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salary range when replacing retired employee

  • 17-09-2020 10:34pm
    #1
    Prospectors
    Registered Users, Registered Users 2 Posts: 114 ✭✭


    is it fair to assume that an offered salary range for a new hire takes into consideration their age and potential to increase earnings over a long period of time?

    For instance, a 40 year old being hired to replace a recently retired 65 year old. Assuming an annual pay increase of 2-3%, will the employer try to pitch the offer lower than what the incumbent is/was earning?


Comments

  • #2
    TiGeR KiNgS
    Registered Users, Registered Users 2 Posts: 1,435 ✭✭✭TiGeR KiNgS


    Prospectors wrote: »
    is it fair to assume that an offered salary range for a new hire takes into consideration their age and potential to increase earnings over a long period of time?

    For instance, a 40 year old being hired to replace a recently retired 65 year old. Assuming an annual pay increase of 2-3%, will the employer try to pitch the offer lower than what the incumbent is/was earning?

    No, not 'fair' to assume this.

    The salary should be based on the open market rate, adjusted for the incoming employees experience and possibly the salary the incoming employee left his/her old company.

    The only reason to do your suggestion would be for internal budgeting purposes as placeholder amount.


  • #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,718 Mod ✭✭✭✭Jim2007


    Prospectors wrote: »
    is it fair to assume that an offered salary range for a new hire takes into consideration their age and potential to increase earnings over a long period of time?

    For instance, a 40 year old being hired to replace a recently retired 65 year old. Assuming an annual pay increase of 2-3%, will the employer try to pitch the offer lower than what the incumbent is/was earning?

    No it is unfair in the extreme to expect management to have a 25 year vision on anything let alone your career prospects....

    Salary will be based primarily on what they expect they can get on the market and maybe their budget for the next 12 months or the on rare occasion say 5 years.


  • #4
    OMM 0000
    Registered Users, Registered Users 2 Posts: 3,733 ✭✭✭OMM 0000


    Salary should be based on many factors:

    * How much value the person will add to your company (this is the most important factor)
    * Their skill and experience
    * Market rates (you can't ignore this)
    * Your budget

    Thinking about their salary down the road when they're at retirement age is the wrong way to think about it imo.


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