Hiring new workers and pay scale of current workers, what options are there?

[IninefingersI]

In my experience, raising your starting wage doesn't get you better applicants, it just gets you the same applicants for more money. Paying too much for someone can definitely cause a chain reaction. It is unavoidable that after 3 or 4 smoke breaks, everyone knows what the new guy is making.

 

[DanASM]

I suspect the OP's shop is one of those with a permanent sign out front "We are hiring".....
Local well known low wage shop put a sign out front lately (when all the fast food places
are advertising $15) "Hiring at $11"....uhm yeah.
FWIW we got a Amazon warehouse in 2019 and they advertised $15 starting.

We are at 14.25/hr min wage until Jan 1 then its 15/hr.

Mcd's is advertising 16/hr starting wage.

Grocery Stores are getting 17+ and they get to work in an air conditioned building and not get dirty for a living.

 

[camscan]

Where I'm currently at we have set rates, no matter the position or experience. If the job title pays 21.50/hour that's what you get. I guess in a way it keeps an equilibrium between workers.

I would not work in a shop that pays one rate, what about experience? Some people that I have worked with think a ring spanner is to tighten up their arse. Same pay rate as me? I dont think so.

 

[pgmrmike]

I've had trouble with just exactly this issue: insane starting pay requirements for new hires.
So I've started bumping up my long timers at the same time, to make sure they stay above what the new kids are getting. Costs more (now) but it keeps my long timers (and their knowledge) around.
So everybody but me has gotten at least one raise, or possibly 2 in the past 12 months.
Loyalty is a two way street.

Regards,
Brian

I am small and havent been around long enough to have long timers, but this is what Im doing. Well, with the exception of one guy. Been on the fence about firing him so he can quit if he doesnt like it......

 

[pgmrmike]

I have looked it up. MN is at will too, and it's absolutely illegal to fire someone for discussing wages here:

Wage-disclosure protection FAQs | Minnesota Department of Labor and Industry

And nation wide:

Can Employees Discuss Pay and Salaries? - GovDocs

If you've done this since 2014 and not gotten in trouble you got lucky. How do you prove to the court why you fired them, especially if your policies are illegal?

Illegal here too. The state says you can ask them to not tell, but cant tell them, or punish them for telling. To me its really no big deal. I can justify everyones wages here ( only 4 guys ) and explain why they make what they make. ( I do prefer if they dont talk about it just to keep any drama down-real or perceived)

 

[jaguar36]

Paying new people more than existing employees means you aren't paying your existing employees their market value. Eventually they will find out they are being under paid and either quit or just become bitter and disgruntled. You may be able to get away with it for a little while, but its going to bite you in the ass in a few years.

 

[Milland]

FWIW we got a Amazon warehouse in 2019 and they advertised $15 starting.

Everything I've read about AMZ warehouse work makes it seem like hell...

 

[Larry Dickman]

Hey, let's hire new people for way more than they're worth, and then bump the pay of our existing workers way up so they'll feel all warm and fuzzy.
That sound all Righteous and noble, but where does this money come from? We're already paying almost double for material than we were 6 mo ago. Pass it along to the customer? Lets all join hands and wave, "Goodbye customers"

 

[SteelrFn]

Why would the starting pay be higher than current employees? That makes no sense. Doesn't your company give at least cost of living pay increases each year, and if not, why would anyone work for a company that doesn't give raises? I feel raises should be 3%/year minimum no matter what and more if merit is earned for whatever reason. If someone doesn't deserve 3% for sticking it out for a year and the company feels he/she shouldn't get it because... whatever, then why is that employee even still there?

 

[DDoug]

This sounds allot like the way City of Erie runs manufacturing away....Keep taxing the old companies, higher & higher.
Take over Brownfield sites (I wonder why they left Erie....) and offer free land (taxpayers funded the cleanups, and absolve new owners from any liabilities), no taxes, cash incentives to new start ups.

Now the city can't get by with less tax revenue, so increase taxes on the existing, to pay for all these "incentives".

They have gotten scammed several times, a juice company that never broke ground (but took the money) is just one example.

 

[jaguar36]

Everything I've read about AMZ warehouse work makes it seem like hell...

Standing around in an air conditioned warehouse putting stuff in boxes? Sounds like a vacation compared to alot of jobs my father's and grandfather's had.

 

[CITIZEN F16]

Not directed at anyone but it's the fucking you get for the fucking you gave. Decades of stagnant and poor wages yet can't figure out why you can't get anyone hired. I am lucky enough to work for a shop that read between the lines when a key guy left and have gotten great raises in the last 6 years. Change of ownership definitely helped that situation but FFS 8 years ago I considered working at the McDonald's for $16/hr managing a bunch of high school drop outs. What's the tolerance on a double cheeseburger? Plus or minus one patty?

I think a lot of shops held on to work that wasn't very profitable, the money really isn't there to pay people top dollar. It wasn't in machining but a rubber press molding business, the owner flat out said where the wage limit was
and an employee had no future there.

 

[CITIZEN F16]

Everything I've read about AMZ warehouse work makes it seem like hell...

Standing around in an air conditioned warehouse putting stuff in boxes? Sounds like a vacation compared to alot of jobs my father's and grandfather's had.

Standing, more like running. My girlfriend's son is a supervisor there. The higher ups set unattainable quotas that no one ever meets and wants the employees asses constantly rode. They have a very high turnover and don't care, miserable place to work.

 

[pgmrmike]

Hey, let's hire new people for way more than they're worth, and then bump the pay of our existing workers way up so they'll feel all warm and fuzzy.
That sound all Righteous and noble, but where does this money come from? We're already paying almost double for material than we were 6 mo ago. Pass it along to the customer? Lets all join hands and wave, "Goodbye customers"

I am doing it to retain good, productive employees. As far as material costs, yes, I pass it on to customers. Everyone else is paying more for matl too. If I had long term contracts, then yeah, I would be screwed. Guess thats a benefit to being a job shop

 

[jaguar36]

Standing, more like running. My girlfriend's son is a supervisor there. The higher ups set unattainable quotas that no one ever meets and wants the employees asses constantly rode. They have a very high turnover and don't care, miserable place to work.

I suggest you go visit a coal mine one of these days.

 

[plastikdreams]

I would not work in a shop that pays one rate, what about experience? Some people that I have worked with think a ring spanner is to tighten up their arse. Same pay rate as me? I dont think so.

Every once in a while they post all the pay for all the hourly titles, I guess for transparency.

 

[jccaclimber]

I am doing it to retain good, productive employees. As far as material costs, yes, I pass it on to customers. Everyone else is paying more for matl too. If I had long term contracts, then yeah, I would be screwed. Guess thats a benefit to being a job shop

Good long term contracts have an entry about material price increases greater than x%.

 

[Milland]

Standing, more like running. My girlfriend's son is a supervisor there. The higher ups set unattainable quotas that no one ever meets and wants the employees asses constantly rode. They have a very high turnover and don't care, miserable place to work.

An article if anyone wants confirmation: What Is It Like to Work at Amazon? Hiring, Firing, Performance Reviews

 

[tdmidget]

It's been a while since I've had a "Job", but the last few places I worked had a policy. If you discuss your pay with anyone, you're fired.

So if Bill comes up bitching about why Joe makes more than him, both Joe and Bill are gone.

That'll work real good.
[h=3]Your Right to Discuss Wages | National Labor Relations Board[/h]

 

[CITIZEN F16]

Standing, more like running. My girlfriend's son is a supervisor there. The higher ups set unattainable quotas that no one ever meets and wants the employees asses constantly rode. They have a very high turnover and don't care, miserable place to work.

I suggest you go visit a coal mine one of these days.

Of course it is hard dirty work, but are the employees treated well? My claim of a miserable place to work was directed at how the employees are treated, nothing more.