Why Does The New Employee Get Paid More When I've Been Here Longer? | HR 101

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Why Does The New Employee Get Paid More When I've Been Here Longer? | HR 101

4 Hours ago
By ellephant


If you've ever wondered why the new employee who just got the job has a higher pay than you, who has already been in the company for some time, we're here to break it down for you. 

Based on a HR TikTok page, here are the reasons why she/he is getting paid more than you. 


1. Market value

When you were asking before you got the job, that was the market value for the position. Unfortunately market values change over time. 

Demand for skills, company budget and inflation are all the reasons why they can't stay the same. New hires negotiate based on new values. 

So, it isn't you, it's the economy. 


2. Salary increment < new hire

Raises for long-term employees are usually small and steady (3-5%) every half a year, or every year. They unfortunately do not match or keep pace with the market growth. 

Therefore, you can get left behind even if your experience exceeds the new hire. 


3. Ever heard of salary compression?

Companies get worried when salary compression happens. For instance, when the new hire gets more than the experienced employee. However, raising the salary for one, means raising the salary for all. 

Thus, salary growth remains small and insignificant. 


4. Emotions

A new hire has no strings attached, a loyal employee does. 

Asking for more, may feel uncomfortable or the fear of seeming ungrateful. Due to this, many long time employees stay silent and not ask for the more they think they deserve. 

God forbid a girl doesn't cause chaos right?


5. Some companies are just not it

Despite it all, you should still be paid for your good work, your loyalty, your milestones, and more. 

Nevertheless, in an imperfect world like the one we live in, these accomplishments often gets lost in the mix of a company prioritizing their business and making money. 

It just isn't fair, but most of the time, most of life be like that. 


The solution? Be bold, be brave, be honest. Talk to your manager/supervisor. It's may be worth all the effort. 


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ellephant

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