THE QUESTION
I found out recently that a new hire on our team is getting paid more than I am. We have the same job title and tasks, yet I have almost one year more experience than him in the role. I am pretty upset and would like to confront my manager about this and request a raise to at least meet the new hire’s salary, if not more. What is the best way for me to approach these negotiations?
THE FIRST ANSWER
Annika Reinhardt and Crystal Henrickson, Talent Collective, Vancouver
Although upsetting, unfortunately, it’s not uncommon for organizations to keep up with market pay when making a new hire decision, while neglecting to adjust employees already in the role. Consider this approach:
Be aware of emotions: Navigating negotiations when we feel emotional dysregulation can compromise our best efforts. Take emotional self-care seriously by processing feelings you’re having to support your ability to feel grounded and confident.
Gather information: It sounds like you have a good handle on your job description and job level. Gathering internal documentation (for example, job or career levels that define required years of experience and skills) can strengthen your position and back up your claims.
Be curious: Do you know your organization’s compensation and rewards philosophy? How about access to salary ranges? If the answer is no, now is the time to learn more. Ask your manager or HR to help you understand your organization’s compensation approach. Companies with a compensation philosophy will often provide employees with access to it. Also, in some provinces, pay information now needs to be posted on external job postings, which could provide insights into your position within the salary range.
Express your concerns: Meet with your manager to share what you have learned, to help you better understand the situation and reasons for the gap. Try: “It was brought to my attention that new hires might receive a higher salary than those already in a role. I’d like to better understand the rationale behind the differing pay rates.” Focus on the facts. Based on the information you’ve gathered, and if needed, external market data, propose a salary that aligns with your contributions.
Approaching your negotiation with curiosity and facts will increase the likelihood of a positive outcome and can also help address this issue for others by initiating a more company-wide change.
THE SECOND ANSWER
Neha Khurram, founder, Beam Career Coaching, Toronto
It’s not uncommon for new hires to receive higher pay than existing employees given shifts in market dynamics and competitiveness of the talent pool year over year. Most roles have a lower, mid and upper range for pay commensurate with a candidate’s experience (prior scope of responsibility), pedigree (notable brands or previous titles held) and the impression they deliver during the interview process. Employers often have higher expectations from candidates at the upper range of the compensation band so it’s worth considering whether the new hire is bringing in new skills or acumen to shore up your team and if you can learn from them.
To express the valid sentiment of inequity, first examine the reasons for the discrepancies. Research your company’s compensation philosophy, which may be shared on your internal knowledge management system and your offer letter. Once you’ve reasonably assessed the new hire and your company’s policies, you can prepare your conversation with your manager to understand what areas you can develop in preparation for your next pay raise cycle (oftentimes this coincides with annual or semi-annual performance cycles).
Be sure to lead your conversation with enthusiasm for your role and share your accomplishments before demonstrating your research on the company’s compensation philosophy (if not available, ask them about it), and acknowledge the new hire’s good traits and contributions if any stand out. Then begin to question: “Based on what I’ve shared, am I eligible for a salary top-up to match my peers? If not, can you share the rationale and what steps I can take to work toward a raise to match my peers and acknowledge my tenure in the same role.”
Your research, tone and openness to feedback will matter. If you want your manager to advocate for you, provide them with good data points to steer them toward your goal. If they aren’t interested or are unable to support your growth, it might be time to look for a raise with a new role or company.
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Andrea Yu