They also listen to "consultants". We just had a compensation analysis / review by an outside consultant. My job is done by a half dozen employees in the state if that many. I saw the data bases they supposedly used. Then they set up a 7 step range. I was put 1 step above my current salary. Now you need to know I've had this position twice, for a total of 29 years. I will retire probably in 3 years. So I asked what do I have to do to get to the top. "Set goals" was the answer based on the consultant's report. Really? I'm the kind of employee that see's that something needs to be changed or modified, I just do it. I don't wait for review time to "set a goal". I've made major organizational and operational changes over the years, all with management's encouragement and approval.
My boss only would tell me I need to set goals. So when I received my 45 year service award, the chairman of the board commented on how great an achievement it was. It told him it's been a good place to work, no real complaints except one. I told him the wage survey was a good thing but being 1 step above average was a slap in the face. Well the manager found out and told my boss that I shouldn't have done that. My comment back was neither you or the manager addressed my complaint so while I might not ever get a bump up, I hope the other 1/2 dozen or some in my situation might get bumped.
The sad situation is the 1/2 dozen or so are under compensated by $10 -15,000 / year. Total extra wages is probably about $100,000 / year. They are are all senior level late 50's early 60's and the consultant knows we are not leaving. But it sends a poor message to the up and coming employees and they just might leave. We're a $60 M / year operation and they are thinking about borrowing money to build a new $40 M building because we can, not because we need a new building. So it's not the money, it's the consultant. (Plus the company labor attorney would screw his own mother. He's just evil. I've been on the company side with him in labor cases and I was embarrassed to be in the room with him. He's been caught changing the labor agreement and then send it to the union hoping they wouldn't read it word for word before they signed it. Just evil)
I've always said, it's the employees that make the place run well, good supervisors managing good employees but the employees seem to be forgotten when the revenue goes up. On the positive side, no one got laid off during the lost decade here in MI. We didn't replace retired or employees that left but we all stayed fully employed. We didn't get a pay increase for 7 years and increases since have been minimal but they kept our heath benefits pretty much unchanged which was huge and most appreciate it.