March 8, 2012 conversation with an employee of IBM, who explained IBM’s pay schedule to me:

  • every year all employees are evaluated on a scale of 1 to 3
  • each employee receives a rating of 1 (highest), 2+, 2, or 3 (lowest)
  • IBM grades on a curve, so if you have a team of 10 employees, probably only 2 of them can be given 1s no matter how good they all are
  • she thought perhaps 5 of the 10 can receive a rating of 2+ or 2, which means 3 would have to be given ratings of 3
  • she was given a rating of 1 last year & received a raise of 3.5%
  • the amount of the raise given to a ‘1’ varies year to year according to how well the company has done
  • this year she was given a rating of 2+ and will probably receive a raise of 1%
  • a person who receives a rating of 3 receives no raise at all
  • she currently pays $300/month for health care benefits
  • IBM ended pensions in the 1990s

4 is not 2