Based on the interviews I gave over the past 6 months or so, following is my view on the HR strategy followed primarily in IT servicing companies
Compensation offered to candidates is primarily governed by the skill set they possess; not on their expertise in the skill set. For instance, a highly skilled J2EE Designer will fall into the same compensation range as an average-to-below-average J2EE Designer. May be there is a slight advantage for the former, but not significant
This definitely makes the highly skilled ones, to explore their choices and ultimately go towards better opportunities. As a result only average-to-below-average folks join these companies (at least in majority).
Just a thought – In that case won’t the overall Intellectual Capital of the Company move towards the average?