
Think Strategically About Your Career Development - thix0tr0pic
https://hbr.org/2016/12/think-strategically-about-your-career-development
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malloci
"A study by Wharton professor Matthew Bidwell showed that external hires into
a company get paid 18-20% more than internal workers who are promoted into
similar jobs. (Gratingly, they also perform worse for the first two years.)
That’s patently unjust, but it points to an important truth: professionals are
often taken for granted inside their own organizations."

It always amazes me that this has never been rectified within the corporate
culture. Maybe the percentage of employees that look is so low that the risk
of losing them isn't worth the cost of proactively keeping them happy with
their salary?

~~~
dvtv75
Anecdotally in support of your quote:

Where I presently work, about half of the staff have migrated from a
technical/support (but not IT) side of the business to the "productive side of
the business.

They all get the national minimum wage plus a few coins, to make them happy.
Where they came from, where I am, is minimum wage part-time/casual (legally
part-time/permanent, contractually casual). If anything goes wrong - and with
our failing electronic equipment it happens all the time - then there are
warnings, there is much screaming and swearing at, and so forth.

Since we recently merged with another business, the new hires - who are fresh
out of training with no experience and rather poor skills in our particular
area - get about 35% more pay, better conditions, and the managers are far
more tolerant of their mistakes. (You produced under 40% of your weekly
minimum requirement? That's OK! You've opened us up to serious lawsuits
because of your poor work? No problem! You smashed the state-of-the-art
equipment we bought you, and then snatched your supervisor's unit to replace
yours, and she couldn't do her job? That's fine!)

The lowest paid of these staff, the internal promotions, are responsible for
all our production and training at a fraction of the pay. The new hires are
classed as full-time/permanent, the internal promotions are part-time/casual
and so can be dismissed at any time with minimal notice. Needless to say,
they're leaving as soon as they can find a job anywhere else.

~~~
mdrzn
Just playing devil advocate here but:

If there's at least 2 business doing this, why don't you just go to the other
side and vice versa? There should be new openings everywhere everytime, and
you could demonstrate that you're worth the 35% pay increase.

