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Ask HN: Why do companies pay new hires more than long time employees?
41–47 of 47 posts
Re: Ask HN: Why do companies pay new hires more than long time employees?
#42If they don't, the new hire goes to another company that does. Here is another, but related question: why don't long time employees look for a better paying opportunity?
Because it's a red flag if you leave before 1 year. So if you figure out in your 6th month that you were were getting underpaid well tough luck because you have endure 6 more of the same crap or your next job will take a lot longer to find especially in this market.
Re: Ask HN: Why do companies pay new hires more than long time employees?
#43If they don't, the new hire goes to another company that does. Here is another, but related question: why don't long time employees look for a better paying opportunity?
There are a number of reasons why a job in the hand might be worth two in the bush. Each situation is different though so ymmv.
Firstly there's more to a job than just pay. Some places are better to work at than others. Perhaps it's team dynamics, geographic location, remote or office, good or bad office etc.
Some financial perks improve with length of tenure.
Long-termers tend to have more job security than newbies. First in, first out when positions are cut.
Fewer, or more, responsibilities. Things like being on-call over weekends.
Seniority often comes with non-financial perks that aren't monetary, but make life better. More flexible working conditions. Better parking. Work from home, and so on.
None of which stops people discussing pay with their manager. Which is a Lot easier to do than switching jobs.
Re: Ask HN: Why do companies pay new hires more than long time employees?
#44Because they are competing with each other at current market rates.
But you can make this work for you. Give yourself a raise every 2 years or so.
Re: Ask HN: Why do companies pay new hires more than long time employees?
#45Because they can.
What else possible answer did you expect, i sincerely wonder?
Re: Ask HN: Why do companies pay new hires more than long time employees?
#46I answered this question here last month: https://bloomberry.com/why-new-hires-often-get-paid-more-tha...
Basically it comes down to a few reasons:
1) Hiring budgets are always > than budgets for raises
2) HR and recruiters are incentivized to hire new people rather than retain current ones
3) Employers overvalue experiences obtained elsewhere
4) Nobody really wants to solve the problem of retention because it's a deep-rooted issue with no easy fixes (unlike paying someone new a lot of money)