> It's downright silly to pay new employees more than experienced employees for similar jobs. If you can't afford to raise wages for the experienced staff you'll soon have a bunch of inexperienced staff that costs you more.

I agree, but the reality is that raising salaries across the board would kill the company immediately, while having ONLY inexperienced staff might happen, and even if it did, it only might kill the company.

Another factor is that a lot of the staff just won't move, even if they know they are being paid less.