What is the rationale of not offering an existing employee a salary as large as the one offered to a new one?

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The following happened several years ago when working in another company, but same policy is also used where I work.



One of the managers had to fill up one position for some kind of technical support position. He had two options:



  • try to transfer one of our colleagues that worked within another department
    OR

  • hire a new person

After several interviews, he realized that had to choose between two very similar candidates:



  • the internal one, who also wanted to be transferred.

  • a good candidate

However, the internal policy specified that an existing employee could not transferred and have a salary raise more than x%.



I am wondering why having such a policy that puts a barrier for getting a good candidate for a job. An existing employee can be preferable as he/she is familiar with the company culture and also might be motivated by a change.



I asked a few persons about this policy, but nobody seems to have an explanation about why it is there.



Question: What is the rationale of not offering an existing employee a salary as large as the one offered to a new one?










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  • Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
    – rath
    48 secs ago
















up vote
1
down vote

favorite












The following happened several years ago when working in another company, but same policy is also used where I work.



One of the managers had to fill up one position for some kind of technical support position. He had two options:



  • try to transfer one of our colleagues that worked within another department
    OR

  • hire a new person

After several interviews, he realized that had to choose between two very similar candidates:



  • the internal one, who also wanted to be transferred.

  • a good candidate

However, the internal policy specified that an existing employee could not transferred and have a salary raise more than x%.



I am wondering why having such a policy that puts a barrier for getting a good candidate for a job. An existing employee can be preferable as he/she is familiar with the company culture and also might be motivated by a change.



I asked a few persons about this policy, but nobody seems to have an explanation about why it is there.



Question: What is the rationale of not offering an existing employee a salary as large as the one offered to a new one?










share|improve this question





















  • Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
    – rath
    48 secs ago












up vote
1
down vote

favorite









up vote
1
down vote

favorite











The following happened several years ago when working in another company, but same policy is also used where I work.



One of the managers had to fill up one position for some kind of technical support position. He had two options:



  • try to transfer one of our colleagues that worked within another department
    OR

  • hire a new person

After several interviews, he realized that had to choose between two very similar candidates:



  • the internal one, who also wanted to be transferred.

  • a good candidate

However, the internal policy specified that an existing employee could not transferred and have a salary raise more than x%.



I am wondering why having such a policy that puts a barrier for getting a good candidate for a job. An existing employee can be preferable as he/she is familiar with the company culture and also might be motivated by a change.



I asked a few persons about this policy, but nobody seems to have an explanation about why it is there.



Question: What is the rationale of not offering an existing employee a salary as large as the one offered to a new one?










share|improve this question













The following happened several years ago when working in another company, but same policy is also used where I work.



One of the managers had to fill up one position for some kind of technical support position. He had two options:



  • try to transfer one of our colleagues that worked within another department
    OR

  • hire a new person

After several interviews, he realized that had to choose between two very similar candidates:



  • the internal one, who also wanted to be transferred.

  • a good candidate

However, the internal policy specified that an existing employee could not transferred and have a salary raise more than x%.



I am wondering why having such a policy that puts a barrier for getting a good candidate for a job. An existing employee can be preferable as he/she is familiar with the company culture and also might be motivated by a change.



I asked a few persons about this policy, but nobody seems to have an explanation about why it is there.



Question: What is the rationale of not offering an existing employee a salary as large as the one offered to a new one?







salary hiring internal-transfer






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asked 14 mins ago









Alexei

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  • Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
    – rath
    48 secs ago
















  • Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
    – rath
    48 secs ago















Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
– rath
48 secs ago




Before you VTC as Company-specific regulation, note that 1. OP asked around and received no response, 2. policy in question is quite common, therefore not company-specific, 3. question is about the rationale of such policies
– rath
48 secs ago















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