“The Market Has Changed”: Company Claims They Can’t Afford Raises Then Gives A New Hire $15K More

Spread the love

You were probably told from a young age that if you’re a loyal, hard worker, your efforts will surely be rewarded. You’ll be given promotions, raises and the respect of your employer. And you’ll never have to worry about job security! Unfortunately, however, that does not reflect the current job market. And the days of working for the same company for decades are long gone, as companies have proven time and time again that they don’t value their loyal workers.

One woman who learned this lesson the hard way recently reached out to Reddit to share her story. Below, you’ll find all of the details about why she refuses to train her replacement, as well as some of the replies invested readers shared.

This woman has always been told that her company couldn’t afford to give her a raise

Person working at a computer with design software, illustrating company claims about market changes and salary raises.

Image credits: Getty Images / Unsplash (not the actual photo)

So she was shocked to find out that her replacement would be earning significantly more

Text post about employee refusing to train replacement after company denies raises but pays new hire significantly more.

Text in black font on white background describing a resignation notice due to a higher paying job.

Text on screen describing a boss asking an employee to train their replacement despite company claims it can’t afford raises.

Person holding a black coffee cup with latte art, illustrating the market has changed and company salary claims.

Image credits: Raymond Petrik / Unsplash (not the actual photo)

Employee discovers new hire with less experience gets $15K more despite company claim they can’t afford raises due to market changes.

Text excerpt about employee refusing to train new hire after company claims they can’t afford raises but gave a new hire $15K more.

Young woman with curly hair in a striped shirt looking thoughtful, illustrating company claims on raises and new hire pay.

Image credits: diana.grytsku / freepik (not the actual photo)

Text showing frustration about not feeling valued and questioning going above and beyond for a company in a professional setting.

Image credits: Guscioni-Mibida

The fastest way to get a salary increase is often to change companies

The idea of paying a new hire more than someone who’s been at the company for years sounds absurd. Shouldn’t the seasoned veteran be rewarded for their dedication? Well, unfortunately, companies don’t always see it that way. There’s a reason why many experts recommend changing jobs every three to five years

Raises aren’t always guaranteed, even if you’re loyal to a company for many years. In fact, a Monster survey found that over a quarter of workers haven’t received a raise in over a year, and 18% of workers polled had never received a raise. Meanwhile, Resume Worded reports that job switchers tend to see between a 5% and 15% salary increase when they start a new position.

So why are new hires being paid more? Well, Bloomberry says there are a few explanations. First of all, your employer might actually want you to leave. Some Big Tech companies even fire the bottom 10% of their workforce every year to make room for more skilled employees. By refusing to give you a raise, your company might be nudging you towards the door.

Another potential explanation is that the company might have a capped budget for salary raises. But their hiring budget might be even larger. At the same time, HR often doesn’t realize the long-term impacts that come along with paying new hires more than the people they’re replacing. It might make sense on paper, but the loss of experience and skill can come back to bite them.

There’s also a common misconception that experience collected at other companies is somehow more valuable than experience garnered in house. New hires are attractive to companies because they bring unique perspectives to the table, but that doesn’t necessarily mean that they’ll be a good fit.

Two professionals shaking hands over a desk with documents, illustrating company claims about raises and new hire salary.

Image credits: Tahir osman / Unsplash (not the actual photo)

But paying new hires more than veterans isn’t always a smart business move

While employers are prioritizing attracting new talent, Harvard Business Review warns that paying replacements more is a great way to get top performers to resign. When workers realize that they’re not being valued, they’ll start seeking out new opportunities. After all, nobody wants to miss out on a higher salary if they might be able to find one elsewhere.

Of course, this can also take a huge toll on morale within a company. Veterans might be bitter about new hires earning more than them, and as more tenured employees begin to jump ship, the company loses out on valuable expertise. Plus, if everyone in the office is a relatively new hire, they might not have the necessary skills and knowledge to keep the company afloat. 

There are steps companies can take to prevent these issues from arising, though. Hppy recommends carrying out regular payroll audits to ensure that employees are being paid fairly. It’s also a good idea to have open conversations about pay structure. 

Employees should understand exactly why they’re earning their current salary. Meanwhile, adjustments should be made when necessary. And workers should feel comfortable expressing any concerns they may have about their wages. It’s better to address these issues than to suffer in silence, especially if someone with 5 years less experience is out-earning you. 

We would love to hear your thoughts on this situation in the comments below, pandas. Do you think this woman made the right call by refusing to train her replacement? Then, if you’re looking for another Bored Panda article discussing similar workplace drama, look no further than right here.  

Many readers supported the author’s choice

Screenshot of a Reddit thread discussing company claims about market changes and pay raises for new hires.

Reddit comment about company pay disparity as new hire gets $15K more despite claims they can’t afford raises.

Employee complains about pay disparity as company claims they can’t afford raises but pays new hire $15K more.

Screenshot of a social media comment advising to complete two weeks before leaving for a higher salary.

Text comment about changing resignation timing, highlighting company market changes and salary raise discrepancies.

Reddit comment advising to take it easy and communicate with clients during a transition in a changing market situation.

Reddit comment discussing company claims they can’t afford raises but gave a new hire $15K more.

Text post discussing company claims about not affording raises while giving new hires higher salaries.

Screenshot of an online comment sarcastically noting a company giving a new hire $15K more amid claims they can’t afford raises.

Screenshot of a Reddit comment stating refusal to train a new hire after company claims they can’t afford raises.

Comment from FRANPW1 expressing frustration about company raises and congratulating a new hire on their higher salary.

Comment on a post about company pay gaps, stating enjoy vacation and PTO before starting new job with higher salary.

Comment discussing company claims about affordability of raises versus new hire salary increase in a forum thread.

Reddit comment discussing company claims on raises versus new hire salary increase of 15K amid market changes.

Screenshot of a social media comment discussing company claims on market changes and wage disparities with new hires.

Screenshot of a Reddit comment discussing management issues and staff retention amid market changes and paycheck disparities.

Comment on Reddit post discussing company claims on raises and new hire salary differences in a casual tone.

Screenshot of a Reddit comment praising someone for success at new employment amid company claims about raises and new hire salary.

Commenter advises refusing unpaid training for replacement, highlighting costs amid company claims it can’t afford raises.

Screenshot of a forum comment discussing company claims about affordability of raises and giving a new hire a $15K higher salary.

Screenshot of an online comment saying Good on you, responding to a discussion about company pay raises and new hire salary differences.

Screenshot of a user comment discussing company claims about market changes and salary raise discrepancies.

User comment discussing companies not raising wages for employees while paying new hires more amid changing market conditions.

However, some warned that it’s not a great idea to burn bridges when leaving a company

Screenshot of a forum comment discussing company pay raises and new hire salary increases in a workplace setting.

Employee discusses company claims they can’t afford raises while new hire receives a $15K higher salary increase.

Text post on forum discussing company claims about market changes and pay raises versus new hire salary differences.

Text excerpt discussing company pay raises and reputation concerns, highlighting market changes and salary disparities.

Screenshot of a user comment discussing unfair company pay practices and training issues amid market changes.

Text explaining job advice, highlighting company claims about market changes and new hire salary increases.

Comment discussing perceived hypocrisy in company raises and new hire salary differences amid market changes.

Text about holding grudges at work, emphasizing kindness, professionalism, and networking in a changing market environment.

Screenshot of a comment explaining no one gives raises out of the blue amid company claims on market changes and pay disparity.

Screenshot of online comment criticizing unprofessional behavior related to company raises and new hire salary disparity.

Comment discussing company pay deals and raises, highlighting frustration over new hire receiving higher salary.

Comment about company claims on raises with new hire receiving $15K more in a workplace discussion.

from Bored Panda https://ift.tt/G6PNAB9
via IFTTT source site : boredpanda

,

About successlifelounge

View all posts by successlifelounge →