I just found out someone below me is making $10 more an hr

Question

I recently got a raise and a salaried position! I was so excited. But today at work I was talking to a coworker who let it slip that his pay is $40/hr.  Meanwhile, mine is only $30 and I have more certifications. I just signed the offer last week and while I was thrilled to have good work — especially during all of this — now I feel kind of cheated. What should I do?

Barb Hansen · Answer

I ask your HR department (or search the companies intranet) to see what the companies written policies are on gender wage equality (before you talk to them about your situation).

Then I would have a meeting with HR to talk about your specific situation.  You don't know that other employee's wage is -- you only know what he said it was (and sometimes people lie), so I would ask the HR department to investigate the issue.

If there isn't a HR department or after your meeting with them, you don't feel like you have the right answer, then I would talk to your direct manager about why it appears that someone with less experience is making more money than you.

Be prepared to negotiate a raise -- they may not be able pay you what you should be making immediately (some companies have wage-increase rules about what % can be given per year - which is a stupid rule).  So if the opportunity arises that you can negotiate a raise - you may need to negotiate a bonus or extra vacation days (some other benefit) until the company can square your wage (next quarter, next year).

If they won't give you a raise, then I would start looking for a new job.

J Acharya · Answer

I was in a similar position a few years ago. I signed on at a certain salary level, and my male peer let me know a few months later that he was compensated at over 50% more than me. He was a few years older than me, but that did not justify such a large gap.

Unfortunately you have to be careful when negotiating raises based on what a peer makes, because pay is highly subjective and your boss can always give some vague justification of why he deserves more than you, ultimately getting you nowhere and making you come off as greedy (not saying it’s fair or right, just the way it is). A better way to negotiate a raise is to find out from your boss or HR what the pay range is for your position and where you are in that range, and then when you’ve been in the role for a few months minimum you can ask for a raise based on the pay range and the “market/industry standard.” This number can absolutely be based on the 40$/hr your peer makes, but this way you’re not basing your entire ask on what he makes. Your pay in your employer’s eyes is tied to your accomplishments, your worth to the company, and (sadly) the lowest number they can retain you at - not what your peer makes. So it’s wise to base negotiations on those factors.

If a fair and straightforward negotiation does not work, you can absolutely bring up the pay discrepancy, and it’s totally possible it will pay off. But it’s more likely that it won’t, so you need to be prepared to not get the raise and also make things awkward between you and your manager. Worst case, they earmark you as someone who feels underpaid and you’re on the short list to be let go when there are layoffs.

I don’t want to discourage you from asking for and receiving fair pay. This is just based on my experience and copious research. In the end I had to leave the company to get a fair salary. My boss and the leadership team was willing to lose me rather than pay me a fair salary, despite me exceeding expectations year after year. Things like this aren’t fair ??‍♀️

Anonymous · Answer

Congratulations on your promotion!  I’m so sorry for how that must have made you feel. I have had that happen to me with a colleague who constantly made mistakes and customers would take it out on me when they called to fix it. I would suggest doing some research in Glassdoor to see if anyone has posted salaries, and then make a list of your own certifications and qualifications. Once you have all that information, speak with your manager/hr one on one. It doesn’t hurt to ask and I’m a firm believer if you come from a place of respect and facts, it’s much easier to discuss. When this happened to me, I spoke with my Manager and said that it had come to my attention that there was a difference in our wages. Turns out, she didn’t know because the director and CFO  had control over wages. However, she went to bat for me and she was able to get me a new title that came with a better wage even though Upper management was  upset because wages were supposed to be confidential. So, it doesn’t hurt to ask. And if they push back, I agree asking about the company is working on gender wage equality. Even if there are annual wage increase caps, having a professional respectful conversation shows you know your worth and can advocate for yourself. You’re an asset to them! Best of luck!

Karisa Karmali · Answer

I would focus on making the case for a raise, not addressing who is making a higher pay and why, but a case for what makes you worthy of more. From a place of poise and power.

S. Maly Ohrenschall · Answer

There are many factors that go into wages and why even after your wage you are 25% lower. I do not think there is a good way to address your salary vs one other colleagues. Most managers or HR reps will tell you they will not discuss salary differences etc.

Unfortunately, women are often disadvantaged by many factors that don't even include intentional discrimination. Men typically negotiate salary more often, apply for jobs even when they don't meet every qualification and those among many factors lead them to be paid much better.

To continue advocating for yourself and ensuring the company is on top of potential gender and/or race related wage gaps it's helpful to understand the internal salary range, pay for performance philosophy etc. I would avoid approaching the conversation from the perspective of your pay and focus on how the company ensure they do not have gender and race gaps in pay and see how you can understand the philosophy and be an advocate for continued work to bridge any gaps.

Maggie B · Answer

Document it out and bring it to HR's attention after a few months.

Kimberly Moon · Answer

I had a similar issue at my old company.  I referred a friend to a role at the company I was in.  He got the job and they offered him ~$6k/year more than me for the exact same role in the exact same department.  He had a bachelors in an unrelated field and about 2 years of experience.  I had 6 years of experience and a masters in a related field.  I brought this up to management and HR and they said it had to do with timing and budgets and would not elaborate and refused to make any updates to my salary.

This is a tricky situation.  If it were me, I would talk to management and/or HR and see what can be done.  If they seem like they don't care or are giving you the runaround, it may be time to ask yourself if you're in the best company for yourself.  Good luck!!

Terry Morris · Answer

You are in a tricky situation. Are you contractors by an chance?  If you are, I would definitely contact your HR department and see if maybe the contract rate has changed for your jobs. Sometimes, the ones who have been there the longest are the lest paid because of that.

Also, another thing to consider is his previous salary. If he was making $45 an hour at his previous job, his offer would be a higher salary than yours.  It would have nothing to do with male vs female.

Good luck.

Anonymous · Answer

He may have qualifications that you are not aware of, justifying his higher salary.  You may be able to find this out by working with him for a while, and perhaps even learning from him, also. Another consideration is that he may be a better negotiator.  In your shoes, I would be glad for the raise, do my best to add value, document my achievements to use at my next review, and do some research to determine what the remuneration rate is for your position and qualifications in similar organizations.  This will prepare you for your next negotiation.  Then, at that time, if you still feel compensation is unfairly determined, interview with other companies and perhaps leave.  Sometimes the best way to get a better package is to change companies.  Do be sure to 'compare apples to apples', though.  Sometimes there are perks with the current company that you take for granted.  Be sure to factor these in.

I just found out someone below me is making $10 more an hr

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