move the SGL scale up 4.5% and if you’re above 100% of midpoint, you get a lower than 4.5% increase to move you down the scale toward 100% and the opposite is true if you’re below. If there is no change in your peers, there will be no change in your salary. She could not explain how an employee can move to the higher end of the SGL, because it’s just not possible with this process. The only way to get a higher salary is to move to the next SGL aka years of service and semi-forced rankings with the same percentage of 1’s and 2’s.
This is the ultimate in participation trophies/ socialism experiments.
My only guess to the logic behind this process is that attrition without severance payments is the ultimate goal/metric.
Every other company in the US including Walmart and McDonald’s award employees based on merit.
It's remarkable how they keep doing EXACTLY the wrong thing for attrition every time...
Gonna lose more experience over this. Sure, it may keep a baby engineer that just hired on for another year or two, but god is this a garbage program
What? No. Merit based on performance no longer exists. It's now a COLA market adjustment.
So its more for top performers cost of living than everyone else…..
It makes absolutely no sense except to pinch pennies. Horrible decision.
If true, that will be very concerning for retention.
Yeah….1s and 2s get the same merit as 3s. So I guess the only upside is a few more grand on VCIP. I bet the Mensa crew in HR and fake Sean Connery CFO think it’s a smashing idea!