Well, it depends on the type of honors and what degree the fresh
grad is holding.
An engineering degree not of first class honors isn't going to
help much nowadays.
For the average general graduate (non honours, non scholar) it
depends on your luck and timing of graduation.
If you graduated during the recession lows of the economy, your
salary could be as low as a fresh graduate who finished school at
the economy boom even if you have worked for a few years more than
the fresh grad.
And illustration - eg. You graduated in 2003 during the SARS
outbreak. You were lucky and managed to get a job but at a
low salary eg. $1,800. After 2 years, you got an increment to
$2,000 when the economy was starting to pick up. 1 year later
in 2006, you got a promotion with a 20% increment to your salary to
$2,400. Sounds good right?
Imagine a fresh grad who finishes school in 2006 who joins your
company. Because the economy was starting to pick up, her
starting salary was $2,400 which is eactly how much you are getting
paid now in 2006 even though you have 3 years of working
experience.
If a company can save a bit of money, it will. 