By Debbie Nicholson, Think-to-INK!
Let me guess; you have no clue why. Right?
Okay, here’s a hint. Do you give new employees better salaries than existing employees?
I realize it is not the intention to short-change long-term employees. However, the long-term employee sees it as disrespectful and insulting, thus, betrayal. It is naïve to believe that the long-term, loyal, current employee will not discover the new employee is paid more for the same position.
I know, I know. It’s tough hiring new employees – their asking price could be 9% to 10% higher than expected –it’s hard to swallow!
Let’s look at how the betrayal of long-term employees affects the organization:
- Meaning and purpose (a.k.a passion) begins to diminish
- Tasks now take longer to complete
- Collaborative teamwork becomes quiet
- Suggestive cost-saving measures have ceased
- Attitude becomes complacent
- The previous attitude of “work until the project is complete” is clocked out.
- Tardiness and absenteeism become a new pattern
- Quality assurance is no longer a priority
- Weekend work is turned down due to ‘personal reasons’
- Combative and argumentative conversations directly affect other employees
- Now, everyone knows the new employee’s salary
- Next, you will be hiring a replacement for your long-term employee - costing you even more
Your long-term employees are the folks that helped you possibly as a start-up and have been a huge component in growing your company where it is today. Don’t forget that they were the key to the foundation of your business adventure.
Now, it’s up to you to make it right! Maybe an HR audit is needed to identify glaring salary discrepancies between current employees and new employees. Closing the gap is essential for retaining staff.
My grandmother used to tell me, “You get what you pay for, and then you really get what you paid for!”