“Only For New Hires? Fine”: Manager Decides To Hire People At A Higher Rate Than Long-Standing Employees Earn, Gets A Dose Of Malicious Compliance

If you’re stingy and you know it, clap your hands! *clap clap* 

Don’t you just love working for a company for multiple years, dedicating a good chunk of your day (or life), putting in the effort to be the best you can be, only to find out that new hires will be earning more than you? Yeah, it apparently happens a lot more than my brain can comprehend. 

Thankfully, we are blessed with stories of people finding creative, ingenious, and simultaneously hilarious ways to break the unjust system and stick it to the man (or woman, whichever). One such story comes from a person, nicknamed tpb772000, who shared their story on the Reddit group r/MaliciousCompliance. They were also very kind to answer some of our questions! 

Here at Bored Panda, we love a happy ending! So, after you’re done with this little story, here is another one that might tickle your fancy—oh, and another one here! Enjoy and leave your thoughts and opinions on everything in the comments below! Now let’s get into it! 

More info: Reddit

No long-standing employee wants to find themselves in the middle of a pay compression, where less skilled or experienced employees earn the same or more

Image credits: Aleksandar Pasaric (not the actual photo)

Having a job is one of those norms of life that very few get to run away from. You want to be able to afford heating? You work. You want to be able to afford a freshly made jam-filled donut? You work. You want to conquer the world with an army of cats? You work.

However, one wants to feel as though they’re appreciated for the work they do on a daily basis. And what’s the best way to do so? Get a bonus, get a raise, get some form of monetary reward—you get the gist. Yet, some managers decide that the best way to say ‘thank you’ is to give you more work in the form of training up newbies, whilst denying you a raise.

This is the situation one Redditor, with the nickname tpb772000, was faced with. Spoiler alert: the story has a happy ending. But the way he got there is definitely one for the employment workbooks.

Whelp, this Redditor, with the username tpb772000, was put in that exact position. A satisfying case of malicious compliance followed. Here is the story:

Inage credits: tpb772000

Pay compression is often triggered by inflation and labor shortages, yet it may diminish workplace morale and lead to high rates of turnover

Image credits: Clay Banks (not the actual photo)

Ingenious, yet most effective. If new hires are getting that sweet pay, why not become a new hire yourself, even though you’re still technically an old hire… Look, I don’t know what that’s called or classed as; the fact is, it’s a clear and natural progression of unmotivated and underappreciated workers, regardless of your position or career path.

tpb772000 told Bored Panda that his parents’ support is what pushed him towards such a daring act of rebellion. “They had my back and said, ‘you determine how you let other people treat you,'” he said.

The situation this Redditor was put into is called a pay compression, which occurs when there’s little difference in pay between employees, regardless of differences in their knowledge, skills, experience, or abilities. He believes that it’s a tactic employers use to control and take advantage of their workers.

“If you can keep the older employees for less money, you know you can push them around and no longer need to worry about them,” he explained. “Very few people can afford to do what I did and [employers] know that. They save a lot of money but also know who is desperate. For a job such as a cashier, the cheaper you can pay the better for the ‘company.’ However, this leads to high turnover (which it did) and less productivity.”

Surprisingly, it happens way more often than you’d think. Capterra’s 2022 New Hire Premium Survey discussed this with 654 hiring managers and 635 staff-level workers in the U.S. Nearly two out of three hiring managers (65%) said that their organization was offering new employees higher starting salaries than usual. Furthermore, said salaries were raised by 9 percent on average, but close to one in six (16%) had raised wages by as much as 15 percent or more.

The most commonly noted reason for this? To combat inflation and labor shortages. According to Indeed, wage compression can occur when a company has a history of infrequent raises. Also, if there are changes in leadership, structure, or market, it may influence the company to attempt to draw in new talent with higher wages or higher total compensation packages.

Stacey Carroll, managing director of compensation and benefits for Hawaiian Airlines in Honolulu, believes that a new employee making more than their manager isn’t necessarily a problem. “The boss may earn less because the market value for a manager could be lower than it is for someone with a highly specialized skill set,” she said.

As argued by SHRM, single instances of pay compression may not justify extensive salary adjustments. For new hires with much-needed skills but less work experience, it may be appropriate to start them higher in the position’s pay range. That also goes for unique circumstances, when a worker doesn’t fit into existing job categories or if they’re coming in to help short-term.

Still, it seems like a self-fulfilling prophecy, if you ask me. It’s not as if employees are unable to check the job adverts that their company has, allowing them to immediately notice the stark differences in remuneration. This can quickly garner resentment among the long-term but lower-paid employees, leading to weaker morale and increased turnover.

You know what happens then? The company needs to look for even more new people, especially those with significant skills, to potentially take over from the experienced workers who decided to leave. You know what that’ll cost? Far more time and money than it would have been if they’d just increased the salaries.

If the company is consistently paying new talent more than existing employees, it may be a good idea to stop and reevaluate some things, such as the market data and the organization’s talent requirements. If it’s not possible to increase the pay for all employees, then mayhaps providing an array of different benefits is in order, such as bonuses, offering employer stock, or added paid vacation days.

Should you go ahead and do what tpb772000 did? It may not be possible, considering your situation in life. But you may as well try to get that pay rise by tracking your responsibilities and impact on the company and presenting them to your boss. Know what you want—it’s very important. And if that fails, be open to new opportunities elsewhere.

“If you are financially can do this, 100% do it,” the Redditor said. “In the long run it will help you a lot more than just more pay. It will show the employer that you will not be taken advantage of and that they need you just as much as you need them. For those able, take advantage of opportunities like this. This one experience changed how I let all employers treat me and how I view myself.”

We’re glad to see that things worked out well for tpb772000 and can only hope that they will never be put into a similar situation again.

Let us know your thoughts in the comments below and share your own tales of pay compression, as these folks on Reddit have. Enjoy your day and I’ll see you in the next one!

Thankfully, all ended very well for the Redditor. Many people supported him and shared their stories as well. Make sure to share your thoughts in the comments!

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