When new hires get paid more, top performers resign first
1–10 of 225 posts
Re: When new hires get paid more, top performers resign first
#2Sounds plausible. The obvious Q though is - were the researchers able to identify a causal effect? Or could it be that the highly-paid new hire is a sign of the market being hot, so the top performers are able to get new better offers? i.e. would they have left even without the new hire?
Re: When new hires get paid more, top performers resign first
#3I’m in the unique situation where I’m hiring my replacement after having made a promotion. I know they will make (substantially) more than me. How would I negotiate a matching or superior salary?
Re: When new hires get paid more, top performers resign first
#4Used to be a high performer at Big Tech. Found out a coworker with less experience at the same level had $200k/year more in comp. I didn’t care about the money, I care about being taken for a fool.
There were additional factors, but I left and started my own company within three months and nobody in my old team has anywhere close to my experience.
Re: When new hires get paid more, top performers resign first
#5In the late 90s I worked at a place that recognized the issue where they were having problems bringing people onboard so they offered more. But in our department they also did a yearly "adjustment" across the board to make sure they avoided paradoxical issue of new guy / longtime hire guy unexpected pay disparity.
In that case the new guy getting paid more or close to the same was a largely non-issue as you knew you'd get adjusted. It was arguably good news for you.
Re: When new hires get paid more, top performers resign first
#6I’m in the unique situation where I’m hiring my replacement after having made a promotion. I know they will make (substantially) more than me. How would I negotiate a matching or superior salary?
Competing offer. Go interview.
Re: When new hires get paid more, top performers resign first
#7I’m in the unique situation where I’m hiring my replacement after having made a promotion. I know they will make (substantially) more than me. How would I negotiate a matching or superior salary?
Leave.
Re: When new hires get paid more, top performers resign first
#8Can someone who understands economics better than me explain how the workforce can "shrink" in 2024? The number of people isn't going to dramatically decrease, are just a ton of people retiring?
Or does this imply that there's going to be a reduction in the number of available jobs?
Re: When new hires get paid more, top performers resign first
#9This is one of the reasons I loved Netflix. Each year they would say "to get new people in the door with your level experience, we had to offer them $XXX. Therefore we are raising you to $XXX."
Some years I got 25%+ raises. Netflix understood this like no one else.
Re: When new hires get paid more, top performers resign first
#10Makes sense. New hire gets paid a lot, everyone updates on what they should be getting paid, top performers have the best chance of getting jobs elsewhere and they now know they should be getting paid more.
Seems like this consideration makes hiring new people much more expensive. Either you pay everyone (or just top performers) more or pay the new hires less and likely attract a lower tier of new hire which has its own cost.
Employees should do more to share their pay so everyone knows how much everyone else is getting paid. I mostly think there should be a law mandating this - every employer with more than 100 employees must publish summary statistics on wages at every job category.
I recall reading that CEO pay skyrocketed after a law intended to reduce CEO pay required that CEO compensation had to be disclosed. It had the opposite effect and CEOs started to make much more. Seems like we should apply that same thing to the average worker.