Dear HR Manager | Assessing Salary

Dear HR Manager,

A tenured employee on my team just found out we hired a new team member in the same position and level at a much higher salary. Both employees are in the same position and level within the organization. The tenured employee is rightfully upset. What should I do next to assess potential solutions?

– Wage Worries

Dear Wage Worries,

It is a fact – employees talk about salary. Start by investigating the situation.

First, gather the facts. Identify the reason for the salary disparity. Is it due to external factors like a competitive talent market or inflation? Alternatively, does it result from a difference in employee experience or role focus? Compare the skill sets and jobs of the two individuals. Given their knowledge, skills, and abilities, is there merit to a higher salary?

Next, bring the information to your HR team. A compensation audit is one technique HR professionals use to evaluate pay levels. Work with them to validate the pay range for the role and employees. In some situations, companies discover longstanding employees’ pay has not kept up with market increases, and an adjustment may be needed.

Alternatively, you may discover that the pay range is appropriate. In this case, HR can provide insight into how previous issues have been resolved and help you script talking points—partner with your employee to build a development plan positioning them for future pay increases. Your open communication is an opportunity to build trust in your relationship.

– HR Manager

SOURCE: United Benefit Advisors (UBA)