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Employee makes too much money
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Employee makes too much money
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
I have an employee applying for a new position in a different department. The new position would pay slightly more but offers better pay potential.
The problem is that I would need the current empl
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Forums » Topic Forums » Legal Forum » Employee makes too much money
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Employee makes too much money
posted at 8/22/2011 8:47 AM EDT
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Posts: 36
First: 6/1/2006 Last: 8/22/2011 |
I have an employee applying for a new position in a different department. The new position would pay slightly more but offers better pay potential.
The problem is that I would need the current employees in the new department to train him on the specifics of the department (nothing excessive just things relating to their specific software etc.) This employee is topped out in his current position and makes more money already than those in the new department. Although the applicant is qualified and I have no doubt he would excel at his new position it would in fact be much easier for me to hire from the outside to avoid the stresses of putting a rookie employee into a new department making more money than anyone currently there. I know the moral implications of this situation but I can't help but wonder if there aren't any legal ones. |
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Employee makes too much money
posted at 8/22/2011 9:03 AM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
Do you wish this high potential person to succeed (move up) in your organization or is he some kind of threat?
If he is no threat to anyone don't be concerned with the compensation. If he is a real star and can contribute in higher and higher levels he will be a sound investment for the company. Otherwise he will be making this contribution somewhere else. Have a conversation with both your senior management and HR to map out a specific development program and lets see how high he can go before topping out. Remember that the senior managers all started out a lower positions somewhere and progressed. Be part of that process and it may have rewards for you as well........ |
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Employee makes too much money
posted at 8/22/2011 11:16 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I realize you are asking from a legal perspective, but I am a bit confused on your post from a compensation perspective.
Because you state he will be offered a bit MORE than he is currently making. (did you mean LESS?) Is he coming in as an equal/same level? If so, why will he get paid more than those currently in the position? Is it because he is already making more? Does his prior experience with the other department make him more valuable than those in the dept he is moving to? If your internal salaries haven't been keeping up with market, then you are risking the employees leaving because the market will pay more. And you will be in exactly the position you are in now with pay equity issues. If you did mean LESS, then setting out a career/growth path is the way to proceed, so the employee can see the future potential of switching --- to gain other experience, etc. Even if it means a current pay decrease. |
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Employee makes too much money
posted at 8/22/2011 12:19 PM EDT
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Posts: 6
First: 6/25/2011 Last: 8/30/2011 |
I'll try to clarify:
His pay is only higher than theirs because he has progressed more steps than they have. When they top out they will make more that he does now (if I don't promote him.) for example: one job ranges from say: 40,000 to 49,000 vs. 41,000 to 50,000 an employee can be topped out on the lesser pay scale and still make more than someone at midpoint on the better payscale. They will eventually catch up but it's really a issue of advancing through the payplan steps. Like I said, I realize the moral implications of this but to fall back on a cliche: If I can fire someone just because I don't like the color of their shoes... Can I withhold a promotion as well? |
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Employee makes too much money
posted at 8/22/2011 12:26 PM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
You can do what you ask as long as it not being done in a way that has disparate impact to staff that are protected under title VII.
I would be asking myself these questions: 1. Have we ever done this before? 2. Do we care if we lose the person that is being bypassed? 3. Is the person being held back in a protective group? If the answer to this question is yes make sure you review your strategy with your legal counsel and HR. Not saying you can't proceed, just proceed understanding all the potential impacts. |
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