QUESTION: The more experience you have, the higher the salary.
FACT: Increased responsibility and better results will
command a higher salary.
People consider their years of experience as a yardstick for getting a higher salary. Initially, the performance difference between two employees with the same number of years experience is not evident, and so the difference in payout based on performance is not significant. Over a period, however contribution will start to drive the salary, and the years of experience becomes just one of the many ‘parameters.
Often the number of years of experience will act as a hindrance in getting a new job or a promotion if the person has not maintained pace in acquiring new skills vis-a-vis his contemporaries. If a person has developed his skills adequately to manage his current job, but not sufficiently for the new one, he might complain that the company is being unfair in not providing him with opportunities. But the reality is that he is not ready. Some do not move up as the soft skills required for a new position are found lacking. This is the most difficult part to explain and even more difficult for the employee to digest that he has to possess non-technical skills as well as technical skills for the next step up. Therefore, just clocking in the years is no guarantee for a higher: salary. This can, of course, cause pain as people see their juniors overtaking them at various stages of their career.
In some cases, a company prefers to hire less experienced people as it can mould them the way it wants, in order to get the desired result; but there are also many roles in a company that can only be filled by experienced people. These positions require that the person should have proven his skills over the years.
Generally, however, it is not the years of experience that largely drives the salary, but matters like contribution and responsibility. But, companies must also be sensitive to the culture in some countries where years of experience does play a major role. In these cases, they ,need to ensure that their compensation philosophy is well articulated so that people can understand it.
WHAT CAN YOU DO AS THE EMPLOYEE? You have to understand very early in your career that it is your role and responsibility which will drive the salary and not just the years of experience. Comparing your salary with that of your colleagues and friends against the year of graduation, and determining career success in this fashion, is self-defeating, You should, instead, focus on getting the desired role which you have determined in your career plan. The role does not necessarily mean a job title, but a position where you have more accountability and responsibility. Two people at the same job level can have different roles, depending upon their skills and appetite to accept challenges. This determines the differentiated salary among employees.
WHAT CAN YOU DO AS THE MANAGER? You should promote a performance-based culture rather than a seniority-based culture. Once this culture is well understood and policies are in place, you will see that some people are overtaking others based on performance; then, half your battle is won. The other half of the battle is to work with each team member in improving his performance. You should strive towards building a high-performing team.
