Tuesday, 22.11.2022

Is a new employee always better off?

Is a new employee always better off?

Newly recruited workers often have higher salaries than those with longer experience. True or false? True… .

➡It is a bit like with special offers from mobile networks or cable TV operators. The best prices are for new customers. And what about the long-term, exisiting clients?

➡This frequently observed negative trend is exacerbated especially when there is a shortage of applicants with the right skills who are available for a job in a relatively short time. Companies and managers try then to attract the best or solve a crisis.

In times of such dynamic market changes this is often unavoidable. Unfortunately. It shouldn’t become a standard, though,  because the current employees will one day come with a complaint or demand or will simply disappear from the company. Employees often talk to each other about their compensation.
It is therefore worth taking action to prevent such extreme situations. How can this be counteracted? Among other things, by:

1. Creating a transparent wage grid in the company

2. Establish a clear career path, set KPIs for individual employees, so that they can consciously and transparently strive for promotion and higher income.

3. Set a clear salary range for a given position (as a result of the transparent salary grid in the company).

4. Monitor salaries within the company/market regularly and compensate for possible inequalities.

➡Higher starting wages is a problem not only in Poland but also in other countries of Europe or the USA.

In the US, Capterra (a software provider) conducted a survey of HR managers and employees to confirm this trend.

➡65% of the managers surveyed said that starting salaries in their organisation are currently higher than usual ones due to inflation and lack of talent. On average, salaries for new recruits are 9% higher than normal salaries.

➡In Poland, that percentage is even higher. Already in the phase of a job change applicants expect at least 10-15% higher salary than the one in the previous company. Employers are therefore in a difficult position, particularly in view of the crisis, rising costs and a complicated and uncertain tax system.

If you are wondering how best to deal with this problem, then you are in the right place. You can write to #RICG or directly to me.

#hr #recruitment #wages