Does this pay rate make sense?

Question

My employer just gave me a pay increase from 10 to 11 an hour. I was happy because I thought it was a raise based on my performance. It turns out that it was the new hire rate that they start people at. I am annoyed because they started someone new out at that rate with no experience or skills and I am having to deal with training her. I on the other hand, am certified in my job title, and have two years exp. Do most employers do this or am I getting screwed over? I am a good employee and volunteered and paid to get my certification.

Answer 1

They didn't have to give you a raise at all. They could have hired the new person at 11 and left you at 10. It may not seem fair, but the employer can do that.

If you feel you are a valuable asset to the company, sit down with the employer and talk to them and maybe even ask for a raise. If they value you, they may give you the raise.

Answer 2

I've found that this is very common....there are many companies who have to keep raising starting pay to keep up with the rising wages in the job market. Some of them make sure their current employees are raised up to meet or exceed the starting wages, and some are neglectful. Many years ago, I actually was in a position where I had to train new employees, who had no experience, who made significantly more than I did. I presented my case successfully to management and was raised up signficantly to exceed the entry level employees. Despite this, the best way I have found to get the biggest raises is to become the new employee at another firm....to take your experience and certifications and present them elsewhere, where if you have good experience, you will command the starting wage plus. Although I always commanded the top raises when I stayed with a job, I always found that I was usually able to get at least a 15% increase by switching jobs, compared to 6 or 7% by staying in a current position. You can't switch jobs frequently, but when you become the big fish in a little pond, you can often get a very substantial increase by going elsewhere. There are companies that recognize this, and will give big, fat raises just so they are sure to retain you, but if you're not in one of those positions, consider moving on.

Of course, much of this is dependent on the economy, the industry you're referring to, how the company is doing and your skill set. Don't use my figures as a guideline. Examine your own situation and job market. Check the paper for similar positions and salaries and see what's going on. Knowledge is power. Knowing other people's salaries is always a bad thing because it always creates discord. Guard your salary with your life.