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Compensation question.

Indiana Mike

Indiana Mike

Nov 18, 2005
3,049
3,883
#1
If you found out your employer was hiring people with the same or less skillset for higher compensation than your receiving would you be upset? What would you do?

We are talking a discrepancy of at least $5000 a year.

It's time to have a talk I do believe.:mad:
 
#4
$5000 doesn't tell me a lot. If you make $30,000 a year, $5000 is quite a bit. If you make $200,000 a year, it's barely anything.

In my field - IT, speficially software/automation development - if you place high value on compensation growth, you generally hop from place to place every 3-5 years or so. Staying put definitely leads one to "falling behind". In fact, when I'm hiring people, if I see someone has been at the same place for more than 10 years, they have an uphill battle in front of them (they'll have to explain how they keep up on tech, practices, languages, what challenges they sought out and resolved, how they compete with someone with much wider experiences, etc). But that's my industry, and definitely not reflective of many others.

SO, if I were in your shoes, saw new hires with the same skillset coming in and making more, that'd probably be my signal to find a new place, if I weren't already.
 
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#8
At my first job after getting out of the USAF, I was assigned to train a new guy making substantially more than me and who had zero experience. I had no grudge or ill will toward him but it really pissed me off. But it happens everywhere.

At any rate, if you challenge it, be sure you have a solid case *and* a fallback plan. Some employers do not respond well to this card being played.
 
Last edited:
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#9
MJ5150 said:
I don't care what other people at my job get paid. I receive a wage that I am happy with. That's what matters to me.

-Mike
Click to expand...

I agree Mike. Although, to be fair, I work in a non profit so my monetary expectations are obviously adjusted to reflect my choice of company to work for.

When I was a younger man, with a hunger for wages and position, I was pretty hyper aware of what others were making. I had no issues walking into my mangers office and having my pay re-evaluated because I made sure I was the top guy doing what I did. That gave me a lot of confidence to expect to be the highest paid. It got me to be the manager frankly. A few times it was suggested that I needed more tech schooling. I enrolled in and aced my classes. I always got my compensation request.

The tech field being what it was in 2000, when the P3 performed quite poorly in the business sector ( sunn micro systems kicked the crap out of Intel ) I was among 2000 people laid off. I changed fields pursuing something I was immensely passionate about. I'm not going to lie, I miss the checks, but not the life.

I have zero % of that drive these days. I'm happy just being a supervisor of a rehabilitation services industry leader :)

Having said all that OP, if you are equally trained ( or better ) and perform equally ( or better ) to these new hires, I'd say have a chat with the powers that be. The worst that could happen is you don't get what you want which is where you are now anyway. Best case is they value you, and have kept your pay down because you were content to take what they give. Not ask for what you're worth.
 
#10
MJ5150 said:
I don't care what other people at my job get paid. I receive a wage that I am happy with. That's what matters to me.

-Mike
Click to expand...

It's not about competing. I have a job that requires a skillset that takes years to get. If I'm being under paid for my level I either need to receive a new package or move on to get it.

As said before I may have overstayed and HR is paying new hires the current rate while leaving the veterans to languish in a payroll stall.
I understand your point. But as I approach my retirement goal in eleven years that 5k could be invested towards that goal. Why leave it on the table if it doesnt need to be.

I have a great relationship with my superiors.
We will see how right I am about that perception.
 
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#11
Postscript: I was one of their most productive and reliable techs. I lined up another higher-paying job and gave my notice but they really wanted me to stay. The director of manufacturing called me into his office to persuade me to change my mind. But he did not want to budge on the pay. He tried to convince me the company I was going to was terrible etc etc. Finally he made a small concession on my hourly wage and offered to move me from day shift to swing shift. Swings paid a 50 cent hourly premium (this was in the days of $5/hour).

Long story short I stayed there for 7 more years, was rewarded with regular promotions and raises, and got all the overtime I wanted. And it lead to another job that really opened up new opportunities for me.

Still reading? ;)
 
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#12
I don't have plans to quit . I don't have plans to demand a raise .
I do have plans to ask if they think I'm currently being compensated, in their eyes , up to date with what's current. I think I've got my feelings bruised more than anything.

I want to hear their answer.
 
#13
I think you should have a non confrontational talk with your boss. Let him know beforehand that you'd like to discuss your salary so that you don't catch him off guard.

Don't talk about your coworkers.

Have a list of ways you've shown your value to the company. List your accomplishments for them – solved problems, completed projects, increased profitability, etc. Tell him that you are happy with the company. Tell him the vision of what your job could be. New things you could do or responsabilites you could take.

Show them that you are a valuable asset to the company and then tell you think you deserve a raise. Have a number in your head but let them make an offer.
 
#15
Selta said:
OP, do you get COLA raises? Quarterly reviews or anything similar for performance? Are you getting bonuses or anything similar?
Click to expand...

Yes we get regular COLA ,every one does ,the same percentages. No reviews unless your performance is subpar. No bonuses which is ok with me. They've been hiring at a rate higher that the "regulars" are receiving. The new hires will always be the same amount above,because of the COLA policy. There is no catching up. That's why I think it's time to request a review of my package.
 
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#16
Indiana Mike said:
It's not about competing. I have a job that requires a skillset that takes years to get. If I'm being under paid for my level I either need to receive a new package or move on to get it.

As said before I may have overstayed and HR is paying new hires the current rate while leaving the veterans to languish in a payroll stall.
I understand your point. But as I approach my retirement goal in eleven years that 5k could be invested towards that goal. Why leave it on the table if it doesnt need to be.

I have a great relationship with my superiors.
We will see how right I am about that perception.
Click to expand...

It's not competitive for me either. If someone makes more than I do for the same job and skillset, I do not think I am underpaid. I am working for the wage I agreed to and it is enough for my wife and I. If I felt I deserved more, I would ask for it.
I suppose I could start finding out how much money others with my skillset make and compare my wage. Maybe I find out they make more than me. Now what? Go get that job too that makes more? When does it end? It doesn't. Now I'm stuck in the rat race trying to always be sure I am getting every last penny I think I deserve.
My message is not to worry about if you are underpaid. You do that and you send yourself off into anxiety, worrying, and stress that doesn't really need to be there.
All this time you have apparently been OK with your wages. Now you got wind that others who you believe are equal to or less skilled than you are being hired and making more money than you, and now here you are wondering about your next career move as a man in your 50's (I am making that age assumption based on your retirement goal in 11 years).
When a person lives their life comparing themselves to others, it becomes increasing difficult to live a satisfying life.

-Mike
 
#17
MJ5150 said:
It's not competitive for me either. If someone makes more than I do for the same job and skillset, I do not think I am underpaid. I am working for the wage I agreed to and it is enough for my wife and I. If I felt I deserved more, I would ask for it.
I suppose I could start finding out how much money others with my skillset make and compare my wage. Maybe I find out they make more than me. Now what? Go get that job too that makes more? When does it end? It doesn't. Now I'm stuck in the rat race trying to always be sure I am getting every last penny I think I deserve.
My message is not to worry about if you are underpaid. You do that and you send yourself off into anxiety, worrying, and stress that doesn't really need to be there.
All this time you have apparently been OK with your wages. Now you got wind that others who you believe are equal to or less skilled than you are being hired and making more money than you, and now here you are wondering about your next career move as a man in your 50's (I am making that age assumption based on your retirement goal in 11 years).
When a person lives their life comparing themselves to others, it becomes increasing difficult to live a satisfying life.

-Mike
Click to expand...


If I'm being underpaid by market standards and am ok with it that's fine. I'm not ok with it.


It's not about comparing myself to others. It's being enlightened, by the very people i am talking about ,without asking, as to what's going on. They don't think it's right either . I've known these guys for years. I vouched for them during their hiring process. I was a reference. I participated in their hiring.




I can see your points and can somewhat agree, but given the nature of what's going on it's a little different IMO.
 
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#18
That's fair @Indiana Mike. You definitely have a good attitude about it and the way you've told us you'll approach it will likely get you the results you're after.
Best wishes to you good sir.

-Mike
 
#19
MJ5150 said:
That's fair @Indiana Mike. You definitely have a good attitude about it and the way you've told us you'll approach it will likely get you the results you're after.
Best wishes to you good sir.

-Mike
Click to expand...

Its complicated for me. Part me says leave it alone. Part of me says don't, because it will fester and affect my attitude, which apparently it already has.

I have no choice but to bring it up as I cant let it go without negativity. At least in the current moment.


Thanks for your input.
 
#20
Happens in nursing, too. New grads hired at a higher salary than the folks working the same company for years.
They pay to get you, but not to retain.
Many nurses leave a hospital for the higher pay, then after a year, get rehired at the current competitive pay scale.
 

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