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Chief
I'm curious what the average salary is for an Associate Agent. I'm licensed & do everything after the sale is made as well as refer new business. I have 14 years in the industry but have been at the current company less than a year, so I know that plays a part as well. Anyone in a like-position by chance?State Farm Allstate Travelers
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Wow
Not surprised one bit
This is not real. This sort of thing would be ripe for litigation and no actual company would pursue this as a strategy.
Seems like they were grossly overpaying that position if someone was willing and able to do it for over 50% less
I don’t know if that’s real and widespread or not, but I do think most companies seem “stuck” in ridiculous rates as if inflation never happened. Good luck with finding your unicorns.
This isn't real
Rising Star
This is gonna be an unpopular opinion. But honestly, it’s a smart business tactic. Wouldn’t you do the same if it was your money that YOU were paying someone?
This is a strategy to gather market data. There is no real reliable source that gives us accurate data on salaries (not for employees or candidates). So, they are trying to figure out what the “right price is.” They are basically using the bidding strategy that is used during auctions, except in this case, the numbers are going down instead of up. But it’s the same bidding concept in the end. Essentially, this is their way of “appraising” their job requisition to see what it’s truly worth. They don’t want to overpay, just like YOU as a consumer wouldn’t want to overpay for a product.
Salaries are determined based off of the same economic principles of supply and demand. So, they are trying to determine how much demand there is for jobs like this at a salary like that. This company started really high and then went low. However, in different economic conditions, they may have only got 5 applicants at $80k so they would’ve started increasing the salary to get a bigger pool of candidates.
Also keep in mind, this strategy only gives you “surface level” data. Sure, by lowering the salary, you still had 2,000 applicants but how qualified were those 2,000 applicants? If the company was looking for senior level talent (which in this case they were not) there’s no way they could acquire that for $80k. They were willing to spend more time and effort training an entry level newbie. What you can’t afford to pay in money, you will need to sacrifice with your time. And who knows..perhaps this particular role did not need a senior level person. So, maybe it was good business decision in the end. Plus, it’s also allows an entry level person to learn and gain experience and gain enough skills to put their career on a solid trajectory.
I have to wonder about working there if they don’t seem to care about the quality of the candidates, especially going from less than half the original posted salary. You get what you pay for.
My company kind of did something like this: they “reorganized“ our business unit and made us all reapply for our jobs, for less money and changed the staff from hourly to salary…so no more overtime, effectively reducing everyone’s salary by about 20%-30%. They told us to take it or we would be “self terminating” and our jobs would be reposted in a few months for the public to apply to. No one left (unless they were terminated for performance issues) and everyone took the lower pay. They felt they didn’t have a choice with the job market the way it is. I noticed they started posting open positions last month with starting pay at $20k less than what they offered my staff. Just really sad.
Conversation Starter
that's horrible! Let us know which company this is if you ever leave
Conversation Starter
wow I hope this isn't real