Contribution or Institution!!
Kabir is working with Flint Networks and is an excellent performer, recognized for his leadership skills, cross-functional initiatives, and contribution. He is a graduate by education. Sandhya is from IIM and an average performer. Kabir and Sandhya both handle similar roles and revenue kitty.
Flint recruits 10% MBA’s from premium institutes and 90% non-MBA’s every year. The joining package is different basis market dynamics. Each batch is trained and has few stars who grow exponentially. Flint is very intentional about keeping the “MBA’s” salaries in the 90th percentile of the market.
Kabir and Sandhya have been with Flint for over 10 years and the gap between their salaries has continued to grow exponentially. This year Kabir brought up this issue with Management and he was told – “Sandhya will get this package in the market due to her educational excellence so we have to maintain her CTC”
What is to be done?
Kabir is at the 90th percentile of the market basis his role and profile yet his salary is 40% lower than Sandhya
Paying them the same would mean overpaying Kabir basis market – compensation strategy
Paying Kabir less when he is contributing more?