3. Production has a structural pay-competitiveness gap

Three reinforcing patterns explain why Production loses people.

Pay inverts with tenure

Long-tenured employees earn less than newer hires because their pay is anchored to what Company X offered them years ago, plus modest annual raises — and those raises haven't kept up with how much the external market now pays for the same role.

Pay and performance are essentially decoupled

Performers who are "Exceeding Expectations" earn a median of $60,724 vs. $59,365 for those that "Fully Meet Expectations" — only a ~2% premium. Interestingly, those who "Need Improvement" earn a median of $60,270 — essentially the same as top performers, and more than those who "Fully Meet Expectations".

Stayers earn more than leavers at the same tenure

Production employees who stay earn 4% more than employees who voluntary leave at 2–5 years of tenure, and 12.7% more at 5–10 years (n=72 stayers vs 20 leavers).