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Original poster

Salary question

19 replies

Bhati · 22/08/2023 23:55

Has anyone came across the situation where your reports are globally spread out and they earn more than you ?? I'm UK based and my report is based in California. I know the standard of living is higher in California but I live in Cambridge UK which is pretty expensive place. One of my report earns more than me. Halo which doesn't seem right. Every time now when I bring up challenges working with her my director some how thinks I'm raising it as her salary is higher than me. It certainly bothering me but there are genuinely some challenges with her working style.

OP posts:
pjparty · 22/08/2023 23:58

No direct experience but I do remember my dad being offered a job in California years ago and saying that after researching, they realised that they would have been able to afford a postage stamp of a house in comparison to other locations. I think it's very very expensive, but I do get why you are annoyed as you are also more senior

Original poster
Bhati · 23/08/2023 00:01

I'm senior and have 6 more ten members to manage.

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Original poster
Bhati · 23/08/2023 00:01

Team*

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PassMeTheCookies · 23/08/2023 00:03

It wouldn't bother me. The cost of living is so much higher. The cost of health care, to name but one.

Original poster
Bhati · 23/08/2023 00:07

Totally understand the cost of living point

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call911 · 23/08/2023 00:11

One of my direct reports earns slightly less than me by £100s, due to location weighting. I should be on £8k more. It’s a bit annoying but doesn’t really colour my judgement. I’m aware cost of living in her area is so high that I doubt she’s any better off than me, but I also know some of her personal struggles and hope she can use the money on things that will help her, and help her be more productive at work once her stress is alleviated

NoTouch · 23/08/2023 00:17

Our whole US team has just been made redundant because it is too expensive to have staff there. You cant compare your salaries as there are just too many variables, it is like comparing apples and oranges. If you are not happy with your salary look at the market rates for your area /role.

grosslyunfair · 23/08/2023 00:20

I managed a global team. My salary was higher than most but not all of my reports, notably the US ones. There was also a bonus component meaning that if almost any of them had a spectacular year they would earn more than me. I thought this was fair given market rates, other benefits and job security. If you manage people globally you need to understand their market. Comparing your salary to theirs is not that relevant IMO.

Ohyousillydivvy · 23/08/2023 00:20

Don't you have to pay an annual property tax or similar in the US? That's probably why the salaries are much more because the cost of living is so much higher.

tilestoclean · 23/08/2023 00:25

Totally normal. I have worked in senior positions in different countries and regularly have reports earning more than me because I am still on a U.K. salary as an expat. U.K. salaries are very low when compared to California but the cost of living out there is beyond comparison with the U.K.

grosslyunfair · 23/08/2023 00:25

I also moved countries and earned substantially more doing exactly the same job for the same company. It was the market. If you have issues with your reports performance or behaviour address it. Let the salary issue go unless they are overpaid for their skill set.

Cheesypizzaa · 23/08/2023 07:55

This is really common. I've managed people in Scandinavia and been in the same situation.

eurochick · 23/08/2023 07:58

It's normal. I used to work in a US law firm and would often supervise very junior US lawyers who earned more than me. In U.K. firms the London associates will often earn more than some partners in northern cities on the same team.

Dazedandconfused10 · 23/08/2023 07:59

Benchmarking for each role is usually based on location and local salary for a similar role. You can't compare a salary in the UK and the US as they are totally different markets. Have you looked at what your salary would be if you lived where they did?

The same goes the other way, I have had team mates in India who to me seem vastly underpaid - as in 1/3rd of my salary, but for the location and the comparable they feel totally happy with their take home pay.

smartiesneberhadtheanswer · 23/08/2023 09:51

You basically get charged to breath in California. They need to earn double what we do to have the same standard of living. It's fine,

Original poster
Bhati · 23/08/2023 10:30

Good to know

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Original poster
Bhati · 23/08/2023 10:31

These responses are making me feel better but also good for my understanding.

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mosiacmaker · 23/08/2023 11:25

So normal. The cost of living in California is extreme and they have to pay for everything - eg healthcare. Coupled with the fact that they’re probably under a fire at will contract, have no redundancy protection, probably zilch maternity leave or sick leave or maybe even any leave at all - all these things mean they need a much higher salary as should really be squirrelling a lot more away as a safety net.

grosslyunfair · 23/08/2023 11:28

Absolutely agree with most of the comments- I had German colleagues paid much less than the US ones but who had almost total job security, legislation preventing evening emails etc. US colleagues were paid extremely well but expected to work much harder and could be pretty much terminated any time. UK model I found to be somewhere in the middle.

Try not to think of the salary as a measure of worth, but of the local system, and look at the challenging behaviours as an issue!

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