if you hire in new talent at a higher salary as the current internal employees, that in itself tells you that you are behind on the salary curve and in effect are punishing your employees for being loyal by not paying them the market rate.
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It’s called a notice period because that’s the only time the company notices your efforts.
Boss: "We can't afford the pay rise he wants."
HR Manager: "Then we should pay it."
"What?! Why?" asked Boss.
Hr Manager replied:
"If we can't afford his increase,
we can't afford to advertise, interview,
hire, pay and train his replacement.
It costs less to keep staff than replace them. Invest in your employees.
I posted this elsewhere but it fits here too.
I’ve been rated top dog many times and have been told each time one of the following:
“I can only give you 1K, keep in mind though that you are already making more than everyone else”
“HR has only given enough for me to give everyone 1K, we are BAU, you know how it is”
“No one gets a raise of bonus this year. It’s been a tough message to deliver to everyone”
The largest I’ve every gotten was 2K.
In a way its a good thing. It sets the tone for the effort given for the next year. Give me a 1K bonus, sweet, you now get 1K bonus worth of effort for the next year. Oh, you want above and beyond, we tried that and I didn’t get an above and beyond bonus. Instead I got 1K, so that’s what you get.
That’s the problem right their is that it upset your manager. Why would paying you the market rate upset your manager? Are they goaled on NOT giving out raises? Are the goaled on paying out the least amount that they can? It’s almost as if its a badge of honor or a goaled metric that they payout as least as they can.
I picture managers getting together, bragging and high fiving each other on how they manipulated things to keep from paying people more.
This is hilarious. I once got a market raise to match what my current colleagues were making. That upset my manager so I was told now that Im at the same pay as everyone else Im expected to work harder. Lmfao I nearly fell out of my seat since prior to that raise I was performing just fine.
This happens everywhere. Until companies go back and "review" salaries versus market rate every year you'll be stuck with whatever you make and 1% raises.
This doesn't mean loyalty is punished, they are conveniently lazy and won't recalibrate salaries...ever.
Sad but true