Back

$$ for a new hire on my team

I am a mid-level manager at a tech company with 8 directs (all ICs). I am also responsible for program management of some internal systems.

I recently hired a new IC for my team. He will take on some of the program management work that I have been doing/owned for the last 3 years. I was super excited about this hire until I found out that his offer $$ is significantly more than I make -- to take on a job I've been doing in addition to my management role. (All offers at my company are handled by a compensation team; hiring managers have little to no say in the process other than defining the role and level)

How should I handle this?

Since I’m typing on a phone, I’m keeping it short 🙂1. Process, then find your mental balance (ie remove your emotions from the situation as to not inadvertently work against your goal: be compensated more)2. You mentioned that a compensation team produces the salary offers; this means it’s not personal, they don’t know what you’ve been doing the last 3 years (your manager would) but they do clearly value the work you’ve been doing in concept3. Ask your manager about the process to have your salary reviewed by the compensation team to ensure you’re being paid fairly/competitively as you’ve recently become aware that you might be underpaid for your current role and the contributions you’ve made to the company up through todayBe strategic but firm. Don’t make it sound like you’re going to quit if you don’t get a raise but be firm that you have knowledge that your work product is worth more. If asked about your expected range of increase, use the difference of the new hire’s salary from yours as the minimum ask. Then add another $10k (or whatever you feel is appropriate) on to give a max ask. Some companies will give current employees slightly less than they ask for to show cooperation, which is why I suggest your low end be on target with what you really want.
Hi there, unfortunately it's incredibly common that compensation grows the most when leaping from one company to another. The "easiest" way to be paid what you deserve is to land a competing offer and either 1) take the offer or 2) talk to your manager about the offer and how you prefer to stay but there's this really tempting offer and could they match it to keep you (obviously not exactly what you say but the gist). Comp team will likely only push those levers that hard to bring your salary up to where it needs to go when there's an event of that nature. Best of luck!
Update on this situation: I found that I was paid at least 25% less than my male counterparts. I ended up leaving the company.