QUESTION: It is difficult to convince the manager that I am underpaid.
FACT: The management has already exercised due diligence In determining the salary.
Employees make up Weir-minds and set an expectation about the increase in salary they would like to see. This is based on their interaction with their colleagues and with friends in the industry. The manager’s job becomes difficult as it is. always a mind game to convince the employee that the increase in his salary is appropriate. However, despite the manager’s due diligence, it is probably impossible for him to keep everyone happy on the total compensation package. The manager is well aware of the background against which salary is determined. Salary Is fixed based on multiple factors: a market survey; a company’s desire to position itself in the industry with regard to compensation; a person’s performance; and the salary and the job level where he is currently positioned. These factors are used by HR to develop a framework for the salary increase, which the managers then decide for their team members. Employees have the expectation that once the issue of a salary raise is taken up with the manager, he will be able to do something about it. In reality, there is only a slim chance of any such correction unless the manager and his boss discover that some major flaws had crept in while determining the raise. The normal response would be that they would look into it when the time came for the next raise.
There are two major sources of complaint. The first, as discussed above, arises from the employee’s expectation about the hike; the second occurs a few days after the hike when the employee comes to know the salary levels of his peers and makes a comparison.
Salaries can be different for different people even with similar backgrounds, roles and performance rating. That is because people are placed within a salary range and all do not get exactly the same salary. This difference is considered ‘smoke or minor, and is acceptable from an HR perspective. And it is incorrect to believe that those who are getting more now will continue to get more every year. It is also not true that the difference between two people’s salaries will remain the same. It could shrink, expend remain the same or, hi’ a few cases, suffer a reversal—that is, the one drawing more this year could draw less next year in comparison with another employee. As the employee’s contribution plays a major role in the determining. of a salary hike, he should concentrate on improving his performance. And in case of any concern, it is better to have a meaningful dialogue with the manager who, with HR’S help, would explain to the employee the process and the reasoning behind the increase. Transparency in communication will help in answering why employees are paid at a certain level.
WHAT CAN YOU DO AS THE EMPLOYEE? You need to understand that the salary you get is your current market value as determined by your organization. There is no harm in raising the issue with the manager and telling him about your expectations. If your colleague’s salary is the ‘sole reason behind your discontent, then you can speak about it without mentioning the colleague’s name. But you should not have any expectations of correction as that rarely happens. If the response from your manager is negative, then it is better to move forward; otherwise, it will start impacting your performance due to a lack of focus at work. If you are -still not able to come to terms with the feeling of being denied the right salary, then you should get first-hand information on your market value. Surely, any new company, if it’s interested in hiring, will have to pay more, .but will this change be worth it? That question can be answered only by you.
WHAT CAN YOU DO AS THE MANAGER? You should not shrug off the question from the employee, but pay attention to it. You should take another look at the employee’s salary package, and if you feel that a mistake has been made, you should rectify it. In admitting this mistake, you should not worry about him it might affect your image before your superior and HR. Sometimes, you can recommend a token correction as a gesture to show that you cafe for the employee. Even the employee will understand this tokenism. In a majority of cases, there will not be any change; and if the employee is not satisfied with the response, then you should involve HR in the discussion. If the employee is still not satisfied, then you should arrange a meeting between your manager and the employee. This wig provide your employee with the reassurance of being heard by the next level of management. Be prepared with alternatives in case the employee decides to leave.