As a former senior leader in analytics roles at Amazon, eBay, and other organizations, I've frequently witnessed employees cite tenure in their list of reasons for deserving a promotion or a raise.
I was reading about a similar situation where an hourly retail employee was lamenting about receiving a 2% raise, even though she had been an employee for five years. In a capitalistic world, companies care about getting the most value for the lowest cost. While this feels brutal and unfair at times as an employee, most individuals behave the same as a company if they had to give out promotions and raises.
If the person with no experience costs $40,000/year, but helps the company generate $100,000 in sales revenue, the company is getting a 2.5x return. But if the company pays the experienced person $200,000/year and that person help the company generate $1,000,000 in sales revenue, the company is getting a 5x return. In this case, the company is getting more value by paying more, but paying more doesn't always equate to more value.
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