It should be everyone of a given title makes the highest amount anyone with that title was able to successfully negotiate because you've proven the market rate and it smooths over a lot of different biases naturally.
Trying to vaguely estimate the output of different employees while not actually paying them directly for that output is silly.
The algorithms are allegedly manipulating workers into working longer than they would otherwise need to, by withholding opportunities so that it takes longer for their daily goal to hit. That’s horrible if true!
- 1 employee may just be better/more valuable than the other for a variety of reasons. Promotion isn’t always an option or even the right call. So we have a range/band we compensate into. This allows raises based on merit and adjustment when needed.
-location matters. Cost of living is a thing. I’m not going to debate if it ought to be this way, just that it is.
- 1 employee may have had a offer from an competitor. We want to keep them but can’t use a promotion to do so for a variety of reasons. For instance, promotions cone with equity and that means approval from a pool that may not have anything easily available. But money is there and easier. So we offer more money to stay. The employee earned that by seeing what the market values them at. The other employee isn’t automatically granted a raise because of that.
-negotiation matters. The time you’re hired natters. Your pedigree matters. There’s a lot of reasons 2 employees will have different pay.