Samar: That new joinee is getting much more than most of us…is it the right way to treat your old assets?

Manager: Our employee are assets for the company but keep in mind, that assets also depreciate with time. As a result, we have to get new ones at a higher cost and reduce the maintenance cost of older ones.

Commentary:

So true in real world. I am not aware of any company which treats its older assets just the way they should be treated. A 3 years experienced person may be getting salary equivalent to a 6 years experienced person who joined say 2 years back. I think they do it purposefully, they know that once any person is in their clutches they would milk him at same salary or with nominal increment for next 3-4 years, so no harm giving them higher package initially.

The biggest idiots are those people who go for the joining bonus. Their current CTC would be say 3 Lac per annum, and then they would goto another company which will offer them CTC of 4 lac, and a joining bonus of 1 lac, making them feel that their CTC is 5 Lac. That employee feels he has got 65% increment while he has got only 30% increment and would not get even 10% increment in next 2 to 3 years if he remains in the same company, so effectively he will end up working on the same CTC of 4.5 to 5 lac for next 3 years.

I marvel the brains of the HR people who fool the innocent once so easily and so frequently.