"The biggest problem I found with promotions is that people wanted one because they thought they were doing their current job well. That isn't promotion, that's calibration, and doing well in calibration certainly opens up good raise / bonus options. Promotion is something different -- it's interviewing for a brand new job, by proving you're already doing that job. Whether or not that's fair is debatable, but the model does make a lot of sense to me."

Thanks for articulating this distinction so clearly; it's a simple enough idea, but it seems to elude so many.