ASK COACH LANI: My Coworker Makes More Money Than I Do. Now What?

 

 

Dear Coach Lani,

I recently discovered that a coworker with less experience earns more money than I do. I’ve been with my organization for several years and consistently receive excellent performance evaluations. I feel undervalued and frustrated. Should I confront my manager or start looking for another job?

Dear Underpaid and Over It,

Whew! I can understand why you’re frustrated.

You’ve been showing up, doing excellent work, meeting deadlines, and receiving positive feedback. You believed your contributions were being recognized.

Then you discover someone with less experience is earning more money. Now you’re questioning everything.

Before you schedule a meeting with your manager and let your frustration do the talking, I want you to approach this situation strategically because loyalty, experience, and excellent performance don’t automatically translate into higher compensation.

Organizations make salary decisions based on many factors, including market conditions, specialized skills, internal compensation structures, and negotiation.

And sometimes organizations simply fail to keep compensation aligned with the value of existing employees.

That doesn’t mean you should accept the situation. It means you need information before making your next move.

First, determine whether you’re comparing similar positions.

Do you have comparable responsibilities, qualifications, and performance expectations? Are there differences in specialized expertise or other factors that could explain the salary?

Don’t build your entire argument around what someone else earns. Build it around what you contribute.

Second, document your value.

And I’m not talking about writing down everything you’re responsible for. I want results.

Did you improve a process? Save your organization money? Lead a difficult project? Train employees? Solve a problem that had been affecting your department?

Be specific.

Your manager may appreciate your hard work, but appreciation and compensation are not the same thing.

Third, research the market. Look at salary ranges for comparable positions, industry compensation reports, and opportunities outside your organization.

You need to understand what your experience and expertise are worth.

Then request a compensation discussion. For tips to navigate difficult conversations, watch this video from my YouTube channel.

Ask what specific steps would make an adjustment possible and when the decision could be revisited.

If you’re a government employee or work in another structured compensation system, understand the applicable pay rules and available advancement opportunities.

And remember, you can explore the job market without immediately resigning.

I want you to stop believing that someone will automatically reward your hard work because you’ve been loyal.

Sometimes you have to initiate the conversation.

And sometimes the most important negotiation is the one you have with yourself about what you’re willing to accept.

Coach Lani’s Final Word: Don’t make your next career decision from a place of anger. Get the facts, know your value, and develop a strategy. You have options.