There is an increasing pay difference between new and established workers because to pay compression

For quite some time, business owners have understood the importance of customer loyalty. There have been a lot of changes in retail loyalty programmes over the years, but the fundamental principle has remained the same: recurring purchases are essential for most companies.

Similarly, companies are aware that retaining good employees is critical to their success. Employee loyalty has a wide range of advantages, from boosting customer satisfaction to boosting efficiency and output. Because of this, why was a recent post on social media about thanking current staff so controversial?

According to Robert Sweeney, CEO of Facet and a former Netflix employee who just left the firm, Netflix recruited someone fresh into the same role with a better wage after only a few months of Sweeney’s employment.

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Sweeney has continued this method at Facet, where he worked as a producer. “”””””””

It’s a sign that the market has risen and your present workers need to be given a raise to keep up.” Make sure loyal workers aren’t penalised for remaining with you by underpaying them.

That seems about right, doesn’t it? As you may imagine, the response was a bit of a mixed bag. A few of the company’s long-term workers chimed in with their thoughts on the growing costs of life. While some argued that organisations need to pay above market rates in order to attract talent, others said that they would be at a competitive disadvantage to those who did not employ during this period of difficulty in the job market.

Resentment becomes stronger by the day

The truth is that committed workers get demotivated when they see a novice come in on a higher income, particularly if it’s in a post with less responsibility. If you’re fortunate enough to obtain a 3% raise each year, you’ve worked hard for it. In such a setting, resentment may develop and intensify very fast.

According to a Jabra analysis, 48 percent of the workers questioned since the epidemic started had contemplated shifting employment. With 17,000 IT professionals put off in May 2022 alone, we’ve gone from the Great Resignation to the Great Layoff within the span of a single year. To far, Microsoft has polled over 30,000 worldwide employees and determined that 40% of them want to change employment by 2022.

There is an abundance of qualified candidates out there for firms looking to fill remote positions, especially. And at the same time, many corporations are operating carefully due to inflation, interest rate rises, and the coming recession.

As a result of these factors, economists refer to this phenomenon as “salary compression.” In order to recruit new employees, corporations are increasing their present wages, but they’re also increasing the gap between the two.

Your wage is supposed to be based on how well you’ve done in the past, but this isn’t always the case. Job seekers have long recognised that the best position to bargain for a higher compensation is as a new hire. If you feel unappreciated and demotivated at work because to income compression, it may be time to look for a new position.

Make a list of the things you value most in a new position and prioritise them according to the following criteria: time flexibility, compensation, title, benefits, supervision, advancement, hours, and the purpose and culture of the firm. TNW’s House of Talent Job Board is a good place to start. There are a lot of companies out there that will pay you well as a new employee. Check out the next three for a closer look.

The Collective Vestiaire

Vestiaire Collective, the world’s leading online marketplace for pre-owned apparel, is looking for new staff in Paris and Tourcoing. Senior Worldwide Affiliate Manager (F/M/D): The organisation is looking to hire a somebody to manage the global affiliate programme, direct acquisition relationships, and nano influencers (F/M/D). In addition to a respectable salary and benefits package, the job description includes considerable investment in learning and advancement.

eBay

In addition to the US, eBay has positions available in London, Amsterdam, and Paris. It’s a great opportunity for an experienced Java software developer who wants a good income and outstanding perks. Working from home is supported by eBay, which is based in London. Successful candidates will join eBay’s shipping agile teams, working with Java/Spring throughout the whole eBay stack, including internal and external APIs, systems, services, and tools.

UiPath

UiPath, a pioneer in robotic process automation, helps firms decrease expenses and operational mistakes by automating repetitive tasks. The company is looking for a Product Manager – Task Mining in Eindhoven to help develop the company’s vision and strategy for Task Mining solutions. This position entails working directly with in-house design and data science teams to plan and implement new product features.

Interested in collaborating with some of the largest and most forward-thinking companies in the industry? Now is the time to check out the House of Talent Job Board and save the URL for future reference.