Let me walk you through how this happens and what someone should do about it.


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I'm Jeff Altman, The Big Game Hunter I'm a coach who helps people with workplace
related questions-- job search, hiring more effectively, managing and leading, you
know, things related to the workplace.. This was originally asked in its . . .
specifically about software developers.. Why are new candidates sometimes given a
higher salary than someone doing the exact role who's been with the company
longer great question and and it's funny because corporations try to use the
existing salaries sometimes as leverage to push an outside person down oh we
have a person on staff or people on staff who are appreciably stronger than
you and then they try and talk you down the reason they go to the outside is
because they perceive a skills deficiency the market may have moved and
thus the outside person should be paid more and thus to attract the person
they're gonna have to come up with money. Another reason why the internal person
is paid less is that the system is set up to be a disincentive to staying
within a firm. Let me just give you an example. I'm gonna work with simple math--
a hundred thousand dollar-a-year person, stays with it a firm and they get
a 3% raise they're now a one hundred three thousand dollars the next year
they get a 3% raise. They're making one hundred and six and change they get
another three percent raise and now there were a hundred and nine and change.
They haven't cracked $110. that external person may be making 95 or a
hundred they change jobs. We know they're not going to change jobs for a three
percent raise. I'd say they're making ninety five
thousand. They may change jobs to $105, $110 or more. Let's assume 110 right off the
bat. The person is in an advantage position with regard to wages and each ensuing
increase again let's say three percent is going to push them higher than the
person who showed loyalty firms do this all the time they have this disincentive
in the system decide not to pay people what the market is but to pay people
what they think they can get them for that's true when they hire on the
outside that's true with salary increases on the inside in what I've
said for many years is that if a person changes jobs every two and a half years
they will be significantly more highly paid than if a person shows loyalty just
follow the math it makes obvious sense so why do they do it
Because they need to why don't people leave these firms
well stability and loyalty tend to be the two major reasons and then from
there it becomes fear of change and a host of other things
I'm Jeff Altman. I hope you found this helpful. My website is TheBigGameHunter.us
hunter dot us if you go to the site go exploring because there's a ton there
that can help you if you're interested on one-on-one coaching from me at my
website which, again, is TheBigGameHunter.us you'll see a button on
this site that says Schedule. Schedule time for a free discovery call, interview
coaching a host of other types of services including a free discovery call
with me where you have a chance to evaluate whether I can help you lastly
subscribe to my channel on YouTube by clicking the little icon in the lower
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can watch me there as well have a great day and take care


Jeff Altman, The Big Game Hunter
Jeff Altman, The Big Game Hunter

Jeff Altman, The Big Game Hunter is a coach who worked as a recruiter for what seems like one hundred years. His work involves career coaching, as well as executive job search coaching, job coaching, and interview coaching. He is the host of “No BS Job Search Advice Radio,” the #1 podcast in iTunes for job search with more than 2100 episodes.

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Why Are New Hires Given Higher Salaries Than Existing Staff? | JobSearchTV.com


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