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new salary ranges
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We are implementing new salary ranges and I am fairly new as the HR manager and am having a hard time with a couple of things. First, because we are increasing our starting pay and I am concerned w
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new salary ranges

posted at 6/15/1999 5:15 PM EDT
Posts: 12
First: 6/15/1999
Last: 9/21/1999
We are implementing new salary ranges and I am fairly new as the HR manager and am having a hard time with a couple of things.

First, because we are increasing our starting pay and I am concerned with the equity issue of current employees. Should their pay also be increased - is it a problem if a new person is brought in at the same pay as someone who's been with us a year?

Also, what if there's an employee who was hired several years ago and has received large increases in salary. Already, he will be above where I'll be capping the salary range. Any advice on how to handle a situation like that? I'd really appreciate some advice!

new salary ranges

posted at 6/15/1999 6:00 PM EDT
KSD
Posts: 58
First: 6/14/1999
Last: 2/20/2006
Unfortunately employees talk about their salaries. When ever we have had an increase in starting pay, we usually increase current employees who are not at that level. The company I worked at before did not always do that and there was a lot of friction and harsh feelings among the employees. By changing the policy, things went smoother but many employees who had been with the company for a long time did not understand why new employees were starting at a higher rate then what they started at.

new salary ranges

posted at 6/15/1999 7:46 PM EDT
Posts: 323
First: 6/15/1999
Last: 9/9/2011
Why did your company decide to increase "starting" pay? To be more competitive in recruiting?
Why not a cost of living increase that would raise everyone a certain percentage? This would seem the most equitable approach. No one should feel slighted.

new salary ranges

posted at 6/16/1999 6:07 PM EDT
Posts: 12
First: 6/15/1999
Last: 9/21/1999
I like the idea of the cost of living increase. That's 3%, right? Or does it differ depending on where you are located? We implemented the increase last month. There have been some comments, but not many from existing employees. Do you have any advice on the person who is already capped on the new salary range? Can you make exceptions?

new salary ranges

posted at 6/16/1999 7:13 PM EDT
KSD
Posts: 58
First: 6/14/1999
Last: 2/20/2006
I have never had this problem, but I have known of some companies that will give employees who have "Maxed" out bonuses, an extra sick day, personal day, vacation day, etc. Some way to reward them without increasing their pay. Others I have heard of have redefined departments, job descriptions in order to give an employee extra responsibility and bump them into a higher pay grade.

new salary ranges

posted at 6/16/1999 7:34 PM EDT
Posts: 323
First: 6/15/1999
Last: 9/9/2011
Angie...
KSD gave some good ideas. I have also not encountered the problem of someone reaching their salary cap. We do redefine job descriptions from time to time in order to give additional responsibilities along with additional pay. This only occurs when a position becomes vacant and there is a need to cut expenditures (we are non-profit) and/or to attract/compensate higher levels of education or experience. As for amount of COLA, I can't claim to know what is customary, etc. Ours are determined by what we can secure from funding sources...we have never gotten as much as 3% since I've been here, but we are probably not considered a high cost area... waaay down south.

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