There may be reasons for pay inequity

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Dear Joan:
Fourteen months ago I was promoted to a middle management position after being in supervision and department management for three years. My area of responsibility is larger than that of my peer group within the company, and I am responsible for more employees and larger departments. Recently, I discovered an outdated file pertaining to salaries from 1984. The information in the file shows that several of my peers (both male and female) are paid substantially higher salaries than I am receiving for the same position. The differences are anywhere from 30% to 100%.

My performance evaluations have been excellent and I often am complimented by my superiors. I am happy with my job and do not wish to jeopardize my standing; however, the inequities in compensation seem to be grossly unfair. How should I address this situation to my superiors? Annual increases are due in January, and I will only become more upset if this continues for another year. Should I speak to my boss now or wait to see what happens in January?

Answer:
Speak to your boss now. If you wait to see what you're given in January, it may be too late to get more.

As you're probably aware, many businesses conduct meetings among top level managers to divide merit dollars. If you arm your boss well in advance, he or she will be in a better position to fight for your share. If politics play a big role in your company, your boss may need to begin campaigning now.

Before you charge into your boss' office, do some careful planning and discreet checking. Search for a logical explanation. For example, a 30% difference could result from your peers having seniority. Salary ranges normally have a 50% spread. For instance, if the minimum salary for a job is $100,000, the maximum would be $150,000.

However, the 100% difference is too wide to attribute to seniority. Perhaps your peers have more accountability. You mentioned that you have more employees and larger departments but do your departments generate income or cost the company money? If you manage staff departments (cost centers) instead of line departments (profit centers), you will probably earn less. You may have more people but it's their job functions that count.

It's also possible that some salary adjustments have been made since 1984. The file you discovered was outdated, maybe your information was too.

If you are convinced that no reasonable explanations exist, it's time to rehearse what you'll say to your boss and prepare some documentation.

You are in a good bargaining position. You have an excellent performance history and the company has invested time and money in your development and doesn't want to lose you.

Make copies of your performance reviews, complimentary letters and any other information that supports your position. This might include organizational charts or job levels of your peers' subordinates.

Don't schedule a meeting on your boss' calendar until you've collected this data. If you schedule a meeting before you're ready, your boss may call the meeting early and you won't be fully prepared.

Start the meeting by saying, "I'm happy with my job and do not wish to jeopardize my standing but I've discovered something I must discuss with you. If I don't discuss it with you now, I'm afraid I will become more dissatisfied next year." Then ask your boss, "Is there some other information I am unaware of?" This will give him or her a chance to clear up any misconceptions - if there are any. If you're not satisfied with the explanation, state your case in terms of your position and accomplishments, not by demeaning those of your peers. End the discussion with a strong but positive statement, "I know you have my best interests at heart and will do what's necessary to correct this inequity."

If you don't see something extra in your Christmas stocking this year, you'll be facing some tough New Year's resolutions. Good luck!