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Employee Salaries and intraoffice variances
Posted on 6/2/16 at 12:09 pm
Posted on 6/2/16 at 12:09 pm
are you an employer or and employee?
Do you or your boss hire employees at a set base salary or is the starting salary variable based on the applicants experience or resume?
Do you or your boss base salary ranges for employees on their resume and previous training or on the actual job duties and performance?
Ex.
Man A has GED and 1 yr experience from previous job and has now worked for you 2 years with excellent performance at his duties.
Man B has BS in Biology, worked for 2 previous similar companies both for 2 years each, had good references, and is a new hire.
Both men have been hired as lab assistants. Neither will be allowed to make independent decisions without manager over sight. Both men are performing the exact same job for you, are working in the exact same location with the same hours, have the exact same duties, and are even over sighted by the exact same manager.
How do you pay these two men?
Do you hire Man B at a rate above Man A due to his resume?
Do you maintain Man A at a higher salary because he has more seniority with your company and good performance?
Do you or your boss hire employees at a set base salary or is the starting salary variable based on the applicants experience or resume?
Do you or your boss base salary ranges for employees on their resume and previous training or on the actual job duties and performance?
Ex.
Man A has GED and 1 yr experience from previous job and has now worked for you 2 years with excellent performance at his duties.
Man B has BS in Biology, worked for 2 previous similar companies both for 2 years each, had good references, and is a new hire.
Both men have been hired as lab assistants. Neither will be allowed to make independent decisions without manager over sight. Both men are performing the exact same job for you, are working in the exact same location with the same hours, have the exact same duties, and are even over sighted by the exact same manager.
How do you pay these two men?
Do you hire Man B at a rate above Man A due to his resume?
Do you maintain Man A at a higher salary because he has more seniority with your company and good performance?
This post was edited on 6/2/16 at 12:18 pm
Posted on 6/2/16 at 12:54 pm to Bleeding purple
What was B making at last job? Would A's pay rate be an increase for him from last job? If so, I would probably offer him a little less than what A makes, but a little more than what he last made. I'd have a hard time paying him more than A since A is a known commodity. But it depends on the job market as well. If good help is hard to find for that position, it may sway me to offer him more.
Posted on 6/2/16 at 12:56 pm to Bleeding purple
My department hires everyone at the same rate and then generously rewards people with good evaluations.
People know you are rewarded and know if they are doing what it takes to get the reward
People know you are rewarded and know if they are doing what it takes to get the reward
Posted on 6/2/16 at 1:59 pm to Bleeding purple
We have a number of levels in our firm. Each level has a band of pay. Generally, no one is in a level for more than three to four years. If you are not promoted in this time, you probably are not hacking it.
Within the band we look at the experience level, education, and how well you have worked. For new hires, that last part isn't really a factor, because we have no history with you.
In your example, Man A has a GED and three years experience, and Man B has a BS with four years experience. I would think we would bring in Man B at a higher salary than Man A is making. Man B has more experience and more education. In addition, if the field is competitive and if Man B was being paid close to market where he worked before, I would imagine it would take more salary to get him to move jobs.
Within the band we look at the experience level, education, and how well you have worked. For new hires, that last part isn't really a factor, because we have no history with you.
In your example, Man A has a GED and three years experience, and Man B has a BS with four years experience. I would think we would bring in Man B at a higher salary than Man A is making. Man B has more experience and more education. In addition, if the field is competitive and if Man B was being paid close to market where he worked before, I would imagine it would take more salary to get him to move jobs.
Posted on 6/2/16 at 2:14 pm to Bleeding purple
quote:
hired as lab assistants.
For that particular job, or most of the other common medical office jobs we fill, it's pretty much a set rate. I give myself $1 or so to negotiate if it's a candidate I really want, but the additional education on "man B" doesn't give him any significant skills or knowledge that "man A" doesn't have or can't learn.
And honestly, Man B needs to realize that his BS will only really benefit him as a foundation for a masters or Phd if he wants to stay in that field. It does not give him any advantage over the other candidate.
I was "Man B" before realizing I'd be poor forever.
This post was edited on 6/2/16 at 2:16 pm
Posted on 6/2/16 at 3:01 pm to MSMHater
pretty much my feelings on the issue.
We have essentially 7 different positions for employees. We maintain multiple employees in each of the 7 positions.
Managers, billing personnel, phlebotomists, receptionists, scribes, clinical assistants, and phone operators.
Within a given position, individual duties and responsibilities are equal. There is obvious advantages for one employee over another based on work ethic, efficiency of work, punctuality, and demeanor. However within a position, as long as they can complete the tasks assigned, there seems to be little to no realized advantage for over educated or over qualified employees.
For hiring reasons, it is clear that to entice overqualified applicants we may have to raise salaries. This is especially important when appropriately qualified applicants are low.
However, once hired and working I see no reason that a particular employee should be restricted on salary based on their previous resume while an overqualified employee performing the same job with equal proficiency continues to see salary increases.
We have essentially 7 different positions for employees. We maintain multiple employees in each of the 7 positions.
Managers, billing personnel, phlebotomists, receptionists, scribes, clinical assistants, and phone operators.
Within a given position, individual duties and responsibilities are equal. There is obvious advantages for one employee over another based on work ethic, efficiency of work, punctuality, and demeanor. However within a position, as long as they can complete the tasks assigned, there seems to be little to no realized advantage for over educated or over qualified employees.
For hiring reasons, it is clear that to entice overqualified applicants we may have to raise salaries. This is especially important when appropriately qualified applicants are low.
However, once hired and working I see no reason that a particular employee should be restricted on salary based on their previous resume while an overqualified employee performing the same job with equal proficiency continues to see salary increases.
Posted on 6/2/16 at 3:02 pm to The Spleen
quote:
What was B making at last job? Would A's pay rate be an increase for him from last job?
Using last job is the most archaic BS.
Pay someone what they are worth to you. Period.
Posted on 6/2/16 at 3:05 pm to LSUFanHouston
quote:
We have a number of levels in our firm. Each level has a band of pay. Generally, no one is in a level for more than three to four years. If you are not promoted in this time, you probably are not hacking it.
We are very similar to this.
Your level is dependent upon 3 things:
1. Certification-you have to be certified to perform the work, so this is big in determining what band you are in. If you aren't certified you aren't coming in at level 3, because the organiza
2. Education-many people in my field have a masters degree. If you do, that's another point toward a higher level.
3. Experience-relevant experience in combination of the other two criteria will determine where you fall.
A BS plus 4 years of experience would be worth more than a GED and 3 years of experience in my field/organization.
Posted on 6/2/16 at 3:07 pm to Bleeding purple
quote:
scribes
Totally off topic, and sorry for the hijack, but do you find them to be cost effective? Or more a luxury for you (the physician)?
quote:
For hiring reasons, it is clear that to entice overqualified applicants we may have to raise salaries. This is especially important when appropriately qualified applicants are low.
However, once hired and working I see no reason that a particular employee should be restricted on salary based on their previous resume while an overqualified employee performing the same job with equal proficiency continues to see salary increases.
100% agree
Posted on 6/2/16 at 3:27 pm to Bleeding purple
In my opinion, you should pay the job, not the person. Over qualification for a position does not mean a higher salary.
Posted on 6/2/16 at 3:46 pm to slaphappy
quote:
In my opinion, you should pay the job, not the person. Over qualification for a position does not mean a higher salary.
For entry level, or non-professional positions you are probably right.
Posted on 6/2/16 at 3:54 pm to Bleeding purple
I pay according to the value the employee brings to my organization.
Posted on 6/2/16 at 4:55 pm to MSMHater
quote:
Totally off topic, and sorry for the hijack, but do you find them to be cost effective? Or more a luxury for you (the physician)?
As a family medicine physician who practices "full scope womb to tomb medicine" in a rural setting averaging 16 days of work per month and 34 patients per day, I find my scribe invaluable.
With the increase in requirements for extremely specific, redundant and often non clinically relevant EHR driven documentation solely for reimbursement purposes we are truly handcuffed in our care. You can literally have smoking status documented in the body of the note, in the PMHX, and even in the A/P but if you don't click a specific click box then it does not count.
Add in ICD9 to 10 conversion, variance in coding for different payers, for the exact same service, test, or diagnosis and the ever looming risk of litigation and charting becomes a dominant time consumer in the office.
My scribe acts as my shadow and in her limited free time between patients helps with referrals, outside imaging ordering, and other paperwork. I would have to pay a billing person to amend and correct charts or be extremely detailed in my charting efforts if I did not have a scribe.
Doing the notes myself was requiring 2-4 hours per night at home in addition to lowering my patient numbers. Without a scribe I was only able to see 20 patients per day and get my notes done in office with review and correction of notes at night. With a scribe I don't look at my notes at night and I am able to see upwards of 45 a day. Currently my patient census puts me at approx. 34 a day and that 14 pt increase more than pays for the scribes salary.
In a more limited field or specialty with a narrower ranging list of chief complaints and required preventative documentation, it may be more of a luxury.
Posted on 6/2/16 at 10:58 pm to lynxcat
quote:
Pay someone what they are worth to you. Period.
On the flip side, don't freak out if someone at your level makes more.
1. You don't have access to all the factors
2. They negotiated better than you
3. You felt you were getting FMV at the time of hire, or through your employment prior to learning of the difference
Posted on 6/2/16 at 11:43 pm to Bleeding purple
Man A and Man B are at the mercy of my annual budget and what I'm convinced through interviews and references they will achieve versus that budget, with the goal of exceeding KPIs and budgeted goals. I fill vacancies with the best possible candidate in accordance with budgeted salaries. Naturally, the BS and further credentials will garner more interest, and therefore salary in a competitive market, but promoting internal growth for the GED candidate with a documented history of progressive responsibility shouldn't be overlooked - the longevity presented by rewarding strong employees while encouraging both professional and educational growth pays dividends. In terms of engagement, internal promotion (appropriately awarded) posits more "owner" versus "renter" mentality. Internal candidates are always my first consideration. I would expect Man B to have the higher salary of the two vying for the same position, but there's opportunity to offer Man A at a bargain, a diamond in the rough so to speak, and allocate those dollars elsewhere.
Posted on 6/3/16 at 7:45 am to Bleeding purple
I pay people the amount I believe is needed to replace them if a competitor were to poach them. I find this to be the easiest way to consider rates, and seniority doesn't hold much weight when loyalty in my industry is non-existent. A person's value does not necessarily need to be compared to their coworkers, but based solely upon their value to the company.
This post was edited on 6/3/16 at 7:50 am
Posted on 6/3/16 at 8:20 am to StinkBait72
quote:
I pay people the amount I believe is needed to replace them if a competitor were to poach them
Well I completely understand your reasoning that does bring up a secondary question.
How do you adjust the compensation for existing employees when the recruitment of a new employee for the same position requires a substantially higher salary due to low number of qualified applicants and an increasingly competitive job market?
Ex. You have 10 employees all equally qualified and doing the same job for at least the past 5 years. Due to subtle variances in performance, seniority, and initial starting salary those 10 employees range in salary between $10 and $11.25 an hour.
The company has decided to expand and you will need to hire two more employees for the same position. The number of applicants for the position is low. You finally get two applicants who are both qualified however 1 is overqualified for the position. Both have less than five years of experience in similar positions. They request $13.50 and $14 per hour respectively.
What do you hire the 2 new applicants at? What do you do with the salaries of the 10 valuable employees you already have?
Posted on 6/3/16 at 8:39 am to Bleeding purple
quote:
What do you hire the 2 new applicants at? What do you do with the salaries of the 10 valuable employees you already have?
It depends how bad you need the new employees, can you afford their requested salaries, and are you perhaps underpaying your current employees.
Posted on 6/3/16 at 9:23 am to Bleeding purple
quote:
They request $13.50 and $14 per hour respectively.
If it's a lateral move, they are going to request more than they are making, unless they are totally unhappy with their current situation.
IF someone is asking considerably more than I am paying for the same position, including considerations for experience, certifications, etc, I will ask for a documented salary history. It may be that they are currently making the same or close to what I am currently paying, and may be willing to accept a position here for something less than they are asking, but more than they are making.
And if that's really market, and I like my current employees, I will do everything I can to try to raise their salaries up, knowing that if I don't, they may well be poached.
This post was edited on 6/3/16 at 9:25 am
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