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Seven in 10 junior staff struggle to train new starters on similar pay – IRIS Software Group

Among junior staff who had discovered what a new starter earned, 24% said the salary was the same as theirs and 38% said it was up to £1,000 lower.

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Seven in 10 junior staff struggle to train new starters on similar pay – IRIS Software Group
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Seven in 10 junior staff find it difficult to feel motivated to train new starters earning almost as much as them, research from IRIS Software Group found.

A third (32%) of HR leaders said this gap had narrowed over the previous two years. 

46% expect salary bands to narrow further during the next two years.

Among junior staff who had discovered what a new starter earned, 24% said the salary was the same as theirs and 38% said it was up to £1,000 lower. 

A further 16% found new starters were paid more.

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More than two-thirds (69%) said the figures left them feeling undervalued, frustrated or disappointed. 

A third (33%) asked for a pay rise and 16% accepted another job offer.

Most HR leaders (84%) were concerned about losing junior staff who felt their pay did not reflect their experience and added responsibilities. 

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However, just one in five (20%) planned targeted salary adjustments.

Almost a quarter (23%) said their HR systems could not compare pay with changes in employees’ skills and responsibilities.

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Stephanie Coward, managing director for HCM at IRIS Software Group, said: “It’s not surprising to see frustration building when young professionals are taking on harder work, more responsibility and helping train the next intake, but see almost no difference in their pay.

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“Businesses have faced genuine pressure to raise starting salaries, including increases to the National Minimum Wage and National Living Wage. 

“But this isn’t only being driven by forces outside employers’ control. HR professionals also pointed to internal issues such as salary bands not being reviewed regularly enough.”

Coward added: “Most businesses won’t be able to solve this with blanket pay rises. But they do need to understand where compression is happening and where it risks costing them good people.

“A targeted salary increase may look expensive, but so is losing an experienced employee, recruiting their replacement and rebuilding the knowledge that walks out of the door with them.

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“Better visibility gives businesses the chance to intervene earlier – whether that means targeted pay adjustments, clearer progression or simply having a more informed conversation with employees about what their experience is worth.”

She said: “The businesses that get ahead of this aren’t the ones reacting to resignations – they’re the ones treating pay data as a strategic tool, not just a payroll function, so they can see where the ladder is breaking down before their best people do.”

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