I used to fight with my long term employer about percentage based salary increases. My feeling is that when percentage based salary increases took over (and there was a time when my salary increase world was dollar based), when percentages took over, income disparity skyrocketed.
Employer argued that to be fair and avoid lawsuits, there had to be an across-the-board equal percentage increase. But 3% of a $200,000 salary is not the same as 3% of a $50,000 salary. And over time that disparity worsens.
So 3% a year for 3 years with basic salaries shows impact on the difference between a $50,000 salary and a $100,000 salary. In year 1, the salaries are $50,000 apart. By year 3 the salaries are $54,636 apart. So the higher level salaries grow more than the lower level salaries. This is not fair.
This used to make me crazy when two employees were hired in within weeks of each other around salary deadlines. One would get the raise first year, and the other wouldn't. By 3 years, two employees with almost the same years experience would have a significant pay differential that HR would not address.
@TheresaVermont I worked for a city in SoCal that annually gave 8% raises to one-third of the employees, 5% to another third, and 2% to the final third.
Management made sure that all the 8% raises went to management.
You had to be a real slacker to get 2%, so it was pretty much guaranteed I'd get 5%.
I didn't bother working OT or weekends because it was clear that, no matter what I did, I was getting 5%.