What to do if you find out a co-worker is paid more than you

We imagine you’re reading this article because, as a result of what you’ve discover, you want to negotiate a pay rise because you think you’re being paid unfairly. This is totally reasonable, but you do need to be sure you’re being paid unfairly. Perhaps the best way to do this is to play devil’s advocate with yourself by considering questions like:

• Are mine and this person’s roles identical? While you may have some overlapping responsibilities, could they be performing extra, or more specialised, tasks that warrant earning more?
• Are our roles categorised differently? This is similar to the above, but is more related to the company pay structure. Many organisations have salary bands, often given letters or numbers, with associated pay grades. Even if you think you’re doing the same work, if they sit in another salary band, this would explain the difference. Crucially, this doesn’t mean you can’t ask for a raise if you think the setup is unfair, you might just need to tweak your reasoning.
• Are bonuses involved?  In some roles, sales in particular, incentives are often offered in the form of bonuses based on performance. If you overheard the person talking about their salary, could they be factoring in these extras?

If you’re satisfied that there doesn’t appear to be a fair reason for this person being paid more than you, the next step is to do some research so that you can present your manager with a good case for why your remuneration should be increased. 

While businesses should obviously pay their employees fairly, it’s usually better to come with positive reasons why you deserve a raise, as opposed to simply saying you think the current situation isn’t fair. This is because your manager will usually need to get approval from the even higher-ups to raise your salary, so this will help them make a convincing case.

Important things to focus on in this pre-meeting planning include:

• NZ-wide salary ranges for your role: if you can show that you’re being paid poorly not only relative to this one individual, but also in the wider context of similar jobs across New Zealand this adds significant weight to your argument. While openly
• Your results: cherry pick two or three of your biggest recent achievements and use these as proof of the value you bring to the table, and therefore why the company should be desperate to make things right.
• How it makes you feel: while you don’t want to bring too much emotion into the upcoming chat, it’s totally legitimate to tell your manager how this pay discrepancy has left you feeling. Many modern businesses talk the talk when it comes to valuing their employees, so if you feel undervalued as a result, let them know. The reason we include this here is that it’s important to carefully think about how you’re going to word this. If you decide to wing it, you could find that your initial anger takes over, meaning you could say things you later regret.

The planning we talked about in Step 3 means that you should be in the best possible position when it comes to actually talking to your manager. However, a few additional pointers include:

• Give your manager a heads up: talking about pay can be awkward, so it’s a good idea to let your manager know ahead of time that this conversation is about salary. This means they won’t be blindsided by the conversation when it starts.
• Make reference to the fact that you know about the pay discrepancy: This sounds obvious, but some people begin these conversations as if they were routine pay negotiations. While you shouldn’t make reference to your discovery in a way that makes it sound as if you think you have all the power, your manager needs to know that you know. That said, we’d recommend avoiding naming names and exact salaries, there’s no need to bring anyone else into this. A statement such as “I’ve become aware that a/some colleague/s is/are being paid more than I am for the same role, and I’d like to discuss this” is a good opener.
• Don’t down-talk your colleague: talk about yourself in a positive light, not about them in a negative light. For example, 100% avoid saying things like “they’re getting paid more, but I’ve achieved way better results recently”, even if this is true.
• Don’t take no for an answer: ultimately, you can’t force your boss to give you a raise. However, if they tell you they can’t do it right now, politely make it clear that you don’t consider this matter closed. Ending the conversation with a question like “when would be a good time to revisit this?” is a professional yet powerful way to indicate that you’re not content with this outcome as a long term resolution.