What should be done when new hires are paid more than existing employees?
It’s not a good feeling when your salary just doesn’t match up to your expectations and achievements. If you’re feeling this way, you may be wondering what you should do next. The first thing to remember is that it’s never too late to start negotiating.
It’s no secret that some people can earn more money than others at their jobs. And, in the workplace, we often see that people who are less senior in the company and less experienced tend to earn more than those who are more experienced and more senior. When this happens, it’s important to understand how salary compression works so you can use this to your advantage!
What does it mean for a new hire to make more money than the current one?
One way to gain an advantage in the workplace is to get promoted, but if the company has done their job well in filling positions with the best talent available they will often have one or more highly-skilled employees who are earning more than others at the same level.
Although this is most often applied in reference to the pay scale between levels of experience and expertise, it can also apply to the pay scales between men and women. When a group of employees in the same position earn different wages, it’s called wage compression. When a group of less experienced workers earn higher salaries than their more experienced colleagues, it’s referred to as wage compression or pay compression.
Companies with a history of infrequent raises or pay increases can experience wage compression.
A talent gap is a significant issue in the workplace today. For this reason, companies are beginning to look at ways to attract more top-tier employees. This is why companies are offering higher compensation and benefits to potential recruits.
When wages are compressed, it becomes difficult for employees to determine how their salaries compare with others, how their responsibilities stack up, and whether they’re being paid fairly.
When new employees are paid more than their predecessors, what to do then?
Hiring new workers is always an issue. In addition to finding the right person, there’s also the matter of what’s known as “cultural fit.” How do you know if a potential employee will be a good fit?
1. Take a look at the situation
If you’ve ever thought, “Oh, so-and-so is making more money than me and I don’t understand why,” this is why. When comparing salaries, don’t compare just the title of the position. Make sure to consider the whole package!
There are many factors that affect pay. Some of the most common are gender, age, race, education, skills, years of experience, location, type of job, and many others. Understanding how you stack up in these areas and using this knowledge can help you gain clarity and perspective in your position.
Are they good at what they do? Do they have skills that I don’t? Do they do things differently than me? Can we work together to make something even better than what we started with?
2. Stay positive and friendly
It is unlikely that you got the job because your friend or family member explicitly asked you to hire them. You should be happy for someone’s success, even if you don’t think they are the best choice for the job. Also, remember that you are in charge here so if you feel like you can do a better job than their resume suggests then you can still fire them.
Being kind to everyone on the team helps contribute to a positive work environment and it’s important for teamwork and collaboration.
3. Track your success & productivity
If you are thinking of talking with your boss or supervisor, you may want to first talk with the higher-ups at work. Your manager may be a good starting point, but if you are unhappy with what is offered, you should talk with the higher-ups first.
Take some time to track your productivity and success before you make an appointment to talk about your earnings. While it may seem a bit odd to think about before making a salary negotiation request, knowing your productivity can give you a much better idea of how well your work is valued within the organization.
There are a lot of different ways to keep track of this information. For instance, you can use a notebook and jot down ideas, write it down, etc. Some people prefer keeping a blog where they can show their work and even get feedback from others.
This type of honest self-assessment can really help you pinpoint areas in which you need to focus and improve. Identifying areas in which you excel can be done with it.
If you don’t feel like you’re able to be as productive and effective at what you do as others at your level, it might be time to reevaluate your responsibilities. If you feel like you aren’t as effective as you could be, it’s a good idea to think about promotion.
4. Research fair pay
If you feel that your salary is not commensurate with your efforts or your personal needs, it may be time to find out what a fair or average wage is for people who have similar positions to you. If your salary is below what you feel it should be, you could look into other areas that may benefit you more.
The state and national averages can be compared using online resources. A person’s total compensation in their career or industry may be affected by their level of education and experience.
This might be the most important part of the equation. The first step is to take a look at what you have, figure out what you need to do, and then set a reasonable expectation as to how long it will take to get there. You’ll want to set a reasonable time frame for yourself and your team that is both realistic and that you can meet.
It is appropriate to start a salary negotiation. However, this may not be the best move in terms of what is best for you in the long run. If your job is truly worth the money you’re earning, you may want to consider a move to a higher-paying position.
5. It’s best to talk with your boss at the right time
While higher wages are usually considered a sign of greater financial stability in the workforce, you should keep in mind that not everyone is looking for financial stability.
It is crucial to remember the best time to talk about something like this is right when the conversation happens. If the company is in the midst of a transition or has recently undergone major changes, it’s probably a good idea to delay scheduling meetings for a while. You may also want to consider holding off on other tasks that require coordination until things settle down.
6. Polish your skills
Skill-sets are important because they represent how well you are able to perform your job. In general, skilled workers earn more than unskilled workers. A good way to increase your skill-set is to get out of your comfort zone and learn new skills.
Being committed to growth and learning in your field is very important, especially since being able to prove your dedication means a lot in your career. Dedication to growth and learning doesn’t just happen overnight; it takes consistency, effort, and discipline. This can easily be achieved by giving yourself a dedicated period of time each week to improve your skills, knowledge, and understanding.
7. Expand your professional connections
You have a professional network that is composed of your work-related connections and personal contacts who you can call on for career help and advice. Your personal network can be an important component of your job search and career development.
In the world of social media, it is important to have a strong personal branding statement that defines who you are and what you do. Without this clarity in your personal branding statement, your followers will have no idea how to connect with you and may even forget you when it is time to share their brand with others.
It’s time to get serious about your brand and what makes you special. You’re a well-known name in your field and your customers know it, but you can’t expect to maintain that status if you don’t develop a strong brand. A brand is more than a logo and color scheme. It represents your core values and the promise it makes to customers.
Join a school alumni group. Join a school alumni group. A networking event is a great place to meet other people in your industry. A networking event is a great place to meet other people in your industry.
Look for ways that you can improve yourself in your field. It can be as simple as taking a course, learning new skills or going to a conference to network and get inspiration from others in the field.
8. Schedule an appointment
It’s time to talk to your boss or your employer about your pay increase and make sure it happens. The first step in doing so is to schedule an appointment with their assistant, or if possible, you can send a direct email to the person who oversees the budget.
This is a good example of where being a little more formal is acceptable, since it conveys professionalism. Also, be sure to ask for a specific time and place for the meeting if at all possible.
Focus your conversations on what you want. Don’t let your salary be the focus of your conversations; instead, talk about your desire to achieve certain goals and how that will impact how you get paid.
9. Be prepared
Be sure to plan ahead! Even if you’re well prepared, it never hurts to go over some key points.
Start with the assumption that you will not get what you want. There is a good chance that you won’t get the raise you are hoping for, and you may even be asked to stay at the same salary.
Your manager will probably want to know how your performance is going, as well as where you need help in order to make your job easier. You will also be expected to talk about your personal plans and goals for the future.
Be sure to write down the amount that you want to make. In the end, having a salary that you’re not willing to live with will only lead to disappointment.
There’s no doubt that you should ask your employer about additional types of compensation. In fact, research shows that many companies don’t offer what their employees are looking for. And, this can make it difficult to find the ideal job.
10. Seek new opportunities
If you are looking to increase your salary or consider a career change, it is important to keep your mindset open and not be tied down by one particular area of expertise. While you may not be ready to go out and actively seek employment, you should always keep an open mind when it comes to new positions.
Now that you’ve built a portfolio, why not put it to use by making a connection with a recruiter. With the new connections you’ve made, your chances of getting hired will go up.
If you want to change jobs, try asking the employer for feedback about why they are letting you go or about the job duties and tasks you will be performing if you are going to be working there. They may be able to provide valuable insight on what the role is like and whether or not the job and/or the company is a good fit for your skills and interests.
