Salary Compression
Rockie
2,136 Posts
Quick question on a complicated subject. How do you guys handle folks that were hired several years ago that have worked themselves up to a certain salary. This salary is now what you have to "hire in" people at. So...there gets to be smaller and smaller discrepancy between the current employees and the new hires.
Case in point. Registered nurses salaries have skyrocketed. In order for us to attract good candidates, we have to pay what the going rate is in today's market for an RN (which is considerable). Some people who have been with us 5+ years feel it is not fair for them to make about the same as a new hire. (These are not new grads - but people with considerable experience. We don't hire new grads).
If we adjust salaries every time we make a new hire, this would get out of control very quickly.
Any insights? Advice? Opinions?
Thanks
Case in point. Registered nurses salaries have skyrocketed. In order for us to attract good candidates, we have to pay what the going rate is in today's market for an RN (which is considerable). Some people who have been with us 5+ years feel it is not fair for them to make about the same as a new hire. (These are not new grads - but people with considerable experience. We don't hire new grads).
If we adjust salaries every time we make a new hire, this would get out of control very quickly.
Any insights? Advice? Opinions?
Thanks
Comments
Good luck!
James Sokolowski
HRhero.com
Now, of course, tech salaries have dipped, and for those who are still with us they are probably now paid higher than market. Which creates a phenomemon where someone might be reluctant to leave, sometimes good and sometimes not so good. But I still think it was the right thing to do.
When we wonder whether our salaries are out of synch we usually do a compensation study of those positions, and if we learn our salaries are out of synch with our industry competititors we decide on a strategy for fixing. We can't always do all the fixing at one time, but we come up with a plan.
Dasher, where are you?