Rate of Pay and Raises

Well, if you capped out, and the others didn't, it sounds like you are making more than them (granted not much). But, if they are raising the entry pay, then they should be raising the entire pay range, and what the cap is. If they are truly wanting people to stay, then they shouldn't make their employees feel dispensable, and that's what it seems like, from what you described. Sounds crappy- sorry...

In general two things go into raises once you have been in the firm, semi cost of living and earned.

They can't pay you whatever they want, there is always a cost pool. All raises must come from that pool. To get a larger chunk of that pool you must set yourself apart.

Other than that the only way to earn more money is to move from firm to firm.

I hate to say it but loyalty alone will get you nowhere, especially if your goal is to be just like everyone else and do the same job. Especially in a high turn over job, being like everyone else is not special.

I can say within our firm there are people that have been there ten years and they are paid less than new hires. Once in an while our office manager takes a look at the differences and bumps the older employees more than the new hires but they will never make as much as a new hire because they only do what they must, they are lazy and unimpressive.

After reading your what happened: You need to understand that inflation is outpacing raises, big time. What I think people don't realize is wages are part of inflation. Look at what you make then divide your raise by your wage, if that is lower than around (haven't looked up inflation lately) 4% you got yourself a pay cut. Your real wage has decreased. Someone entering your workforce is hired at the current rate.

It didn't used to be like this. In the past you received cost of living plus, that hasn't happened in middle and lower class (non professional) jobs for years. As such a new hire will make more than an older employee unless they have received promotions or found new skills.

Oh, if you haven't received a raise in more than a year adjust your math accordingly. I know this sucks, I thank god I went to a business school and understand what happens behind the scenes. Still even knowing the why doesn't get you a raise unless you can convince an employer you are worth it.

If you've been there longer, you should not be making less. They are paying you less because they can & are getting away with it. I've seen this happen over and over again. Unfortunately the only way to fix this is to ask for the raise and be prepared to leave if your demands aren't met. A smart company will give in at the 11th hour and give you the raise. A company not worth sticking with will watch you walk out the door.

That said, yes, it could be possible to make the same as new hires, especially in a high turnover situation. First, some positions do cap out - there gets a point where there are so many qualified people willing to work at that rate that there is no need to pay more, regardless of time put in. I have several people in clerk positions that after 15 years we just could not raise anymore. They had to contribute a higher skill level to earn more. Second, they've found they have to pay more to get people in. There is no need to do big raises because they know people are just going to leave. And, getting back to point one, if you hire someone and pay them too much money on day one, there is really no where to go from there.

Good luck!

you should already have been making more because you probably have gotten raises in the time you've been there, right? (which is fair). and raising the base pay is logical as time goes on, starting pay has to go up at some point, (which is also fair). so to make it fair across the board, they add extra to everyone. i think they tried to be cheap with you, and you spoke up, and they made it right.

i think what they did sounds pretty typical. is that what you're asking?

Yep... Happens all the time that new hires make more than old hands.

Also that subs make more than sups.

It's all about contract negotiation. (My ex found out at one point he was making 40k less than his subordinates. When he went in, they offered him a 10k raise. Nope. Time to move on. He got 80k in salary increased by changing jobs 3x that year, then can back to company #1, got ANOTHER 'raise' plus some fat bonuses in his new contract. If they'd just paid him the 40k to begin with they could have saved themselves a ton. But in IT, one usually doesn't get raises. One changes jobs for better contracts. (Also changing jobs every 6mo-1ywar means one gets VERY good at negotiating contracts.

As you perform your job for your company you gain experience in that job. As you continue to do a good job you should be rewarded. A person just starting out does not have the same experience as you and therefore should not be paid as much.

In a perfect world everyone who worked for a company would have a printed pay scale. You've been here XX then you get a raise to XXX. If you take any classes to improve your education then you get a pay raise of XX if you make an "A" in the class, Xx if you make a "B", and xx if you make a "C". If you do not pass the class with a "C" or better you will not be eligible for a raise.

The reality is that most people don't stay with companies for a long time any more, for this very reason. You can usually negotiate better benefits, higher salaries, by job-hopping, and it's pretty common. Most employers don't even see it as a bad thing on a resume any more, because it's the new norm.

I'm with you. I think you deserve more. You've been there double the time the next level of seniority has spent there, and you should be compensated for your dedication and service. Unfortunately, compensating for loyalty doesn't pay for employers. Most people are expendable to them.

Have you looked to see what options are out there for you?