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person is making more


How come the new person comes in at higher pay?

Feb 8, 2008
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Dear Rachel,
I'm at an agency where I know for a fact that a brand-new, just-out-of-college employee in our D.C. office makes more than me. I'm in Colorado and have been with the company almost two years. Should I be concerned? I have more experience and a college degree as well, so it’s not like I am less qualified.-- Going Nowhere in Colorado

Dear Going Nowhere,
Unfortunately, this happens quite a bit. New hires often come in at higher salaries than people who've moved up internally. It's the law of supply and demand.

Here’s the deal. During good times, as these have been in media these past several years, more jobs open up, demand for good people rises, and salaries are pushed up as agencies bid for the talent that's available.

During tough times, when agencies are cutting staff, they can afford to be a lot less generous, and they'll bring new people in at about or below what they are paying people already on the payroll.

"If there is an abundance of good people, the salaries will go down," notes one New York media veteran.

As a rule, people who move around, particularly in the early years of their careers, tend to end up making more money than those who stay in one place.

That's typical. But that's only if they are making smart moves. There's always the risk of moving to a shop that's really an awful place and seeing one's career abruptly derailed. And there are lots of those places, trust me.

Longer-term, though, the system rewards people who stick it out at one media shop, perhaps after moving about some in their early years. They may see fewer raises in their first years at that agency, but as they rise they'll come out ahead of those who've moved around a lot.

Typically top management at the most respected agencies are long-termers.

The big issue is not what you are making versus what a new hire is making but whether you're at an agency worth spending your career at, or at least a few years.

Are they good people? Do they recognize and reward talent and integrity? Are you learning each day and each week, or are you stagnating?

If it's a good outfit, believe that you will be rewarded for staying and doing your best. If it's a schlock shop, plan on moving on no matter what they are paying you. You need to find a place where you feel you can spend a few years or more.

Those places are not easy to find, but it's worth the effort to look hard and long.

As for the new person in the Washington office, you need to take into consideration the higher cost of living there. You may in fact end up with more disposable income than your D.C. counterpart.

Also, keep in mind that you only have an idea that person is making more, based on what you have heard. You don't really know and can't know unless you've seen the paperwork.

If in fact that person is making more, you need to set a strategy for getting a raise when your next review comes around.

"If people in your shop with less experience than you are making more, it is time to formulate a list of accomplishments and talk to the boss," advises a senior Atlanta media executive.

"Don’t be afraid to be fairly frank. Say that you have heard that new hires are making more than you. Present a very brief overview of your accomplishments, and ask what you would need to do to get a raise that would put you on a level with the new hires.

“If you get a lackluster response, consider sharpening your pencil and reformulating your resume."

Ultimately what matters, and what you get out of such conversations, is a sense of the worth your superiors place on your work. You may not always be pleased with what you learn, but that information will serve as an invaluable guide for your career. Better to know than not to know.

***
 
 
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Rachel is Media Life's career advice columnist for media planners and buyers. She welcomes questions from readers about how to get a job in media, how to keep it, how to get ahead, and how to do it all without going nuts.

Got a question for Rachel? You can email her at askrachel2004@yahoo.com.




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