Say the word “millennial” to HR and you might hear a sigh of exasperation. It seems to be a common lament of how to deal with this segment of the workforce.
One of the adjustments companies need to recognize is that unlike other generations this group freely shares information. That becomes an issue for companies that routinely pay employees at different rates. Keeping salaries private was an accepted practice. But this demographic sees no issue sharing what they make and uses the internet to look at other companies’ pay scales to determine where they want to work.
Here is a perfect example of how this weakens an organization. The company creates pay scales for their jobs. But if an internal candidate is hired and their current salary is less than this pay scale there are companies that won’t give current employees that large of a pay jump. Instead they might offer a smaller raise and try to, over time, gradually get them closer to the designated pay scale. Yet if they hired externally there would be no issue offering the competitive pay scale to get the best talent.
Companies that endorse this policy usually fall back on the fact money isn’t a primary motivator and they can offer title bumps to offset the money discrepancy. But this policy is about more than money, it’s about respect. It shows your culture and builds your employer brand as someone that doesn’t show loyalty or value employees who have proven themselves.
Other ramifications of this short-sighted policy are the knowledge and talent drain when these employees leave. It leaves your succession planning in ruins when younger and middle managers who are looking to move up and further their career are in constant flux.
Millennials won’t tolerate this double standard. Social media is where they are going to learn what the going-rate is and will be quick to identify the companies they want to work for, and just as quick to share those who treated them poorly.
We would like to hear your experiences as an internal candidate looking to be promoted.
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