What does experience pay?

Fair Employer · January 2006

I have an employee with over 40 years work experience (not in our field). She has complained that her pay should be equal to the other employees in the same department with similar work experience (in years). Their experience is over twenty years in our field (construction accounting).

My question is, do I need to pay her the same as the more experienced employees. Note; she is not that far under their pay scale.

Just how much is experience worth?

SMace · January 2006

I don't think you should pay according to experience. What if they sucked for 40 years. Should they make more money?

I would pay according to the job they are performing. If they want some extra, tie in some performance incentives.

HRinGA · January 2006

I agree. Most companies, mine included, pay what is in their budget. You can't get sucked into this game or everyone else will think they deserve more b/c of experience or expertise. The incentive plan may work, but be wary of that as well. You can create a monster with those, where employees begin to expect it instead of appreciating it.

TN HR · January 2006

Pay for performance. Enough said.

Balloonman1 · January 2006

40 years experience? Hell she must be old, don't hire her. She will just bitch and bitch and be going to the doctors office all the time.

The job pays X. She can take it or leave it.

My $0.02 worth,
The Balloonman

PS I was kinda joking about not hiring her because she is old......:-)

SMace · January 2006

You keep up that attitude you are going to live a long, long time.

jitrbug · January 2006

You hire past experience. Your not paying for the past experience. You are paying for performance. How they apply their past experience to insure good performance is up to them.

lynn2008 · January 2006

Consider where she is by knowledge, skills, and abilities, and if she is up to those in theory she maybe should be paid the same.

You might also have the situation in old companies, like my employer, where people have advanced to the top of a pay range for a position because they survived a long time, not necessarily because they are the "best of the best".

In many jobs, what people have is about 5 years of progressive experience and then the next 1 - 30 years is only a repeat of the previous years experience. (1 years' experience 30 times).

If she is being hired in, it is also possible you have some very senior employees who exceeded what was rational under poorly controlled pay plans and far exceed the job value. No need to repeat the problem.

If you have sacred cows, it is time for sacred cow tipping.

What does experience pay?

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