Should You Pay More to Starter Employees?

first time employees

Billions of people on the planet attempt to work hard, and the vast majority are grossly underpaid in comparison to those cushy CEO jobs that don’t require much heavy lifting. This is often called inequality, and so many people expect to be paid more in order to close that gap. But if you’re a business owner, should you pay your employees more money to start out?

Sure, it might seem great to start out at $10 or more/hour, but when employers pay that up front, the next levels up are only going to be $11 and $12. Whereas starting lower, the company has more money, and when you do get a raise, you truly get a rise – up to $16 or higher.

Another reason is that it cuts out the idea of summer jobs or starter jobs. If you own a small ice cream shop and decide to pay everyone a minimum of $10/hour, who are you going to hire? Are you going to hire a kid out of high-school who wants a summer job, or are you going to look for more experience and someone who can add more to the company?

While people do deserve to be paid more money, It seems to me that starting people out on higher wages for beginner-level jobs will end up hurting people through intended consequences.

 

1 thought on “Should You Pay More to Starter Employees?

  1. valven108

    It is really right to say that starting a job you need to know the value of money. Starting out on a high does not serve the purpose. Of course the pay should be raised but much for people who have proved themselves

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