Pay Rises - How Do They Work Where You Are?

redundantmortgage

A simple way to look at it is you have 2 people with no experience who start the same job at different companies on equal pay. After a year they both get equal pay rises to reflect the years experience they now have.

Then there is a vacant position at Company A which requires 1 years experience. The only way the person with a years experience at Company B is going to move to Company A is if you pay them more money than they are currently getting. 

Ath_Wat

redundantmortgage said:

A simple way to look at it is you have 2 people with no experience who start the same job at different companies on equal pay. After a year they both get equal pay rises to reflect the years experience they now have.

Then there is a vacant position at Company A which requires 1 years experience. The only way the person with a years experience at Company B is going to move to Company A is if you pay them more money than they are currently getting. 

Experience, of course, is not everything.  Many people will be better three weeks in than somebody else is ever going to get.  If you want the former type of employee, you have to offer them more money as everyone else wants them as well.

Paying all your staff the same regardless of ability is, in the society in which we live, a guaranteed way of getting poor quality staff.

redundantmortgage

Ath_Wat said:

redundantmortgage said:

A simple way to look at it is you have 2 people with no experience who start the same job at different companies on equal pay. After a year they both get equal pay rises to reflect the years experience they now have.

Then there is a vacant position at Company A which requires 1 years experience. The only way the person with a years experience at Company B is going to move to Company A is if you pay them more money than they are currently getting. 

Experience, of course, is not everything.  Many people will be better three weeks in than somebody else is ever going to get.  If you want the former type of employee, you have to offer them more money as everyone else wants them as well.

Paying all your staff the same regardless of ability is, in the society in which we live, a guaranteed way of getting poor quality staff.

Completely agree that experience isn't everything. Salary ranges though often saying depending on experience.

I wouldn't say paying the same is a guaranteed way of getting poor quality staff. The sad reality is there are very capable, hard working and loyal workers who employers take advantage of.

Sandtree

Ath_Wat said:
Paying all your staff the same regardless of ability is, in the society in which we live, a guaranteed way of getting poor quality staff.

If you look at the motivational theorists they place income as a hygiene factor... ie you get a bad result if you under pay people but over paying doesn't really increase engagement/motivation. 

If the regional average for an experienced hire was £50k and realistic top potential was £60k but a company decided to buck the trend and pay everyone £63k do you really think they'd be guaranteed of just getting poor quality staff even if they are outpaying everyone in the area? That someone would rather get £55k because they know the junior guy is on £45k than them both be on £63k?

Paying everyone the same doesn't mean it has to be at the bottom of the pay range... there is the company that pops up in the press occasionally where their staff minimum wage is £70k for everyone.

TBagpuss

No, paying eveyone the same doesn't have to mean paying eveyone at a low level.

However, if you pay eveyone the same but some people arewe in fact doing more,working harder or achieiving better results then those people are likely to be feel annoyed that their greater effort is not being rewarded, so you run the risk of losing the better / more productive empoyees because they don't feel appreciated.

Even if the blanket pay is high, then you may well find that there are issues with people feeling that they are getting the smae as other, poorter performers. They may decide that over all the benefits are good enough that they stay, but it may well affecct their motivation.

Takeaway_Addict

lincroft1710 said:

comeandgo said:

 Your example of pilots getting the same salary, how would you reward the one who goes the extra mile 

Wouldn't they overshoot the runway?

underated comment.

Greymug

In my company/industry no 2 people in the same role have the same salary. When you apply for the job, HR tells you the salary window, then it's up to you to negotiate your salary. This is based on experience, skills, if you have others offers on the table, how good you are at negotiating/bluffing....all these will lead to a salary closer to the top of the band.

After that, when you are in the job the main way to get a pay rise is to get a higher offer from a direct competitor and threaten to leave your current company if they don't match the offer or give you an even higher one.

I also worked in government and it's completely different: you have a salary band, when you join you start at the bottom of the band (regardless of experience) and every year they give you a pre-defined and not related to performance pay rise until you reach the top of the band. When you reach the top, the only way for you to get a pay rise is to apply for a more senior role.

Andy_L

Greymug said:

In my company/industry no 2 people in the same role have the same salary. When you apply for the job, HR tells you the salary window, then it's up to you to negotiate your salary. This is based on experience, skills, if you have others offers on the table, how good you are at negotiating/bluffing....all these will lead to a salary closer to the top of the band.

After that, when you are in the job the main way to get a pay rise is to get a higher offer from a direct competitor and threaten to leave your current company if they don't match the offer or give you an even higher one.

I also worked in government and it's completely different: you have a salary band, when you join you start at the bottom of the band (regardless of experience) and every year they give you a pre-defined and not related to performance pay rise until you reach the top of the band. When you reach the top, the only way for you to get a pay rise is to apply for a more senior role.

its changed in the Civil Service. Now you start at the bottom of the band and then every year they don't give you a pre-defined and not related to performance pay rise. The only pay rise you get is the annually negotiated cost of living one. The only way for you to get a pay rise is to apply for a more senior role

Greymug

Andy_L said:

Greymug said:

In my company/industry no 2 people in the same role have the same salary. When you apply for the job, HR tells you the salary window, then it's up to you to negotiate your salary. This is based on experience, skills, if you have others offers on the table, how good you are at negotiating/bluffing....all these will lead to a salary closer to the top of the band.

After that, when you are in the job the main way to get a pay rise is to get a higher offer from a direct competitor and threaten to leave your current company if they don't match the offer or give you an even higher one.

I also worked in government and it's completely different: you have a salary band, when you join you start at the bottom of the band (regardless of experience) and every year they give you a pre-defined and not related to performance pay rise until you reach the top of the band. When you reach the top, the only way for you to get a pay rise is to apply for a more senior role.

its changed in the Civil Service. Now you start at the bottom of the band and then every year they don't give you a pre-defined and not related to performance pay rise. The only pay rise you get is the annually negotiated cost of living one. The only way for you to get a pay rise is to apply for a more senior role

Ok thanks so question is: how do you get to the top of the band?

strawb_shortcake

My part of the CS the grade/function has a base rate and then yearly pay rises are based on performance. 
If the new proposed pay structure is accepted and implement new starters will begin on the 2023 base rate and effectively have the potential to earn more than existing staff