Q: 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 three years and is a great employee. Should we increase her pay in case she would discover the pay disparity?
A: 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!
Independent Insurance Agents of Virginia