Ah, that time of the year when workplaces buzz with whispers about pay and bonuses. Even though these decisions are supposed to stay hush-hush, somehow, the grapevine always manages to spill the tea—leading to the not-so-pleasant realization that your colleague might be earning more than you.

Here’s what to consider before you start drafting that resignation letter:

Experience Matters

One of the top reasons for pay differences is experience. You might only know a bit about your co-worker’s job history, but their full skill set and background could be way more impressive than you think. Experience plays a huge role in salary decisions, so even if your raises are on point, they might still be ahead.

Negotiation is a Superpower

Some people are just better at negotiating. It’s like that old saying, “ask and you shall receive.” Negotiation skills are crucial, not just when you’re signing your contract but also during your annual reviews. Forget about stereotypes—whether you’re male, female, or otherwise, it’s all about asking confidently.

Degrees Do Matter

Research shows that having a degree can lead to higher salaries and better job prospects. So, if your co-worker has a degree and you don’t, this could be a factor in their higher pay.

Office Friendships

We all know that one person who’s best buds with the boss. While it’s not the most professional behavior, these friendships can lead to better performance reviews, higher bonuses, and more opportunities. You might not control these dynamics, but maintaining a good rapport with your boss can help.

The Overachievers

Every office has someone who’s willing to do anything to impress the boss. If you’re not that person, it could affect your pay. Performance indicators often favor those who go above and beyond.

Sometimes, It’s Not You

If you’re consistently missing out on raises and bonuses, it might be a sign that your boss wants you to leave. It’s a harsh reality, but sometimes, employers hold back rewards to encourage you to move on.

A Tough Pill to Swallow

Lastly, and this one’s hard to hear—maybe your co-worker is just better at the job. Self-awareness is key, and sometimes, the pay gap is because they perform better, come in a bit earlier, or stay a bit later.

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