What employers should do when market pay doesn't align with the pay of current staff

It happens to every organization, and is hard to avoid: you hire for a position you need to fill and the market pay is higher than what you pay your current staff in a similar position. It puts you and your employees in a tough spot and seems completely unfair--and it is!
What is an employer to do?
In this episode of Transform Your Workplace, Lacey Partipilo and Brandon Laws of Xenium discuss why pay compression is damaging to organizations and what employers can do about it.
Learn more about compensation planning and pay equity: www.xeniumhr.co...
--
Please note that the content in this video is intended to provide general information about the subject matter covered and is provided with the understanding that Xenium is not rendering legal or tax advice. You should consult with the appropriate counsel or other advisors on all matters pertaining to legal, tax or accounting obligations and requirements. For more information on this subject, watch a webinar we did with an attorney on equal pay: bit.ly/2lMKQ5Z

[@seinfan9]

"Pay compression" is a clinical term meant to dilute the fact that employers will take advantage of their employees for as long as they possibly can. That is fair, but you better be aware of the cost of turnover and productivity is going to be. If it isn't "in the budget", you better damn well adjust your expectations on how much productivity you expect out of them.

[@JamesJansson]

This video is even more relevant in 2021 than when it was recorded. if you are running an organization with a lot of important employees below market compensation, your business is in serious trouble. All those employees are at risk of leaving, and not only would you be on the hook for higher wages, but also the cost of training new employees. Employers should be proactive in aligning their wages to market wages.

[@Malevolent_bacon]

Even more true in 2024, at least from my personal experience.

[@GO-nh6br]

My employer was paying new employees 7 dollars an hour more plus time and a half.... and we had to train them. Bsss

[@Sir-Hash-A-Lot]

This is the whole reason nobody is working or wants to work because employers are cheap asf