Does my intuition about interpreting raises seem right to you? Let's say that inflation is X% CAGR and that we are discussing a decent employee that is producing more value each year as they get better at their job.
Yearly CAGR raises:
- <X: company either cannot or does not value you. This is a warning signal.
- =X: Not necessarily a warning signal, but could be interpreted as such because the company is not rewarding you for the extra value you are creating each year as you become better at your job
- =X+(1 to 2)%: this should be the normal operating range for good employees
- =X+(2 to 4)%: company wants to retain you and is demonstrating their commitment to compensate you for your extra yearly value that you are generating.
- =X+(>5)%: company is really rewarding you and really wants to retain you.