Salary Dilemma: Should HR Address When a Worker Earns More Than Their Supervisor?

Hi everyone,

I just want to ask, if one worker's salary was increased by the management more than his supervisor, should HR speak about that with the management? What do you think? Please share your comments.

Thank you.

1. Why has management taken such a decision?
2. Does it mean that management does not know the salary of the supervisor?
3. Is the salary revision done without the knowledge of HR?
4. Is it possible that management does not want the services of the supervisor?

Supervisor and worker must be in two different grades. What are the rules for the grant of an increment? It is HR only who takes up for the grant of an increment, etc. What reason has been quoted for the grant of an increment of this nature? This needs to be looked into as it could upset the relationship between the worker and supervisor and among workers themselves.

It seems your establishment does not have proper salary bands, which often leads to this anomalous situation. The queries asked by the seniors will help you locate it. Frame a grade-wise salary structure to prevent such overlapping in the future.

B. Saikumar
HR & Labour Law Advisor
Navi Mumbai

Who has granted the increment? How is it that it was done without HR knowing about it? As such, some highly skilled workers may be paid higher than the supervisors. We need to know the complete details of the matter. Questions with vague background rarely get you anything other than academic answers.

I also agree with Mr. Saswata Banerjee. In a manufacturing company, it happens. In our company, we also pay a higher amount to highly skilled workmen. It depends on their skill set for a particular job, years of experience, and the market rate. For example, if you consider the case of a boiler welder, a boiler certified welder gets Rs 40,000 to 50,000 per month, but a supervisor may not receive that much with the same years of experience.

Dear colleague, as stated by experienced professionals, it is a reality that a worker with a certain skill set, experience, and market rates earns more than a junior supervisor. Here, the issue is the worker's salary is increased more than that of the supervisor's without HR being involved. This is not advisable as HR can bring a different point of view to people decisions, which is their forte. Bypassing HR and making such decisions goes against the grain of the organization and is bound to cause ripples.

Regards, Vinayak Nagarkar HR Consultant

Understanding Salary Distortion

This situation, where the salary of a staff member is higher than that of their supervisor, is what we call "salary distortion" in compensation.

Salary distortion can occur when a company lacks a valid salary structure based on appropriate job grades and job classes. In some countries, like India, this issue is particularly problematic because there is confusion between the terms "salary component" and "salary structure."

Preventing Salary Distortion

To avoid salary distortion, companies must adopt a valid salary structure based on job classification and job grading. A well-defined salary structure with valid job classes and job grades will determine the rate range for each job grade and class. Consequently, supervisors will always have higher job grades and, therefore, higher salary rates. Non-supervisors will have their respective rate ranges, but these will always be lower than those of supervisors.

Please remember that your company must always have a salary structure compliant with the first compensation principle of internal equity—i.e., larger roles must be compensated more than smaller roles. Therefore, paying a staff member a higher salary than their supervisor violates this principle and should be corrected.

Best regards.

Dear Friend,

It is a bad decision. This type of decision will demoralize the working groups. There should be hierarchy in payment as per the position. You may keep even a one rupee difference. Why your management took such a decision without the consent of HR, they know only. It is a biased decision.

If a subordinate deserves a higher salary than his supervisor because he is equipped with better skills, then promote him to a higher grade to avoid anomalies. Failing to do so may lead to other consequences, such as the subordinate not obeying the supervisor's instructions, disrupting team spirit, or, as Prabhat said, demoralizing supervisors who shoulder more responsibility for less salary. That's why grading of posts with corresponding salary bands can avoid this anomaly.

Regards, Saikumar HR & Labour Relations Advisor Navi Mumbai

At the starting point of approval received, it has to be discussed and informed that if you are going to receive a salary equal to or higher than that of a supervisor with the same experience in the company, you will need to request a change in designation as well. If this is not done, then the supervisor's salary must be adjusted as soon as possible to avoid matching the employee's salary. If this change has recently been implemented, make the necessary adjustments promptly, before it is brought to attention by a union or others.

Salary Increase and Management Decisions

The Queriest (Superior) mentions that a worker's (who is his subordinate) salary has been increased by management to a level higher than his own. Generally, a subordinate is someone who works under a superior and reports to them for all work-related matters. In such situations, management usually considers salary increases or promotions based on the recommendation of the superior, who is typically the section or department head, to maintain work discipline in the concerned department.

As rightly pointed out by some members, overlooking or disregarding the superior can demoralize them and affect their control and responsibility in accomplishing departmental work. Let us hope the Queriest will reveal all facts for the information of members and to provide proper comments.

[Email Removed For Privacy Reasons]

Dear All,

Your apprehensions and misgivings about how a worker can be given a higher salary than their supervisor or boss are outright illogical. Regardless of what the statutes and HR manuals may dictate regarding who receives what in terms of salary and pay grades, we must not overlook the possibility that the worker's performance, both in terms of their roles and responsibilities, may have surpassed that of the supervisor.

Performance and potential

Performance and output, coupled with a deep understanding of the mission statement and vision, could potentially position the worker to become a CEO one day. It is essential that we shift our management language to view everyone as associates, and in the appropriate context, as workers.

Thank you.

It happens very often, and there are no restrictions to avert this nature. For the sake of understanding the underlying fact, the President of India is the highest employee of the Indian government, who, in fact, draws a salary lesser than many of his colleagues in the ministries, defense, and other sectors. Similarly, the salary of MLAs and MPs. These differences cannot be considered anomalous on the plea that the service conditions are different. Except for government rules, there is nothing to prevent a subordinate or junior from drawing more salary than his/her superiors. But in no way would the supervisor be considered inferior to his/her subordinate despite his/her higher salary. The hierarchy does not get vitiated by this fact.