6 ms·
My favorite scam I've seen lately has been the "We're gonna give you a promotion with no salary increase, see how you do, and then discuss a pay raise after X m
by sharkweek 8y ago
My favorite scam I've seen lately has been the "We're gonna give you a promotion with no salary increase, see how you do, and then discuss a pay raise after X months! You should be grateful for this opportunity!"
And then of course in six months, the pay raise is basically a small bump, versus what one might be paid if brought in as a manager/higher title.
- draw_down 8y agoThis is why people say you make your money going out the door.
- toyg 8y agoYou are supposed to take the promotion, update your linkedin, and find a real position with that title elsewhere for more money.
- ManFromUranus 8y agoThis is the right answer, they are simply making you more marketable, and you are now gaining "New Position" XP
- maxxxxx 8y agoI have heard that before. Immediately after a promotion it's best to use the new title in a job search. Pretty sad.
- hkmurakami 8y agoThis is basically what every McKinsey Engagement Magager does after 1 year on the job, and the firm is happy with it.
- ucaetano 8y agoThe difference is that McKinsey (and other consulting firms) rely on the network of alumni to secure new projects. So those people aren't (usually) leaving to a competitor, but mostly to a current (or possibly future) client. Same with law firms, auditing firms, etc.
- maxxxxx 8y agoThat's really good strategy. Is there another industry where you could apply this method? Hire young people for cheap and then let them move to future customers for high salaries. I guess it may work for somebody like Oracle: Hire young devs and after a few years let move to customers who pay them well as experts who then buy Oracle products.
- ucaetano 8y agoPretty much any professional services and consulting. > Hire young people for cheap and then let them move to future customers for high salaries. Well, consulting salaries are usually significantly higher than industry salaries. So it is actually the opposite. People move out of consulting because of the stressful hours and the up-or-out culture. Additionally, as you progress, the work goes from IC to project management then to client management (as a principal) then to sales when you become a partner. They tend to make less money when moving to industry (not always) and work fewer hours, and travel less too.
- seem_2211 8y agoMcKinsey probably have the most analyzed, overdeveloped and optimized system to run a business in the world. Bring people in on the cheap (partly because they're being paid in prestige), fly them around the country on miles you've prebought, work them really hard for a few years, and nurture them as they move on as future customers seems to be working out pretty well for them.
- bonsai80 8y agoI've had the privilege to have the proactive version of this discussion: A discussion was had about an employee and then the question was asked "If they left, how much would we pay to hire someone the replace them? Let's give them a raise to that amount now and avoid that mess."
- croon 8y agoThat sounds like a Sorkin production where everyone is unrealistically smart and rational.
- numbsafari 8y agoPerhaps left unsaid is that the companies accrue the benefit of a long-tenured employee, savings on hiring and searching for a replacement, and saved opportunity cost from the time frame where the individuals job was left unfilled. Win-win.
- asdfman123 8y agoI would be happy with an empty title for that reason. I'd gladly take a lower salary and work as a "senior dev" for a year, then apply to senior dev positions making 50% more.
- s73v3r_ 8y agoYou say that, but you'd be upset about not getting the pay bump that you know your fellow senior devs did, and you'd be gone in 3 months.
- asdfman123 8y agoOnly if I could get that higher paying job sooner. Either way it would be a win for me. I'm not sure if it would be one for the company, though.
- s73v3r_ 8y agoBut it'd be more of a win for you if the company would just give you the pay bump as well. And it'd be a win for the company because they wouldn't have you leaving.
- s73v3r_ 8y agoBut wouldn't the promotion come with increased responsibility, thus keeping you too busy to interview?
- deleted 8y ago[deleted]
- vonmoltke 8y agoOne nice thing about working at a place that doesn't have levels is that this crap doesn't happen.
- deleted 8y ago[deleted]
- jmull 8y agoNot a great scam because you give the employee both the means and motive to leave for a better paying job down the street. Then you'll either have to repeat this draining process or pay a reasonable salary after all, only now you'll have a less experienced person in place for a while.
- GFischer 8y agoI have been on the opposite side.. they'll give me pay raises, expanded responsibility but never a promotion. So if you do a LinkedIn search you'll think I'm a run of the mill programmer and they'll contact me for positions paying 1/3 or 1/4th of my current salary.