How Should We Set Probationary Pay for Experienced Hires Compared to Freshers?

Our services company, located in Northeast India, mostly hires freshers. Now, we are starting to receive applications from experienced candidates.

Probationary Pay for Experienced Candidates

If a candidate has 2 years of experience and was earning 30,000 in their last job but is now applying for a different role in our company, what is the probationary pay you would suggest? Should it be similar to their previous salary or should we use our probationary slab of 8,000 to 15,000 that we have for freshers for a 1-month trial?

Dear Member,

Probation is a type of appointment. The fixation of salary depends upon the candidate's qualifications, previous experience, skills, performance in the interview, and suitability factor.

Dear Naziren,

In my opinion, offering an experienced candidate who is currently earning ₹30,000 a probationary pay of ₹8,000 to ₹15,000, even for a different role, may not be the best approach. This significant pay reduction could lead to dissatisfaction and a lack of motivation, making it harder to retain the candidate. I would suggest maintaining a reasonable salary closer to their current compensation during the probation period, which could be set at 6 months. After confirmation, you can stick to your company's existing Performance Management System (PMS) and policies, without offering a hike immediately after the probation. This would ensure the candidate feels valued while aligning with your company's policy.

It would be fair and appropriate to fix the emoluments during probation close to the last drawn, if not over and above that. There may be more than one reason for such candidates seeking jobs in competition with freshers. That doesn't mean we should undermine their experience and skill. It's hard to believe a fresher could match an experienced and skillful employee, however advanced their curriculum is. Please be reasonable so that they are not pinched. If their last pay drawn is protected to a minimum, it would be reasonable to boost their morale and develop a sense of liking in them.

Paying less than previous job: A risky strategy

It is always a bad idea to pay someone less than what they earned in their previous job. They will rarely bother to stay, and you become a stop-gap until they find the next job.

In some cases where they want experience in a new function, they may agree to work for you. But as soon as they have adequate experience, they will switch. If that matches your requirement (short-term, not long-term), then go ahead.