Forgive me if I'm misunderstanding, but doesn't this mean that you don't give your employees any raise in terms of real dollars?

Even in the same role YoY, don't they become more knowledgable, experienced, capable? Take on new responsibilities? Don't they deserve to share in that added value to the company?

Yes. But I (and most of the people who work here) tend to agree: the capital concept of infinite growth is fundamentally broken. We're a small company, we have a flat salary policy (everyone, including the owners, earns the same wage). The salary is enough; it's market competitive without going overboard. We have a profit share so when the team does well, we all do well. We aim to raise our billable rates and our salaries in line with inflation.

It's a simple, sustainable model. We don't grow, but we don't shrink. We exist. That's enough.

I'm sure this 6% raise is just the baseline for everyone. If you are promoted or stand out amongst your peers, then a larger raise is in store for you.

Perhaps knowledgeable, experienced, capable - but not necessarily more valuable.

The value is very much based on what a person does, where they do it, who they do it for, and when they do it.

All those other factors will usually outweigh modest personal growth.

Lame example: being a better typewriter repair person today, working in a barbershop. No matter how well that person does their job, they may not add more value this year than last.

"Pegged" does not mean "Equal To"