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New hires make as much or more than loyal veterans?

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Topics relating to managing people and relationships

Disciple96

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This is something crappy I've never understood.

So Joe gets hired in 2015 when starting rate is $15/Hour. He works hard. He's never late, never misses work except for once a year if he gets sick, and always gets his job done and does great quality work. He helps his team but doesn't care for leadership roles and stays a team member. He's a true Rockstar. Eventually he gets raises for his hard work, and over the years works his way up to $20/hour.

Zoomer gets hired in 2020, along with 2 dozen other new recruits. The starting rate is $19.50 an hour for the first 90 days, with a 50 cent raise after he gets full time. He works hard, but not too hard, and doesn't plan on staying with the company longer than a year or so. Sometimes he is late, but not very often. He misses work for vacations, seems to get sick 5-10 times a year, and he makes quality errors an average amount of time, but he makes his 90 day probation and gets his .50c raise to $20/Hour.

In what world is it justified to treat your loyal employees this way? Why do companies do this? I've never been on Joe's end of the equation, but I always feel bad when I get a new job and vets are like, wow you're making how much? It took me 3 years to get that rate of pay and I'm barely making more than you!

Wouldn't it make more sense to have some kind of a "sliding scale" so this doesn't happen? I'd like to think if I was in big business I would treat my mid-long term employees better than this.

Does anyone have an explanation besides "the job market became more competitive and the cost of living went up"
 
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Speed112

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Over here, over there.
In what world is it justified to treat your loyal employees this way? Why do companies do this?

It's not. Because they can get away with it.

Since people lack independence and the (mental) freedom to pack up, leave, and go where they're treated best, there is barely any pressure to give raises. That's why it's recommended to move to a new job every few years. But that's still super slow.

When I started freelancing I raised my own rates from $15/hr to $150/hr (average since I switched to value-based flat rates) over the span of 18 months. Nobody is gonna give you a 10x raise over 18 months or pay you anywhere near what you're worth unless you have serious leverage and it's very difficult to replace you. Now I make what I want 9 years later.

People don't know how to do that on their own, people don't know how to leverage their worth, they don't know how to increase their perceived value, and they don't know how to sell that perception for higher pay. In a company or outside.
Because of course the employer who is incentivized to depress wages would never teach you that.

So all they learn is how to execute. All they do is execute. And then are satisfied with some 1% increase that doesn't even keep up with inflation and are happy that "I've got a raise!"

Meanwhile new hires have higher expectations because of said inflation or market conditions have changed or maybe they're more entitled. So they have to be paid more.

The employer will not give the older folk raises to exceed the new hires because that's a bad precedent to set in their eyes. Gives people funny ideas. So they'd rather fire someone who feels undervalued than make better use of their skills and experience by compensating them higher. Or they promote them to manager despite not having management skills to shut them up and they ruin everything.

It's a tale as old as time.

I don't understand it either. Seems like awful management. But when the managers are the people who felt robbed 10 years ago it's to be expected that they perpetuate the cycle of devaluing.

Learn what you're worth in the marketplace.
 

thechosen1

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This is something crappy I've never understood.

So Joe gets hired in 2015 when starting rate is $15/Hour. He works hard. He's never late, never misses work except for once a year if he gets sick, and always gets his job done and does great quality work. He helps his team but doesn't care for leadership roles and stays a team member. He's a true Rockstar. Eventually he gets raises for his hard work, and over the years works his way up to $20/hour.

Zoomer gets hired in 2020, along with 2 dozen other new recruits. The starting rate is $19.50 an hour for the first 90 days, with a 50 cent raise after he gets full time. He works hard, but not too hard, and doesn't plan on staying with the company longer than a year or so. Sometimes he is late, but not very often. He misses work for vacations, seems to get sick 5-10 times a year, and he makes quality errors an average amount of time, but he makes his 90 day probation and gets his .50c raise to $20/Hour.

In what world is it justified to treat your loyal employees this way? Why do companies do this? I've never been on Joe's end of the equation, but I always feel bad when I get a new job and vets are like, wow you're making how much? It took me 3 years to get that rate of pay and I'm barely making more than you!

Wouldn't it make more sense to have some kind of a "sliding scale" so this doesn't happen? I'd like to think if I was in big business I would treat my mid-long term employees better than this.

Does anyone have an explanation besides "the job market became more competitive and the cost of living went up"
The problem here is employee mindset...

Nobody cares about your goals, your finances, your future as much as you do. It is entirely up to you.

It's not even mean or evil of the boss or company to do this - because they aren't even doing it on purpose. They are managing a company, not doling out favors.

If you are not being paid what you are worth, ask for a raise, or quit. It is your responsibility.
 

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