It’s just not reality you’re describing. Here’s some reasons why:
- 1 employee may just be better/more valuable than the other for a variety of reasons. Promotion isn’t always an option or even the right call. So we have a range/band we compensate into. This allows raises based on merit and adjustment when needed.
-location matters. Cost of living is a thing. I’m not going to debate if it ought to be this way, just that it is.
- 1 employee may have had a offer from an competitor. We want to keep them but can’t use a promotion to do so for a variety of reasons. For instance, promotions cone with equity and that means approval from a pool that may not have anything easily available. But money is there and easier. So we offer more money to stay. The employee earned that by seeing what the market values them at. The other employee isn’t automatically granted a raise because of that.
-negotiation matters. The time you’re hired natters. Your pedigree matters. There’s a lot of reasons 2 employees will have different pay.