Pay me what you owe me 🎶 🎶
Inspired by Rihanna, this week's post is all about money. Throughout our careers, we will always be in a position to negotiate for compensation, whether due to being hired or promoted, during annual reviews and cost of living assessments, or because of a changing landscape (as a result of a pay equity audit, for example). The bottom line is that one of the most important boundaries related to work is a resource boundary, and in this edition, we're talking about getting paid what you are worth.
Early in my career, I had been working at an organization for several years and made an internal transfer to a new role, which resulted in a slight pay increase. During my time in this role, an audit of all positions was performed and new pay scales were developed. I received a letter indicating that I was getting an increase (😊), but at the lowest of the new classifications (😒). However, these new scales made longevity a major factor, and according to the guidelines, I should have been in a higher classification, so I asked for my salary to be corrected and, thankfully, it was. This was an early lesson in advocating for myself at work, but it wasn't easy, and I wonder how many others if faced with the same situation would have spoken up.
Fast forward to a more recent experience where I found myself as the lowest paid employee at my level, as the only person of color at this level and despite having a longer tenure in my role. This organization completed a pay equity audit, but I was still at the lowest possible salary in the newly developed pay scales. This occurred in the context of other discrimination issues that are for another newsletter, but ultimately the failure to remedy my salary was a major factor in my decision to leave that job. Like in my early role, it would have been easy to say nothing - I had a good salary and great benefits. But knowing your worth means being comfortable asking for what you're worth. You are violating a boundary for yourself when you don’t speak up about pay inequity, or when you agree to take on work, perform a task, or pick up a shift (as just a few examples) and are not compensated appropriately.
What holds us back from asking for more money or other benefits? While we each will have our own reasons, one common reason is that we feel we are pushing our employer's boundaries by asking. We may also feel a pressure to perform and conform, thinking about other potential benefits (a future reference or a promotion). Also, frankly, a lot of us just don't know how to ask. All of these reasons were identified in an October 2023 survey by B2B Reviews.
Addressing the Payment Elephant, findings from B2B Reviews
What boundaries are at play?
This edition is all about RESOURCE boundaries. It is important to think about all of the ways we can be compensated, which include:
Salary
Health insurance and wellness benefits
Paid time off (including sick, parental, and mental health leave)
Retirement plans
Profit sharing
Stipends (relocation, commuting, parking, work-from-home, gym, childcare)
Stock options
Professional development
Titles
Flexible schedules
You have to start with knowing what your values are around resources and how they support the vision for your life. Then you have a foundation for your negotiation.
What policies are at play?
Organizational policies are the drivers of equity or inequity. This includes policies determining pay scales and job classifications as well as performance management, especially in organizations where pay is tied to performance. Your organization may also have a policy stating that any changes in pay or other compensation are dependent on available budget (common in the non-profit space in particular).
Importantly, there are several laws that impact pay equity:
Minimum wage laws. There are 7 states that have no minimum wage law or have a minimum wage below the federal minimum. On the plus side, the effective minimum wage has increased in 30 states and DC since 2014, and 58 localities have established a minimum wage above their state's minimum wage. At the same time, 27 states prohibit local governments from raising the minimum wage higher than the state minimum wage. Learn more via the Economic Policy Institute's Minimum Wage Tracker.
Pre-emption laws. In addition to prohibitions on minimum wage, states have also restricted fair scheduling, paid leave, and the gig economy.
Non-discrimination laws. Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA) prohibit compensation discrimination on the basis of race, color, religion, sex, national origin, age, or disability.
Equal pay laws. The Equal Pay Act of 1963 requires that men and women receive equal pay for substantially equal work based on job content (not title). There is also the Lilly Ledbetter Fair Pay Act of 2009, which strengthened worker protections against wage discrimination.
Pay transparency laws. There are 8 states with pay transparency laws in effect, and more states considering similar legislation. These laws may require salary ranges to be disclosed in job postings or internally for transfers and promotions, they may prohibit an employer from using an applicant's salary history as the basis for compensation, or they may expressly allow employees to discuss their pay without consequence.
Pay Transparency Laws by State, GovDocs, available at: https://www.govdocs.com/pay-transparency-laws/
Who is most impacted?
Have you heard of Women's Equal Pay Day? That's the day into the current calendar year that a woman must work to earn the same as a man during the previous year. For all women in the U.S., that date was March 12, 2024. However, the gaps are more significant for women of color. Equal Pay Day is July 9th for Black women, August 7th for moms, October 3rd for Latinas, and November 21st for Native women.
Low-wage workers are also impacted, but let's be real…if you need a job and you are a low-wage worker, you probably don't feel empowered to negotiate. I can relate. I once worked at Target and made $7.25 an hour. However, it was important for me to ask for other types of compensation, including communicating my schedule preferences and asking for time off when needed for exams or assignments (I was in school at the time).
It's also important to recognize that people of color are overrepresented among low-wage workers due to intentional policy choices in the past that contribute to occupational segregation and gender and racial discrimination today, such as exemptions under the Fair Labor Standards Act and the National Labor Relations Act.
The gender wage gap by race and ethnicity, Pew Research Center, available at: https://www.pewresearch.org/social-trends/2023/03/01/the-enduring-grip-of-the-gender-pay-gap/
What can you do with this information?
Here are a few quick tips:
Ask your colleagues and peers what they make or otherwise research compensation for positions similar to yours. You can also have open conversations within your friend group about money. Even if it feels uncomfortable at first, normalize talking about your finances. It can help lift everyone in your friend group, and can also be a safe space to practice making your request.
Maintain a list of your accomplishments. Know your job description and be able to demonstrate when and how you excel or go above and beyond what is required of your role.
Know the laws in your state, especially around salary transparency, and review your organization's policies related to any of the forms of compensation identified above. There are often many benefits offered that employees may not take advantage of. Don't leave anything on the table!
I didn't grow up with money and, until this year, my entire career has been in public service. It has been important on my career path to pursue connections and opportunities that expand my financial narrative. I am reminded in writing this of a study in 2022 that found that cross-class friendships, also known as economic connectedness, significantly increase how much you earn in adulthood. Make an intentional effort to surround yourself with people who are where you want to be and to explore your relationship with money and your own financial narratives.
I couldn't write this without making note of one of my favorite reads from last year: Financial Feminist by Tori Dunlap. Some key questions that we can all ask ourselves are: What narratives about money did we hear from our family while growing up? What narratives about money exist in our current friend circles? What are our financial goals and how are they aligned with our values? An important part of asking for what you want is knowing your why, and the most important why is that you are worthy.
____________________________________
Let's connect! Learn more about training and technical assistance on workplace wellbeing and other topics.