Should you be earning more? There’s only one way to answer that question objectively: Gather data on what others earn—not just in your industry, but also from within your own company. The idea of talking about salaries with co-workers might initially feel rude or invasive, but some management experts encourage it.
Denise Rousseau, professor of organizational behavior and public policy at Carnegie Mellon University, says salary transparency helps improve pay equity—that is, equal pay for people doing similar work, regardless of their gender or ethnicity—and employee trust in upper management. When there’s a clear formula for determining salaries, all workers are more likely to be paid what they’re worth over the long term. That, in turn, creates a sense among employees that the organization treats them fairly.
If you’re worried that your company or organization doesn’t want you talking about what you earn with your colleagues, breathe easy. The National Labor Relations Act says your employer can’t prohibit you from sharing that information. There are exceptions, but most private-sector employees are protected by the act. You should check to make sure it applies to your situation, though.
Of course, just because finding out how much co-workers make is valuable and allowed doesn’t mean it’s easy. Here are ways to approach the conversation so you can maximize the potential positives and avert any awkwardness.
Dig for Some Data
Before you talk with a co-worker about pay, research salary ranges for your position. Be sure to factor in your location; the same job is likely to have different ranges in places with a high cost of living, such as San Francisco, compared with more affordable areas, like Phoenix.
Start by checking PayScale, Salary.com and Glassdoor, which are perhaps the best-known sites for researching salaries. But don’t overlook the Bureau of Labor Statistics, a government agency that tracks pay in its Occupational Outlook Handbook. Consider other sources, too, including professional organizations in your field. Staffing firms also publish salary guides. For example, Robert Half offers both a downloadable guide and an easy-to-use calculator.
Big companies often post salary ranges for positions on the corporate intranet or make them available through the human resources department. Internal job postings may also include salary ranges, giving you an idea of how much a position similar to yours pays.
Job coaches are another resource for gathering data on salaries, as well as the right job titles to use in your research, says Sonja Price, senior career strategist with Dynamo Careers. The title should align with your skillset—not necessarily the title you currently have.
Prepare to Broach a Sensitive Subject
Not everyone you work with will feel comfortable discussing how much they make, and talking about your salary does create some risk for you. The person you share it with may promise to keep the conversation confidential, but there are no guarantees they’ll do it. If you have a colleague you know and trust, start there and see how the conversation goes.
The chat may be easier if you talk in ranges rather than specific amounts. You could start by sharing the data you found in your research so that you and your co-worker have a common frame of reference.
You could also raise the topic around the time your company usually gives annual raises or does performance reviews. One way to open the conversation is to say how tough it is to feel confident you’re paid fairly if you don’t know what others make.
If you don’t feel comfortable asking your co-workers what they make, don’t despair. Price actually recommends against having these conversations because they “could be a big morale buster. Or people may wonder why you make more.”
She suggests contacting human resources and asking where you fall within the range the company pays for your position. “That will give you a good idea of what co-workers are making anyway,” she said. Most companies do market research on salaries when setting their pay ranges, so you can also compare your company’s range to the other data you’ve collected.
Be Ready to Make Choices
Your research and conversations may reveal your salary is in line with both market rates and your company’s pay ranges. Of course, you may find out that you make a lot more—or less—than your colleagues. If so, you’ll face choices you previously hadn’t, such as whether you want to ask for a raise or look for a new job.
The good news is that you’ve armed yourself with valuable information you can use to ask for a raise or negotiate a new offer elsewhere.
If you decide to seek a raise, Price recommends approaching the conversation in an exploratory way. Talk about what you’ve achieved for the company so far and say you’ve recently learned you’re earning a below-market salary. Then ask if there’s anything they can do to get you up to the market rate. “If your manager cares about you and wants to retain you, they should take the conversation seriously and see what they can do,” she said.
Elizabeth Whalen is a freelance writer based in Berkeley, CA. She loves writing about business, financial services and sustainability.
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