#CorporateMath #SalaryDiscrepancy #EmployeeRetention
🤔 “I don’t get Corporations Math.”
So, I was diligently working away at my job, going above and beyond on projects, and keeping everyone happy. But when I found out my coworker was making a whopping 24K more than me for doing the same amount of work, I knew something wasn’t adding up. 💸
I mustered up the courage to ask for a raise, after waiting patiently for evaluations and receiving praise for my hard work. But alas, I was told no. Talk about a letdown. 😞
Fast forward to now – I landed a new job where I’m making the salary I asked for in my previous role, but with way less stress and demands. It got me thinking – why do companies prefer paying new hires more than keeping experienced employees satisfied and motivated? 🤷♂️
I believe one solution could be for companies to prioritize employee retention by offering competitive salaries and recognizing the value of experienced staff. After all, a happy employee is a productive employee. What do you think? Let’s discuss! 🌟
Because when they’re looking at justifying a new hire salary, they’re looking at the current market rate for that role.
When they’re looking at increasing your salary, they’re looking at your pay history and how significant an increase that is.
It’s not the math part, it’s the justification part. “New hires in this role cost X amount” vs “This employee feels his work is worth a 40% increase in salary”.
It’s still dumb, but that’s the thought process that leads to those dumb decisions.
The Peter Principle explains who is in charge of management everywhere.
There’s another fact… New hires come with brand new batteries and energized, while current talents, after some years, might work with a little less motivation due to progressive wear of the same job routine.
I think it’s important to point out that many companies do recognize the value of their retained and seasoned staff and adjust salaries to keep up with the market.
Many greatly prefer to promote from within.
And, at any company, the fastest path to significant raises is promotion.
If you’re stuck in the same job getting 2-5 percent merit raises for 5 or 10 years, you’re not actually growing.
If it’s impossible to move up, you should be moving on.
“we don’t negotiate with terrorists” is a big part of it. If bitching about making less than someone else gets anyone a raise, all the cost savings that recruiters generated by low balling people will disappear. Companies will lose thousands, if not millions each year due to that alone. Replacing you is easier than increasing everyone else’s salary.
Just go elsewhere. Unless you are getting a 20% raise each year you might have better luck elsewhere.
Don’t ask why and don’t care about why. There is no logical reason. Understand how they work and move.
If they gave you what you wanted, all your other coworkers would ask for the same.
They feel it’s better to lose one good employee, rather than have to give raises to 5 others.