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Old 07-14-2010, 04:48 PM
12,115 posts, read 33,679,941 times
Reputation: 3867


My employer is private and I have been there almost 20 years in September.

Normally i work a 37.5 hour, 5 day workweek, but there are times when if i am needed an extra day I will get paid for working an extra day(as long as I am physically at the job 6 days per week and those 6 days are not covered by a sick, vacation, personal day) i will see an extra day's pay in my check. also, this is in lieu of banking the day for exchange for time off in the future

also, if i work on a holiday i will simply see an extra day in my check for that period, so the day cannot be banked for a future time

also, i have lots of accumulated vacation time, some of which is allowed to be "bought out" at the rate you were paid at the time it was earned

all these increase my salary; 2 years ago from buy-outs and extra days worked(and bonuses for a successful audit inspection) i brought in about $15,000 more than my base

my question is then does an employer consider the total $$$ picture when it comes to new hires?

for example, when a new employee comes on who has my exact qualifications and position, can that employee actually be hired at a rate higher than my base even though that employee may not bring in as much as i did for the year because they do not have all the vacation time to buy out to therefore increase their salary?

or would my employer be obligated to hire at the same base or less what i make if they had the exact same position/quals as me?

to illustrate, i will use lowball figures just to keep the math simple

for example my base salary is $10,000 per year based on a 37.5 hour workweek, but between bonuses and extra days/holidays worked and buy outs, i brought in $25,000 for 2010 instead of $10,000

then new employee X comes on with exactly my quals and same level of responsibility, but he gets hired at a base of $15,000 or $20,000 because he doesn't have all that excess vacation time accrued from past years

is this common practice?
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Old 07-14-2010, 04:51 PM
Location: Spokane via Sydney,Australia
6,612 posts, read 12,839,560 times
Reputation: 3132
They pay what they think the job is worth at the time they hire - period.
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Old 07-14-2010, 05:05 PM
1,173 posts, read 4,751,477 times
Reputation: 1338
Definitely common practice to pay new hires more than people who have been around for years even without all that vacation time business.

Staying in a job for years on end is not a good way to grow your salary, you're going to get small raises every year (or less frequently in times like this) 2% or something. 20 years ago maybe $10K (to use your example number) was a fair market rate for your job. After your small raises every couple of years let's say you now make $15K. Well now 20 years later fair market for that job is $25K if that company hires a new employee they are going to pay that new person $25K (maybe $30K if they negotiate well). They are NOT going to turn around and give you a raise so that your salary matches the new hire.

If you are good at what you do maybe you can pay a few bucks for a "study" to be done on the going rate for your job and request a pay adjustment, don't be surprised if they say no or don't bring you quite up to matching.

Also, when you have this talk with them DO NOT mention that you know what so and so makes. This will make them PO'd since your not supposed to talk about compensation with your co workers.
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Old 07-14-2010, 09:45 PM
Location: Marion, IA
2,793 posts, read 6,122,630 times
Reputation: 1613
It's based on:
Likelyhood they think you will leave
How hard it would be to find a replacement if you did leave

If you can do better than what they pay you then put your resume together and move on.
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Old 07-14-2010, 09:50 PM
Location: NJ
17,573 posts, read 46,137,120 times
Reputation: 16273
I can't imgaine they would pay him more simply based on the fact that you earn more from your excess vacation and accrued days.

For one thing, what would happen when the new employee was around for a while and had those things. Then they would make even more.
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Old 07-15-2010, 07:02 AM
5,938 posts, read 4,697,978 times
Reputation: 4631
They pay the new guy such that they can get him hired and still turn a profit. It really has very little to do with your salary. Not all employees of the same "title" earn similar pay.
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Old 07-15-2010, 07:19 AM
2,718 posts, read 5,357,929 times
Reputation: 6257
I've never heard of a company saying "Hmm, Employee X has vacation days accrued, had buy outs and has worked 14 extra days this year so let's pay the new buy based on that." That just doesn't make sense.

The base salary for the job is determined and that is what is paid. How the new person decides to use (or not use) their vacation days, etc., has no bearing on the salary allocated for that position.
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