As a manager, I thought this initially too. But here's the kicker - the employees sit there and take it. Sure they may complain about being underpaid, but few will move to another job.
I remember in my previous job, I had a senior sysadmin who had been with the company for 10 years and earning $70k ... we were hiring new sysadmins off the street for $100k. He complained about it and I tried everything I could to get him a payrise because he was a good performer - but company policy was that pay rises could not be more than 10% without exec approval. So the best I could offer him was $77k - in my justification for more, I compared market rates, how much it would cost the company if we had to replace him ($100k in salary alone let alone recruitment costs) etc - but the reply back from HR was 'we bet he won't leave'. And sure enough he didn't. It really saddened me - the fact is he could get a job elsewhere that paid way more, but he was too 'comfortable' in his position.
In my experience, people tell themselves all sort of stories why they don't leave - I'm still learning lots, I like the people I work with, I need a little more experience etc - all of this may be true to a degree, but going by the number that complain about being overworked/underpaid, a lot of them simply are excuses.
Companies know and understand this - and hence people often may get underpaid.
This is something I'm going to have to deal with soon. I'm not looking forward to it, but I know that I'm getting significantly underpaid compared to new hires. I'm also better than those new hires.
I'll probably leave and find a new job if it comes down to it, but I'd really rather not. That said, if I do leave, there's nothing they can do to bring me back: Saying "oh, you're leaving? here's an extra 50k to make you stay" tells me that they think I was worth the new number in the first place. A place trying to get away with underpaying until their hand is forced is not a place I want to work.
You just described me. I am underpaid by about £5k but I don't move because I like the people I work with. Are the people I work with worth £5,000 a year?
I'm pregnant at the moment though. It don't think it would be wise to willingly enter the job market in my current 'condition'.
There are lots of very good reasons to stay in a job even if you are being underpaid - it very much depends on your individual circumstances - in your case, I would probably stay too.
Just make sure you periodically evaluate your reasons and circumstances to make sure you over time that you aren't falling into a trap of 'comfort' for not leaving.
No not quite - they didn't make any bet or guesses on who will quit - the policy was a blanket policy across the entire organisation - it applied to everyone.
I don't know if it's studied at uni - I assume they maintain this policy based on past experience that the vast majority of employees will accept whatever crumbs are tossed their way and stay put.
I remember in my previous job, I had a senior sysadmin who had been with the company for 10 years and earning $70k ... we were hiring new sysadmins off the street for $100k. He complained about it and I tried everything I could to get him a payrise because he was a good performer - but company policy was that pay rises could not be more than 10% without exec approval. So the best I could offer him was $77k - in my justification for more, I compared market rates, how much it would cost the company if we had to replace him ($100k in salary alone let alone recruitment costs) etc - but the reply back from HR was 'we bet he won't leave'. And sure enough he didn't. It really saddened me - the fact is he could get a job elsewhere that paid way more, but he was too 'comfortable' in his position.
In my experience, people tell themselves all sort of stories why they don't leave - I'm still learning lots, I like the people I work with, I need a little more experience etc - all of this may be true to a degree, but going by the number that complain about being overworked/underpaid, a lot of them simply are excuses.
Companies know and understand this - and hence people often may get underpaid.