I’m a brand-new HR director, and I recently discovered that an employee earns $13K more than her director, who oversees a team of 10. The highly paid employee, Jane, signed her offer letter in 2021. The finance team explained to me that the employee’s higher pay was due to certifications and difficulty finding a qualified candidate at the market salary. Upon learning that her direct report made more than she did, the director, Heidi, naturally requested a salary increase. However, the director’s salary is already in line with other directors, and Heidi would be happy if she hadn’t noticed this error. Options to consider are: maintaining the employee’s current salary, reducing the employee’s salary, or increasing the director’s salary (although we might not have the budget for the latter). What should we do?
To read my answer, click here: Can a Manager Be Paid Less Than Her Direct Report?