While discussing salaries with peers and coworkers has remained a practice in the Corporate environment, there are many companies today who are strictly discouraging employees to share relevant details with coworkers. However, your peer group might as well extend beyond your immediate coworkers to your friends and acquaintances of similar age group, who might not belong to the same field of work as you are. You might as well think that there is no harm in disclosing or else exchanging salary details with people of your age so as to gather a general idea of how much your pay package should ideally be. However, there are several other consequences that should be kept in view while salaries are being discussed with peer groups. Some of them have been discussed below:
Disappointment: As already mentioned above, discussion on salary details among peers has often been viewed as one of the effective ways of ascertaining your worth as an employee, but it might have seriously negative implications as well. It might lead to increased job dissatisfaction if you come to know that your peers end up pocketing better salaries than you at the end of each month despite being in the same age group and having similar experience. However, please remember that there are several other factors influencing your pay package apart from experience. Your academic qualification, field of job, company policies- all play a crucial role in determining your pay packet. Most of the individuals who start off discussing salaries with peers with a view to motivate themselves on earning better mostly find themselves getting unknowingly trapped in a web of negative feelings if they find that they are among the lowest paid in their group. The determination to work hard within the concern and produce better results, therefore, are seriously harmed, thereby ruining your chances of earning performance linked incentives.
It doesn’t help you in negotiating salaries: It is fruitless to harp on the fact that your peers pocket more impressive salaries than you do, as you can’t really use the necessary information as a means of boosting your negotiation with an organization. As already mentioned above, your experience and age as an employee will not be the only factors determining you pay package at a concern. You can’t really put forward a point like- “My friend at another company gets more than what you are offering me…” Only a systematic research and the ability to sell yourself can boost your negotiation. Whether you are looking for a pay hike at your old company or else a for a job at a new one, you should be consulting the average pay packet of people hailing from similar background (job category, experience, industry, academic qualification etc) rather than seeking information about salaries pocketed by every other individual in your peer group. It is meaningless to discuss salaries with individuals whose careers do not match with yours. Adopt a more systematic approach by consulting websites that offer information about salaries earned in relevant jobs. Try and step up your own skills to earn better salaries as well.
Impacts the Power of Judgment in a Negative Manner: As already mentioned above, the knowledge of you being among the lower earners in your peer group can have an adverse effect on your power of judgment. It might lead you to make hasty career decisions that may range from a bad job switch to a showdown at workplace. Therefore, make sure that good sense prevails and you are not overwhelmed by mixed opinions. If you are bracing up for a potential negotiation on pay hike make sure that you have chosen the ideal time to do so. For instance, you can do it when you have aced a project recently or else when your company has bagged a lucrative assignment and not when situations are adverse.