3 ms·
> If the new hire is worth 10% more, then the employer will be able to justify that. If you have established salary bands, then you cannot justify offering som
by AmericanChopper 7y ago
> If the new hire is worth 10% more, then the employer will be able to justify that.
If you have established salary bands, then you cannot justify offering somebody something outside of that range. That defeats the entire purpose of having salary bands to begin with, and not complying with them would be lying to your employees. What salary bands are, is a levelling mechanism. The answer to “why does x get paid more than me?” should be “because for some particular reason we decided x was worth more to us than you”. With the levelling mechanism, you have less options for paying people what they’re worth, instead you simply decide that everybody will get paid +/- a few % of whatever the average value of an employee in that role is, regardless of their contribution.
- sokoloff 7y agoIf those bands are more narrow than the distribution of talent/contribution at any given level, then you’re very likely to shut yourself out from the top contributors. In my experience, bands are always vastly more narrow.