There are times when HR knows an employee is underpaid compared to the market, but can’t fix it immediately due to internal constraints. Having that knowledge and not being able to act on it creates real tension.
How transparent should HR be about pay limitations?

likefunny
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Does HR at your company have authority to change people's pay?

The only thing HR should do is to let leadership know that there are employees who are under market (and, presumably, also low with respect to others in their departments or in similar jobs), name them, and recommend an increase.

We need to get out of the mindset that HR has any authority over anything. We advise, but we can't dictate.

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Good answer. You hit it right on the head. We can make recommendations and have a discussion. But we can't force something that is not our responsibility.

like

Show them the data, and address attrition risks.. and potentially legal risks too if it appears they're making less than their peers because of other characteristics not related to performance.. for example, is this employee a female and all her male peers doing the same job and performing at the same level make 50% more than her? if yes, flag it and make sure you have in writing all the risks so they can't come back and say you didn't advise them. in the end, ball is in their court as the business leaders.

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