Reprinted from the December 15, 2006 issue of MANAGER’S LEGAL BULLETIN, a widely read employment law newsletter that communicates legal guidelines to managers through real-life dialogue and concrete examples. Click here to view a sample issue, get more information or sign up for a risk-free subscription.

Employee Mantra: Underpaid And Overworked

No matter how much employees get paid, it’s never enough. Learn the best ways to respond to employees’ salary complaints, whether they have merit or not.

ANOTHER DAY, ANOTHER PAY COMPLAINT

“I don’t believe my salary is at the level it should be for the amount of work I do and time I put in,” Nathan Latham said to his manager.

Sheila Silver thought to herself, “Not again.” He was the second employee in a week who complained about their pay.

“I took over most of Dennis’s duties after he left,” Latham continued, “and since Torrance went on maternity leave, I’ve had to do a lot of her work, as well. I think I deserve a raise.”

“The budget just won’t allow for it at this time. But that is why I’ve allowed you to be extremely flexible with your schedule,” Silver pointed out. “Believe me, I’ve noticed the extra effort you’ve put in, and I appreciate your hard work.”

MONEY MATTERS

When employees complain about pay, they will want to know how salaries are determined and how they can earn more.

• Explain the factors that contribute to salary, including: the pay ranges that are pre-set by the company; the company’s financial situation; market conditions; the effect of the employee’s performance, behavior, experience, and education.

Utilize salary surveys to show employees how their salaries compare to others with similar job descriptions, from similar-sized companies, in the same area. A good start is the Bureau of Labor Statistics (www.bls.gov). You must do your research because you can be sure that employees have.

• Explain also how employees can potentially earn more. Is there a promotion they can work toward? Are there specific duties they can take on? Is there a certification they can earn?

If you set performance goals, make sure to provide guidance and feedback along the way.

IS THE EMPLOYEE RIGHT?

If the employee’s complaint has merit, and you cannot increase his/her pay, concentrate on the positive aspects of the job. For one, describe the non-pay benefits that contribute to their compensation:

• employer-paid health benefits;
• employer contributions to retirement accounts;
• employer-provided equipment (e.g., car, laptop, cell phone); and
• vacation days, holidays, and other paid leave benefits.

Also, show them the bigger picture. Silver reminded Latham that she allowed him to work a flexible schedule. Point out the other benefits that employees receive, such as:

• training and mentoring;
• flexible hours/telecommuting;
• an informal work environment (e.g., casual dress code); and
• company events (e.g., holiday party).

Finally, keep in mind that when employees complain about salary, it’s not always about money. Often they are seeking appreciation, and equate appreciation with salary. That’s not to say that simply saying “thank you” will erase salary complaints, but it could help cut down on them.

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