Q: At my company, employees are told not to discuss compensation with each other, but I’ve heard about a new Massachusetts law that says we can. Some colleagues and I have some concerns about not being paid appropriately. How much trouble would we get in now if we discussed compensation with each other?
A: You’re referring to Bill S.2119, An Act to Establish Pay Equity, which will take effect in 2018 and is designed to support gender pay equity. It’s a complex bill, but here are three things it means for your situation: (1) it clarifies the definition and understanding of “comparable work’’ in terms of determining compensation; (2) it makes it unlawful for employers to prohibit employees from inquiring about, discussing, or disclosing information about their own or others’ wages; and (3) it prohibits employers from retaliating against employees for discussing or disclosing compensation information.
Comparing your compensation to someone else’s is not a simple or straightforward situation. Your coworker might be contributing more or have a different skill set. Their educational background, prior work experience, or specific responsibilities might be different. If the differences in these are minimal, then any difference in pay should be minimal; however, addressing pay issues is still — and will remain — your job.
Help your manager understand the value you bring to the organization. Baselessly comparing your compensation to a colleague’s is not going to motivate your manager to give you a raise, whereas detailing your contributions and successes will. Keep track of the accomplishments that illustrate your value. Have you saved the company money, made processes faster, or protected the loss of an important customer? These are the things that go into compensation decisions, and you are responsible for communicating those accomplishments or new skills to your manager in formal reviews or informal meetings.
While there are absolutely times when people are not being paid fairly for comparable work — and this new bill will begin to rectify that — remember that the people who control your pay need to be able to justify it above them, and the only way to do that is by looking at your contributions.
Know what you are worth in the marketplace. In evaluating your pay, consider what else the company pays for aside from your actual take-home compensation. What do they pay toward health benefits? How much do they contribute to your 401(k)? Are there other benefits, like tuition remission or child care, that save you money? Consider, too, what your position is worth to the company and recognize that longevity has benefits until it doesn’t. You might not receive endless raises if your job gets out of a market competitive range.
Related compensation issues that shouldn’t be taboo are negotiating for money, talking to your manager about being compensated appropriately, and being aware of your worth in the marketplace. Do research and talk to recruiters to not only ensure you’re being paid fairly but to root your compensation negotiations in reality. Many companies have pay strategies that take external market competitiveness into consideration, so asking for double the market rate isn’t going to get you anywhere. Being aware of your market value will give you a better idea of whether you are being paid fairly and will help you negotiate successfully.
This is still a very sensitive area in many companies, and in the short term, we aren’t likely to see money conversations become any less taboo than they are now. So proceed with caution — or wait until 2018 to discuss any compensation issues with your colleagues. It is fair to want to get paid fairly and to advocate for exactly that.
Elaine Varelas is managing partner at Keystone Partners, a career management firm in Boston, and serves on the board of Career Partners International.
