October 31, 2014
How do we manage a disparity in pay levels? We are raising pay rates for employees to be more in line with our competitors. However, this hasn’t eased our recruiting difficulties very much. In addition, management is considering raising pay yet again for new recruits, but we are understandably concerned that such a move would make pay for new workers nearly equal to employees with two to three years of experience. This would also affect the pay of people with even longer tenure. Obviously, whatever we decide will affect both our retention of high performers and our recruitment of top talent. We don’t want to get hung up on this issue, but feel caught in the middle. Is there a way out that satisfies all sides?