VP advocates for underpaid employee's 18% raise, CEO refuses and spends 3x as much money to replace him

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  • A CEO stands in front of two employees, both of whom look frustrated, in an office.
  • The CEO refused to give an important employee a raise, so the employee quit. Now he wants to spend 3x to replace him.

    As a VP, there are days I feel I carry a huge amount of responsibility but have no real authority. Today is one of those days.
  • For five years, our CEO has been very stingy with raises. Every year I would fight for my team, and could barely manage to get them a 1% to 3% increase, which is of course much less than they deserve.
  • I had an employee, hired four years ago at a mid-level salary, who was frankly a rockstar. He single-handedly handled the responsibilities of two different departments, built new automated workflows from scratch, and saved the company
  • about $300,000 a year by bringing a lot of outsourced work in-house. After all that, he was still getting trivial raises of 1% to 2%.
  • The VP stands with his arms folded, contemplating how to defend his employee.
  • He came to me and asked for an 18% raise, which would *still* have made him the lowest-paid person on my team. I was 100% with him and took his request to the CEO. He stalled for weeks and finally refused. The employee
  • submitted his resignation on the spot, as he had already found another job with a 25% higher salary. And honestly, I don't blame him at all.
  • I'm just so furious. And I wanted to let you know that there are people in management who also see these things that happen as completely illogical. The situation is really frustrating.
  • And what's more infuriating? The CEO now wants me to hire two contractors for $18,000 a month to cover the work. The math itself is insane. You can't build a strong team this way.
  • The CEO stands against an office cubicle in profile.
  • El_Cartografo. Did you ask the Chief Empty-headed Officer what his logic was?
  • xPumpkin25x My former boss was the same way - he would give miniscule raises but then when the person quit they would hire someone for more pay - 100% of the time those new ppl never worked out.
  • gormholler I feel your pain. As one who was forced to choose my self-respect or my job, knowing the repercussions for my co-workers and the business overall. Still hurts after 4 years.
  • OverTheDump · It's sad that being a CEO does not require any formal training and experience. They could be in charge of hundreads of different professions with various credential requirements...but a CEO needs...nothing.

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