How Does a Junior Title + Low Pay = a Senior Level Job?

MBanes August 21, 2008

I recently read an article on wsj.com entitled, Help Wanted: Senior-Level Job, Junior Title, Pay, which talked about combining two or more jobs as a means of cutting cost during this economic downturn. According to this article, “Some job hunters have been encountering a new kind of downsizing: companies that aren’t eliminating positions entirely, but are combining a mid-level position with a more junior one – then advertising it as a junior slot and offering a lower salary.” Apparently, this is a brand new trend for companies as they find ways to cut cost. A close associate revealed to me that the responsibilities at her most recent position as a Director of Human Resources included mundane tasks that are usually performed by Human Resource Assistants. This article also cited that the trend has affected multiple financial-services firms who are now searching for IT developers skilled in fixed income, derivatives and equity-trading platforms. Well, I wish them much success because all the Developers I know have no interest in Finance roles.

Examples of job combining:

• CODA Resources, based in
  Brooklyn, recently replaced an office manager and warehouse manager with one person. The move has saved them $50,000. CODA Resources states that the new arrangement is working out nicely, but admits they check in often with the new employee to make sure the employee does not get overworked

• Walter Beaver, a 41-year-old computer services technician from
  Northglenn, Colorado, current employer has filed for bankruptcy; therefore he has been in search for a job since April. He applied for a position labeled “system administrator I,” which was a title equivalent to his current position. However, the tasks of the job required someone with the skills of a mid- to senior-level administrator. The pay was listed for $28,000-$32,000 and according to Mr. Beaver, the job should have commanded a salary of $10,000 higher

Employers are taking advantage of their workforce, which is a company’s greatest asset, by giving them such an intense workload. I agree with the article regarding, “these measures may help companies cut cost today, but they tend to backfire in the long run.” When you have one person taking on the role of two or more people, they will either get burnt out or quit. The only targeted group of employees, who could possibly benefit from more high level responsibilities than is typically given to person in that particular role, is entry-level candidates because they might not notice that they are being taken advantage of and more responsibilities could beef up their resumes.

I personally believe that Recruiters who send inaccurate messaging regarding positions and set inappropriate expectations related to the job will hire new hires that will be dissatisfied around the workload and compensation. This unrealistic expectation can have a significant impact on the Employer Brand and how employees feel about the way they are treated. Employers need to keep in mind that it will cost them more money to run ads, hire 3^rd party recruiters, and training to replace the overworked employee who will eventually leave.

Posted in Human Resources Analytics