The general assumption is that professionals get promotions or pay hikes due to their respective performances. This is the most convenient explanation, yet not always accurate. Countless examples may be studied of how two similar performances for people from similar backgrounds, led to a different impact on their packages. A business research assignment carried out by experts from the Stanford Graduate School of Business, sought to study this phenomenon. The top S&P rated firms were studied, but special focus was put on conglomerates as they have varied businesses. Even ethnicity did not always matter, as people from the same community and similar socio-economic profile also faced varying treatment. A major observation of this study was that, personal anecdotes mattered a lot when the superior officer knew the appraisee.

Source: https://www.gsb.stanford.edu/insights/why-you-really-got-raise?utm_source=TWITTER&utm_medium=Social&utm_campaign=Insights&Date=20171114&linkId=44730204

Uploaded Date:21 November 2017