Is Your New Hire Asking for More Money Than Current Employees?

Often businesses have an issue with equity when they decide to hire a new person who, in order to get them, needs to be paid more than current employees.  However, you don’t want to lose your current employees - who WILL find out what you are paying the new person.

Photo by Karolina Grabowska from Pexels

First, take a look at those things that might justify salary differentials.  Longevity is not one of them unless it is tied to skill levels.  This means you might want to have salary bands with salary ranges for different skill levels.  This can help you to justify salary differences.

Next, do a salary audit for current employees and see where they fit into the job bands.  An audit affords employers the opportunity to examine and document various circumstances which may justify pay differentials.

If you do hire someone at a higher salary because they have higher skills, meet with current employees to discuss the levels and give them a career path to earn more money.