Dh earning less than some members of his team

[Chippychop]

Dh has been in role 6 months and just found out he is being paid much less than his peers and on an equal basis to some of his 26 team who work for him.His job is much bigger with more responsibility than most of his peers. He has had a glowing appraisal and is recommended for directorship already. When his boss learned of the discrepancy (she wasn't the recruiting manager) she said she'd address it and bring him in line with his peers. This hasn't happened in the recent pay review. What can he do? He loves the job and the company but by their own admission isn't being paid market value. We are talking a considerable amount of money to bring him in line. (£30 -£70kpa).

Well options are -

1. Have another chat to the boss and remind her and hope she sorts it.

2. If she still does nothing he may have a claim for constructive dismissal for breach of the mutual term of trust and confidence. Extremely risky though and you'll have to have some sort of proof that she promised to fix it (not just oh I'll look into it). He's have to resign very promptly after he realises they are not going to sort it or after she refuses. Is it actually in her power to fix it?

Not really much else he can do. He wont have a claim under the Equal Pay Act.

There must be a reason for it and I suspect youre not giving us the full picture.

What was the job advertised? Does the contract specify pay ?

He got the role via an agency who initially talked to him about another role which the company didn't feel he was suitable for ( that role now reports into him). The company asked him apply for different role but at the time weren't specific what level it was or the total responsibilities were. This i think was due to the fact his manager was going on secondment and her role was being divied up. The salary he was offered was at the first roles level. Since then he has been like a duck to water, his appraisal was all over achieving on objectives and his manager and her boss have agreed he was brought in at the wrong level. The big group md even announced to a group how he paid dh 'shit'. And in the annual pay/bounus review told him he wanted to see dh with a 1 in front of his salary but it may take a couple of years to get there - which is nice. It doesn't address the issue that dh is being paid less or marginally more than half a dozen in his team. Sorry to go on, hope that's clearer

Chippy - the only thing he can do is find another job and threaten to leave. If they know he can't leave then they will do nothing.

Pay is subject to individual negotiation. If he isn't happy with what he's getting paid he shouldn't have taken the job. Bear in mind that at the moment the job market is crap so people have less bargaining power. Those taken on during the boom years are likely to get paid a lot more.

Ah only been there 6 months? No constructive dismissal claim then. Sorry I missed that. Unless he has been there longer but only in that role for 6m.

DH has been in this position more than once. People are brought in with specific expertise, and although he is their line manager, it costs what it costs to buy in what they can do. DH reasonably (if not completely) OK with it, as all career building stuff for him. In fact he goes all at my profession (teaching) with its rigid pay structures, although with the rise of the academy, I see that all disappearing too...

The co probably had to pay a huge chunk to the agency. That'll be why his salary is lower.

If he's had an appraisal it would give him ammo for a pay negotiation ?

He had an amazing appraisal - most indepth I've ever seen. I think the problem has lain in the fact that no party was clear over what level his current job was when he was taken on. DH had applied for a more junior position and got a senior role but the money didnt alter- and as i said earlier the more junior job reports into him on virtually the same money. Unsurprisingly they cant do anything until next years annual review and wont committ to anything in writing. To rub salt into the wounds he received an email inviting him to celebration drinks for his promotion - which he didnt get as he'd only be there 4 months! Bloody Corporates!

When his boss told him that he wouldn't be getting the pay bump at this pay review what reason did she give him?

i think he just needs to bring it up again, no-one is going to go out of their way to force this issue.
i think they will do it, and they should do, and there is no excuse for not doing it, but might take a while

DH's boss told him they cant raise base salarys more than 25% in one go. DH said he would need c50% increase to be on the same level as his peers operating in similar roles across the business. She agreed (as did her boss) he was simply brought in at the wrong level and certainly not being paid market rate(the recruiting manager is on secondment). He has been asked to "trust" them that they will increase his salary but it may take a couple of years...meanwhile he's been told to continue doing what he's doing as he's on course for promotion to director next year.fancy that! It's certainly taken the shine of his new job I can tell you. I think l the only way they will honour it is if he finds another role and hands in his notice.But its taken him ages to find this "dream" job having moved from an agency life (who get paid much less) to corporate

He needs to get all of that in writing. Corporates or not.

If he interviewed for one role and was hired into another he simply must insist that he is paid for the role that he was hired for and does.
Often during interview someone isn't right for the role on interview but a general banding higher or lower. The offer is made based on the role that they think is right for him.
40k difference in staffing salaries, unless they are highly technical contractors, sounds odd

Sounds very irregular all round

Sorry
Why didn't he get a pay raise at review? Once the realised there was an issue.
Why won't they commit intentions in writing?
Could they pay a bonus in lieu whilst his salary catches up?
what promotion? Why did it fall through?
Why would the M D of a corporate say he was paying him a "shit" amount

Sounds dreadful

"can't" my backside. Won't. Even so, if they "can't" increase salaries more than 25% in one go has he just had the first 25% and been guaranteed a date for the remainder, both of which they could do? Thought not...

He needs to make his dissatisfaction with this clear, he is not being paid for the role he is doing. Can he start looking around for something else?

Is there an HR department he could speak to?

Perry how can you insist they put it in writing without blotting your copybook?

-He didnt get a pay rise as everyone on his banding has a base salary pay freeze.
-They wont put it in writing because they cant guarantee to uplift him to what is required. I think because they cant predict how the business/market will perform
-he did get a bonus in line with his performance review (over achiveing) but bonuses were capped in his company this year
-DH was nominated for promotion to director after 4mths (this is a convoluted process where he needs and got all the relevant support) but was turned down because he didnt have enough exposure across the business. Which is true but was told all he has to do is contunue what he is doing "and not change a thing as he is operating at director level"

• MD said that because..well your guess is as good as mine....I think because he had an audience at the time and the guy shuld have been more professional

the main issue is he is being paid the same as some of his direct reports and a lot less than his peers despite outperforming in his role

If they can't do more than a 25% increase (bollocks IMO), then they should've signed off on that 25% increase, effective immediately, and guarenteed the next 25% in 12 months - with, in the meantime, some serious perks (bonus, time off, etc).

The fact that they didn't shows they don't value your DH - dangling the carrot of directorship but no move towards paying him the correct salary is just an insult.

I'd suggest he start looking elsewhere.

He could always be pretty open about looking elsewhere. Might put the wind up them.

XH booked a couple of afternoons off and left wearing a suit - it did work.

If your DH keeps working for (relative), peanuts they'll keep taking him for a ride. Being a 'good guy' about it won't garner him any more respect.

This situtation is fairly common where I work in the City. Managers earning 20k less than their staff members, a person earning double for the same role as someone else. It all depends on the salary you negotiated when you first joined the firm, after than pay rises are fairly standard eg 5 - 20% and also perhaps capped.
I don't think he can force them to do anything, but off course he should keep pushing especially when it comes time for a pay review. Probably the only way he could achieve a huge rise would be to secure a new job and threaten to leave.

kotuku - yes I agree about the City. You get what you negotiate and negotiating usually involves getting an offer somewhere else and threatening to leave if they dont better it.

Being the good guy makes you weak..

i have a similar situation in my workplace. I've asked for 30% increase to bring me in line with what I should be earning, and I am performing at that level also. Management have said, it's unlikely, as they have to get an exception to policy signed off by the global unit manager for more than the standard raise.

Do they have something like this that he can push for? Agree with Flowery that it's more likely a won't in his case than a can't. There is always a form that can be signed to solve any problem IME.

His employer hasn't handled it at all well - they shouldn't be dangling carrots like that. They may genuinely value him and have hands tied by existing agreements (but there are very few situations where there isn't a quiet way around them if an employer is really determined to reward a good employee!)
But unfortunately your husband signed for the lower salary and is stuck with that for the moment.
If I were him I'd gather all the positive feedback I could get in writing, evidence of all good performance, and any evidence of promises made by management that have not been met. Present this to his boss and ask for a committment to having his salary package increased to equal his perceived value to the company. If he can break it down to figures ("I increased sales by 50%, which is equivalent to an increase in net profits of ?500,000 for the company") that would be even more effective.
The company can still say no, and then I think he would be well within his rights to start looking elsewhere. Obviously he should act professionally while doing so (continue to perform at the same level, give adequate notice, handover properly to his successor - after all, it's a small world and you don't want to burn any bridges!)

My comment as to 'can't do anything until next annual review' - BOOOOOLLLOCKS!!! Just neatly raise a formal grievance good naturedly and shrug and say 'my hands are tied by procedure - I have to raise it this way if I'm not happy it says so in your policy' and carry on as before - they may be grateful for him pushing - you can lose respect for someone who is due something that they are not asking for. In any case it is in their interests as this situation is guaranteed to demotivate and depress him and eventually that will lead to poor performance - perhaps his poor performance is above what they expect so he needs to remind them that he is on the crest of a wave of motivation and performance and will crash if he is not rewarded. Plenty of evidence in sales management and other management literature about this.

oh and go back to the agency and to other headhunters with the review information - this will imply to them that they are deliberately underpaying him for the qualifying agency period in order to reduce their commission - they may even do him a favour and call in to say that they have heard on the grapevine that they will be recruiting a new (your DH) in the future and would they like to see candidates especially if this rise would come in in the qual period.