Does US Bank usually higher new employees with no experience at a higher rate than current workers? New employees come in a grade higher than existing employees doing the same job, but probably less as they do not know anything and need to be trained. Is this common?
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Externally only makes more when you have bad hiring managers and leadership. It's obvious. Don't know how to promote talent you get it from outside. They have no loyalty and they leave. This is why US Bank has the worst retention of any bank globally. It's not rocket science, it's cause and effect.
US Bank is notorious for hiring externally and not promoting from within. Recent data shows this to be fact.
Not all banks pay more externally than internally. It's the bad banks that do this practice.
US Bank seems to try and remedy their poor external hire practices with this new series HR is pushing out. Sadly I think it's another ploy of distraction. Reason why is there would be no need to do this if you fired the unethical hiring managers. That solves the problem much more efficiently. Talent internally isn't in a shortage. What is in a shortage is bad leadership and hiring managers.
The best way to make more money, almost always, is to leave the company. New outside hires are always valued more, in basically every industry.
As has already been mentioned, this is common within banking and most other industries.
My own experience, left USB in 2008 for a 28 percent increase, it was a life changing raise. After 5 years at that bank there was some downsizing, the cost of getting a big raise was I was probably one of the highest paid people on the team and when we started to struggle I was the first to go.
Worked for a different bank after that which ended up being a small decrease, then came full circle and returned to USB in 2017 for a modest raise. At the end of the day moving around is going to likely give you more compensation but staying will give you more stability and comfort. I don't regret my move of course the money was obvious job but I truly learned different things in each bank that I probably wouldn't have learned sticking around with USB forever.
I don't agree that U.S. Bank never hires from within, but it is true outsiders get more money. From my perspective that has always been the case going back to Richard Davis.
Sometimes fresh perspective makes a difference. People willing to move, take risks and accept to work In ambiguous environment will always end up making more money than someone doing the same job. You may get good at what you do but you will become stagnant. It’s the ones who grow that will make the big bucks. Also this myth that people in NY or CA make more money is generalized. You will see that at an individual level that folks in AZ , NC, Minnesota, get paid equally well. Pay is highly individualized . Not only folks in NY and CA are making same salary as folks living low cost areas , they are paying higher taxes too. I was a manager at 3 different banks and saw this across the board . So get over it and advocate for yourself.
If you were a capable banking mind, would you prefer to work in New York or Charlotte, where the banking, regulatory, compliance and consumer/commercial lending leadership tends to congregate?
Now suppose you are hired to work in Minneapolis or St. Paul, what would it take ($$$$$$$$$) to actually move you to those environments?
This is quite common and not unique to US Bank. It's why people no longer have 30 year careers at one company. Start applying elsewhere and reap the results for yourself.
It was an infinitely better company when Richard Davis was in charge.
US Bank has always hired people from the outside instead of promoting from within. With the new leadership it's been happening more often. You'll notice a lot of Chase bank since Sekou's been giving favoritism to his people. US Bank isn't about promoting performance it's all about who you know. It's truly to the downfall of the company if this continues.