It has been over 10 years since I was part of a large organization that had a promotion system. Early on, I believe promotions and raises were tied to a combination of years of service, performance and opinion of your supervisor. Performance evaluations were replaced by (S.M.A.R.T) Performance agreements as H.R. began making changes to equity-based performance award systems along with job descriptions and titles matching one's education and/or experience. It was move from a unique title system to one that aligned with the job titling convention more commonly used by the rest of the country. I am sure this was to eliminate HR's challenges of equating titles when hiring individuals with experience.
I may the order reversed, but I believe it was a numbering system when I started (Engr. 1,2, 3, etc.), that evolved to a combination & numbering system (Engr II, Senior Engr., Project, Sr. Project Engr.). Each level had a salary range based on discipline. For example, Engr. 1 for civil may have a range from $22k to $25k, while that for the Engr 1 in electrical may be $43k to $46k.
One received performance merit increases based on performance evaluations. Once one's salary exceeded the maximum in that level's range, the title shifted to match the pay range of that title. There are often a standard number of years preferred by some for Engineers to be at a certain level before being promoted. Given the connection of title and pay, there is the dynamic of time vs. level of performance. Some may have used the "time standard" as a means of justifying a mediocre performance evaluation.
That is my experience outside of management. I do not think I can share any of that process from my time in management out of respect for the company and possibly a confidentiality agreement I signed upon leaving (I need to find and read). Of course, that could lead to a different discussion about merit increases, raises, and how percentages are determined. I used to argue in leadership training that merit increases were for performing above and beyond one's required duties. People are hired to do a good job. No one is paid to perform poorly. The reward for doing a good job is keeping your job. The reward for exceling at one's job was a merit increase or bonus. I supported cost-of-living increases, but merit increases for everyone reduced the reward for those that excel. Low percentage merit increases were moral killers (at least for those requiring financial motivation).
------------------------------
James Williams P.E., M.ASCE
Principal/Owner
POA&M Structural Engineering, PLC
Yorktown, VA
------------------------------