If you were an employer, which kind of worker would you prefer to hire? an inexperienced worker at a lower salary or an experienced worker ata higher salary
One of the major concerns of employer is labor cost since it influence their profits. Inexperienced worker at a lower salary is attractive if the employer focus on labor cost rather than efficiency. But recently, most companies tries to increase their efficiencies with experienced workers even though they have to endure higher salary costs. There are a few more concrete reasons why they have to hire experienced.
At first, employers do not have to train their employees if the workers have appropriate work experiences. For this reason, actually many companies prefer experienced and so competitive workers to inexperienced and novice beginners. According to Economy and Industry administrations, companies can reduce operations expenses when they accept only experienced workers rejecting beginners. Some might think higher salaries can be burdensome for company at the initial point. However, they have to consider training requires more money than that because education is not a simple task ; the company should hire training expert. the company should evaluate the result of the training and feed back it.
Second, often experienced workers contribute to boost their company or business. On the other hand, new employees can move to other companies even though their companies trained a lot. For that reason, many companies pull out a man of promise from the competitors. A famous information technology leader, Bill Gates who was the CEO of Microsoft, said in his graduation speech that A few smart people lead the rest of them in the world. I think business is the same. Experienced workers are likely to innovate and make the value for the future.
On top of that, according to economics theory, the more experienced workers the less time they use in oder to produce the same amount of products or services, so called experience curve in labor cost.
All in all, hiring experienced workers at a higher salary is more beneficial way. Beginners are hard to increase the productivity and have the possibility to change their job before long. Also, employer can reduce training cost and be blessed with experience function effect hiring experienced ones.