A manager was left fuming after uncovering a staggering pay disparity at her workplace. Olivia, a team lead, found out that she was earning up to £9,000 less than the employees she managed, sparking a heated confrontation with HR and her boss.
In a recent video, keynote speaker and entrepreneur Chris Donnelly recounted the unfolding drama, where Olivia's shocking discovery led to a flurry of tense email exchanges and a demand for fair pay. "I'm writing to formally address a concerning issue," she began in her email, pointing out the significant salary discrepancies and setting the stage for a fierce battle over workplace fairness.
"Dear Tom," she began in her email to her boss, "I'm writing to formally address a concerning issue that has recently come to my attention regarding significant salary discrepancies within our team." Olivia learned that after a recent salary adjustment, junior consultants were earning only £5,000 less than her, a much narrower gap than she felt was appropriate for her role and contributions.
Despite her contributions, including a 30 percent increase in client spending, Olivia believed she was underpaid. She said she would "look elsewhere" if the issue wasn't resolved.
In response, her boss, Tom, acknowledged Olivia's email but dismissed her concerns. "I understand your concerns," he wrote, "but I don't think you should be talking to all the grades about their salaries, especially not at the pub where this conversation apparently took place."
Tom also claimed that salary structures were "complex" and couldn't be easily changed. Olivia was not pleased with Tom's dismissal of her concerns. She replied, "I do not appreciate your comment about the pub. It was a Thursday, and everyone had abandoned me in the office for two hours. When I finally joined them, they were openly discussing how other firms would pay them more."
To Olivia's dismay, a new consultant and junior revealed their salaries, which were higher than hers. Furious, she left the pub feeling disrespected and undervalued. "People I was constantly reprimanding for poor dedication and poor work are being paid 20 percent more than me!" she exclaimed.
Unrelenting Pushback And The HR Showdown
Despite Olivia's clear frustration, Tom continued to dismiss her concerns, claiming they were "industry norms" and typical during "pay cycles and levelling." But Olivia was not backing down. "Being paid £9,000 less than people I manage, who have just joined the firm, is a slap in the face," she vented.
Tom's suggestion to wait three more months for a salary review only fueled her anger. "I was underpaid by at least 25 percent," she pointed out, adding that it had been going on for nearly a year.
A Bold Move: Olivia Takes Action
Frustrated with the dismissive responses, Olivia took matters into her own hands and contacted HR directly. As Donnelly described, she did this "in the most boss way," signalling that she was not backing down until the issue was resolved.
While her story is specific to her workplace, it highlights broader issues such as gender pay gaps, salary transparency, and the treatment of employees who go above and beyond but receive little recognition.
A recent Empower March survey revealed that Americans value an hour of their time at $240, or eight times the average US salary. Whether HR or Tom will address the discrepancy remains to be seen, but one thing is certain—Olivia is not going to let the issue go unnoticed.
Olivia's experience highlights a common workplace concern: feeling underpaid. If you suspect you are being underpaid, here are some steps you can take.
1. Research Market Pay And Your Skills
According to career experts, it is imperative to research market rates and your skills. "The term underpaid shouldn't be used to compare you to a colleague," said Sho Dewan, career expert and founder of Workhap. "It should be compared to you and the market, and there's always going to be a range in the market."
"Compensation has a lot of different pieces to it," Machado told CNBC. "It's not just a simple formula that's like years of experience equals this amount of money, education equals this amount of money, location equals this amount of money."
Aim for the middle of the range to determine your market value, considering factors like your experience, education, and location's cost of living.
2. Requesting Salary Adjustments
Many Americans are dissatisfied with their pay. If you believe you are underpaid, consider requesting a salary adjustment. Career coaches advise preparation for this conversation. Avoid mentioning colleagues' salaries and focus on market research and your performance highlights. Machado emphasises the importance of demonstrating your impact on the company. Cappelli warns against threats, as your employer may be reluctant to lose you.
3. When To Consider A New Position
If your employer is unresponsive to a salary adjustment, consider leaving, but proceed cautiously. An example highlights the challenges of negotiating fair compensation, as a job applicant repeatedly faced lowball offers despite clear rejection and multiple meetings.
"If that does not work out for whatever reason, that is when you need to [ask yourself], will I ever get paid what I'm worth?" Dewan said. "And if the margins of you getting paid versus what market value is [are] too crazy high, that is when you should look at other options out there."
If you receive an outside offer, you can attempt to use it to negotiate a higher salary with your current employer. "There are some employers who really want you to shake them down in the sense that they will match an offer if you get it from someplace else," Cappelli said. "It's a bad practice, but it is pretty common."
"Sometimes it's easier to just jump ship," Dewan said. "I ended up finding another opportunity, which happened to be way better. It was remote, a ... healthier environment," Harry said. "Ultimately, in the end, I'm now an assistant VP. Without that experience, I probably wouldn't have been able to get here today."
While Olivia's experience is specific, it highlights common workplace concerns. By understanding market rates, preparing for salary negotiations, and considering alternative options, employees can proactively address underpayment and advocate for fair compensation.
