Salaries are below market price. Compensation is based on a "Total Compensation" concept which is Base + Cash Bonus = Total Comp. In practice this means that your Base is at or below market price with the promise of a cash bonus at year end. HR plays percentage games because Total Comp has caps for each level. Typically, Base grows at the expense of Bonus and total comp can stay flat for 3-5 years depending on market and on personal career trajectory. Although bumps typically happen following a promotion, this is not always the case.
Odds are that the Firm is re-aligning earning expectations. The Big Bonus lure is a thing of the past. Those who can survive the 17-30% total comp loss as a result of this years shift can only hope for a base bump to market price in 2012. But Total Comp will not recover and you will not get "back on track". If you're in it, write this and next few years off as a loss.
Culture at the Firm is still that of late 90s boom. People are expected to work hard/long hours. Now that rewards structure is diminished, there is a conflict between cultural expectations and actual rewards. This will take a few years to stabilize.
HR will not adjust base salaries mid year unless the exodus of talent is severe enough to cause internal hemorrhaging. Given churn in the market, odds of a favorable outcome for employees are low.
More on promotions. These are typically veiled in secrecy and management delivers an inconsistent message. Advice for incomers: discuss promotion process and your candidacy openly with your manager. If your manager will not have the conversation with you openly it means that she is not looking out for your career. Consider moving on. Further, promotions are retroactive. Increase in responsibilities, higher profile projects, management responsibilities typically occur 1 or 2 years before your manager will "put you up". HR defines a quota for promotions. You manager will compete against other managers for a spot. Criteria for a successful submission includes a demonstrable successful track record of delivery, mentorship, technical excellence, citizenship, etc. This is why promotions are typically a 1-3 year process from the moment that you and your manager agree that this is a year for you to be "put up". So, manage your own career and make sure you have a good manager who is taking care of you.
