In recent years, many employees have opted to leave their jobs for better opportunities, a phenomenon known as the “Great Resignation”.
This mass exodus has forced many companies to offer higher salaries and hourly wages to attract new talent.
While this trend has benefited some, it has also sparked discontent among existing employees who are paid less than new hires.
The Discontent Among Existing Employees
A Lowe’s employee, Alex, recently highlighted a concerning trend within the company. According to Alex, new hires with no experience are being offered a wage of $2 higher than he currently earns.
This revelation, shared through a viral video, has garnered significant attention, with over 368,000 views as of the last report. The video showcases Alex’s evident frustration, using a popular meme format featuring a cat giving a deadpan stare to convey his dissatisfaction.
Why HR Ignores Old Employees for Salary Raises
In numerous organizations, HR departments prefer new employees over veterans regarding salary increments. This trend, unfortunately, leaves the older employees feeling neglected and stuck with their existing pay scales. This bias fosters negative repercussions for the employees and adversely affects the companies.
The primary reasons behind this disparity are the perceived higher growth potential of new hires, the competitive job market necessitating higher offers to attract fresh talent and a presumed complacency among older employees. Moreover, HR often needs a comprehensive system to accurately evaluate the contributions of older employees, leading to their undervaluation and underpayment.
This neglect can culminate in low morale, decreased productivity, and high turnover rates, which are detrimental to the company’s growth and reputation.
Addressing this issue requires HR to adopt transparent communication regarding compensation policies and foster a culture of fairness and recognition for older employees’ contributions.
What to Do When New Workers Out-Earn Current Staff
In the current competitive job market, companies are often compelled to offer higher salaries to new hires, sometimes surpassing the pay of existing employees with more tenure. This phenomenon, known as pay compression, can foster discord within an organization if not addressed appropriately.
Before taking corrective steps, employers need to discern whether this is a broader issue or an isolated incident. Solutions might include more frequent salary adjustments to keep pace with the market demands, offering bonuses, and involving managers in setting pay levels for open positions to prevent pay compression issues.
Moreover, transparent communication about pay structures and offering competitive total rewards packages can also be instrumental in managing this challenge effectively. Organizations must adapt swiftly to market dynamics to retain talent and maintain harmony within the workforce.
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Sources
- linkedin.com/pulse/why-hr-ignores-old-employees-salary-raises-unfair-treatment-adnan
- shrm.org/resourcesandtools/hr-topics/compensation/pages/when-new-hires-out-earn-current-workers-pay-attention.aspx
This article was produced and syndicated by Viral Chatter. It was inspired by this video:
@another_drunken_sailor13 And you’ve been there for over a year.
#Work
#Lowes
#CustomerService
#Retail
♬ original sound – Alex
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Martha A. Lavallie
Martha is a journalist with close to a decade of experience in uncovering and reporting on the most compelling stories of our time. Passionate about staying ahead of the curve, she specializes in shedding light on trending topics and captivating global narratives. Her insightful articles have garnered acclaim, making her a trusted voice in today's dynamic media landscape.
