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This was mentioned on another thread, and I thought it was an interesting topic. Why does it seem that many employers are not willing to pay the talent they have well for promotions and such, but are willing to pay larger amounts to outside talent who will have to be trained and gain experience of the new organization's processes?
Because the employer has seen how the current crop of employees turned out so they decided they need to up the bar by paying more to get competent employees. It's a business gamble; pay more to the group they have now that turns out to be a disappointment or pay more for newer fresher people who may be just as bad or may be so much better. The known isn't worth the investment so they pay more for the unknown and hope for the best.
This was mentioned on another thread, and I thought it was an interesting topic. Why does it seem that many employers are not willing to pay the talent they have well for promotions and such, but are willing to pay larger amounts to outside talent who will have to be trained and gain experience of the new organization's processes?
"Train people well enough so they can leave, treat them well enough so they don't want to." - Sir Richard Bronson, Virgin Atlantic Chairman
Most companies haven't hold their management level accountable with losing talent. It's easy to keep firing or letting people leave and hire new people. We as humans are conditioned to enjoy having variety and meeting new people. Making workers happy is not easy, money is one factor but not the only. There are places where people are happier and stay longer even though the pay is lower and many places overpay but can't seem to keep anyone including the CEO.
Most companies will NOT pay recruiting fees for lower level jobs (secretarial, admin, office manager, clerks, shipping & receiving, warehouse, etc.) and sometimes not even for upper level jobs. There is simply not much reason to. They can get hundreds of resumes and tons of people in to interview for the jobs.
They WILL pay recruiting fees for jobs that require some rare skill, or some skill set that is hard to find.
Probably, the costs come out of different budgets; one capital, the other operations; or something like that.
Many times I have seen companies add in the cost of a new employee to a new project out of capital funds. That is a different budget from the operating expenses of old projects.
Overall, I guess it comes down to long term vs short term accounting. Something I feel is helping to destroy American competitiveness.
Last edited by blktoptrvl; 09-29-2016 at 02:38 PM..
Because the employer has seen how the current crop of employees turned out so they decided they need to up the bar by paying more to get competent employees. It's a business gamble; pay more to the group they have now that turns out to be a disappointment or pay more for newer fresher people who may be just as bad or may be so much better. The known isn't worth the investment so they pay more for the unknown and hope for the best.
I'm referring to people they are offering promotions to. Why would they offer a promotion to someone who they deem incompetent?
I find your comment a bit absurd. Everyone who leaves for better pay is incompetent? Yeah, okay.
Short sighted, in La La Land. They think golden, one-eyed unicorns will fall out of every tree if they just put a job posting up despite paying bottom dollar. What they can't seem to comprehend is that you aren't going to be attracting the great working, knowledgeable educated employee for $11-12 an hour.
Its just like shopping or electronics. You get what you pay for.
I love listening to these whiny, greedy, clueless, head in their butt companies not being able to understand why turnover is high, and they can't attract quality prospective employees. Hmmmm.. I wonder why?
At the end of the day they are just better off upping the pay of their best employees. Instead of thinking they can kick them to the curb or let them walk and obtain the same or better talent for the same freakin pay.
Its why people just take part time jobs out of college, or find something else to do with their time instead of the "rate race". What these employers are offering now is INSULTING
Probably because they know most employees will stick around. Some, like myself, are 100% okay with changing jobs, as soon as 12 months, but in my travels most of my coworkers stick around 5+ years, if not for most of their career. Honestly, seems pretty simple to me. A company is profit driven, and will do what statistically makes the most money: underpay employees who will stay and exploit them, and lure new talent at market prices. If the market prices are lower than your current pay, watch out for the pink slip cause they'll probably bring on some new talent at lower pay.
There are many exceptions to this I'm sure, but if your field isn't in big demand, either suck it up, do something special at your current gig, or spend the time looking for a new job.
Some employers DO pay their existing employees big raises, though some only pay some of their employees good raises--easily replaceable employees (maintenance, admin, etc) get shafted.
Last edited by smarterguy; 09-29-2016 at 03:42 PM..
The same companies tend to do the same with their customers. They'll do anything to get a new customer, but couldn't care less about retaining them.
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