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News & Press: Affinity HR Group Resources

Q&A – Pay Disparity in the Labor Market

Thursday, November 15, 2018   (0 Comments)
Posted by: Rachel Moore
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Question

We just hired a new inside sales rep with very little experience. It was a hard, long search, and we had to pay him $12,000 more than our other sales rep who has been with us 3 years and is a great employee. Should we increase her pay in case she would discover the pay disparity?

 

Answer

In a word, absolutely. Employees talk about pay, and she will certainly learn of the disparity. Best to keep it all equitable otherwise you risk losing a valued employee and will end up paying her replacement $12,000 more anyway. Welcome to the true impact of the tight labor market!


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