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Discussing Pay At Work; Do We Do It Or Not? 8/3/2020 1:13:37 PM
For years as I worked at various jobs and companies in retail and corporate America, it was an unspoken rule that pay was not to be discussed with co-workers. As I moved through the ranks and was promoted to management and then promoted to a point where I was responsible for over four hundred employees and in excess of $35 million a year in revenue, I continued to support that philosophy as a leader without giving it much thought. For someone in upper management, it was viewed as a nuisance if an employee found out they were paid less than their peers for the same job because then you would have to stop what you were doing and discuss it with the individual who brought it up. As a good leader you would take the time to explain why, or try to get the situation rectified if there was, in fact, a discrepancy. Oftentimes, you would have to take the issue to senior leadership, who would then assess the situation and tell you if you could help or not. It was more of a problem we had to address rather than a solution-oriented focus where everyone should be seen, heard, and paid the same amount for the same job.
Fast forward to 16 years later when I found myself in this exact same position as a senior leader in my company. I was very close with my peer group and through those friendships discovered that I was paid significantly less than my counterparts for the same work. As if there was any doubt from the peer feedback, I was accidentally copied on a budget email for the year that listed everyone’s salaries, that confirmed it. Talk about rubbing salt in the wound. Even then, my counterparts across the country were hesitant to tell me what their salaries were, and when they did, they did it in sort of a hush-hush way. I immediately found myself with feelings of resentment and thinking of justifications why I should be paid the same.
“Money is so tied up with really complex and difficult emotions, like shame, success, fear of failure and how people view you,” said Brianna McGurran, a money expert at the personal finance blog NerdWallet. “So when you’re talking about how much you earn, or how much you’re saving, a lot of people end up tying that to their self-worth.”
I was often the Number 1 performer in my company, running one of the largest territories in the country. I was a consistent top award-winning achiever within the organization. I participated in extracurricular activities, such as driving diversity and inclusion programs. How could this be? Frankly, even if I was the one in last place and not even performing at the top, I should be getting pay commensurate to my peers, shouldn’t I? And then the final thought: there should be no justifications involved!
Now, don’t get me wrong. I worked with some amazing people, including my superiors, and I loved my job. At the time, I truly felt that I was overlooked and had slipped through the cracks as my territory and responsibilities continued to grow in size geographically and in volume. So I decided that I would ask for a salary increase. It took a lot of thought and strength to reach out and make the request. I decided that I would not be able to look back as a leader for women in the workplace if I did not step up and lead by example. I asked three different senior leaders to review my pay, and I made it clear that I was not asking for a merit raise but for my pay to be more of a true-up equaling that of my peers doing the same job. I waited for months and I never received a resolution on the matter.
“But unlike not disclosing what’s in your savings account or your 401(k), there are direct, concrete consequences for falling victim to salary secrecy, including wage suppression and a lack of transparency around pay inequity, which disproportionately affects women and minorities. “Let’s face it, it’s 2018 and there’s still serious disparities in pay based on race and gender,” said Angela Cornell, director of the Labor Law Clinic at Cornell Law School. “So policies that discourage or prohibit employees from discussing these are problematic not just because of the National Labor Relations Act’s clear prohibition,” she said, “but also because they can make it difficult for employees in the private sector to learn that there are unlawful disparities.”
Even though I never got the equal pay that I requested, I learned so much in the process. It was as if I had been sitting in the dark and someone reached up and pulled the string to turn on the light bulb. Pay should definitely be discussed at work, and, in fact, it is perfectly acceptable and legal to do so. And get this, it’s been that way since 1935 when the National Labor Relations Act was passed! The hush-hush system that was created years ago and ingrained in many company cultures today needs to go away, and there needs to be full transparency put in its place. As I continued to do my research, I noticed that many forward- thinking companies such as Apple and Starbucks list clearly on their website that they consistently review pay on an annual basis and sweep all employees to ensure that they are all paid equally for the job that they are doing. What an amazing public relations post for your company! And not only that, it protects you from future claims that someone may have been discriminated against. I truly don’t have hard feelings anymore about how this situation went. I believe that everyone involved, like myself years ago, was a product of the long-ingrained culture and environment everyone was “raised in.” In addition, I strongly believe that if executive leadership is truly data driven and sees the positive impacts of pay transparency on the profitability of your business, it will cease to even be a discussion or conversation.
Recently, my counterparts and I were experiencing a company buyout. Another company was purchasing us, and they were going to offer the majority of us jobs and salaries. During that time, I discovered this New York Times article, “Why You Should Tell Your Co-Workers How Much Money You Make”, which I’ve quoted a couple of times already. I decided to drop the article link in our group chat. It gave many permission to discuss with each other what their offers were in order to ensure everyone was getting paid accurately for the same job. I will never forget a phone call I got from a female leader across the country who encouraged me to negotiate for more money. That will stay with me for the rest of my life. There were still many who were silent. My opinion is they stay silent for a few reasons, such as fear of retaliation or lack of wealth consciousness. These individuals may make more money and not want to talk about it for fear that they will lose what they have or be reprimanded for discussing pay openly. My hope is that one day all of us have the strength to move from operating from a place of scarcity. When one operates from a place where they feel there is never enough for everyone, and one is hoarding and embracing those types of feelings, how can one ever feel truly wealthy and abundant in life?
So, the final verdict: I agree with the New York Times. YES! Discuss your pay with your co-workers, and, even more so, companies should encourage it! Imagine being a company that openly encourages wage discussions? The positive public reputation, employee retention and revenue returns gained will far exceed any losses in payroll incurred by ensuring everyone’s pay is commensurate to their peers who are doing the exact same job.
