I just found out that one of my coworkers, with less experience, is making $40k MORE than me. Can I use this knowledge to negotiate a higher salary? I know the market was stronger when they brought my coworker in, but I have been at the company longer, and we do the same type of work. Would you start a conversation with your manager in this type of situation?

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I see a lot of people talk about this and normally I would probably just leave it if I found out one of my coworkers was making more than me, but $40,000 is a significant difference. Like, a staggeringly significant amount of money. That's how much some people make in an entire year! I would absolutely bring it up and have that conversation with management, because it would bother me a lot to know that there was such a pay discrepancy in the workplace.

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honestly, that's why i don't even try to talk to my coworkers about comp anymore...someone is gonna be pissed. staying at a company longer works against you - you need to job hop in order to make big gains vs. your standard 2-3% each year. the only thing that will really help you is to get a competing offer on the table to use as leverage. i personally would never go to my manager being like, "i know tom makes $40k more." you could frame it based on the value you've brought to the company and recognizing that you are below market rate for your work, but even then, it's easy for them to say sorry bub, thems the breaks.

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Well if they’re paying someone at such a steep discrepancy, that’s frankly intentional and not a mishap by the compensation department. Either that coworker is so gifted that they have immediately slated them for succession to managerial positions in the future (so in the meantime they are sweetening the pot with a much higher salary), or they have really sucked up to management and are unfairly getting paid that much. Regardless, it’s a bad sign and if possible I’d look for another job. If you do manage to land another offer in this challenging market, that’s when I’d probably bring up the question of knowing about this huge pay gap and see what they say. Not that it would matter much at that point, but it would be fun to hear their rationale for the huge salary gap. Then they’ll cry about you quitting, because it’s never fun to lose experienced employees, especially if they are more experienced and productive than their most expensive worker.

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Yes, I’d start a conversation. I’d frame it around my performance and current market rates, rather than making it all about the coworker. But knowing that info definitely gives you leverage.

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Totally agree with this - usually management won’t be receptive to negotiating with you if your only reason is that you understand others make more than you (although wouldn’t say that’s an illegitimate reason). I think you can include that as a reason but it needs to be more than that - has your workload increased since you started? Any new education/certifications? Etc

It is hard to convince and this psychological thinking will make your life difficult so better change your employer, if possible but trying to discuss it with your manager won’t bring you any positive results

You can definitely try to use it as leverage but I wouldn't suggest telling them how you know that because I have gotten in trouble before for disclosing my salary. And you have to be prepared for it to not go the way you think it is going to go, they might tell you now and then you have to decide if it’s worth staying.

I would outline areas that you are most proficient in and also data that will help corroborate how you think that you are worth the extra $40k.

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