Say, for example, you and Steve have the same job description and Steve tells you that he makes $40k more than you. You naturally feel screwed, so you go talk t

Say, for example, you and Steve have the same job description and Steve tells you that he makes $40k more than you. You naturally feel screwed, so you go talk to the boss about it. Now, one of two things might happen. It might turn out that you're actually as good as Steve, and just weren't as good at negotiating. That's the best case, and maybe you'll get yourself the raise that everybody always talks about when this topic comes up. But more likely, you're just not as good at your job as Steve. If Steve is a better engineer than I am, then I'll be more likely to know that than most managers. Now, software is structurally cooperative so I am just not going to raise a stink if a superior engineer makes $40k more, because he's worth it. If he's genuinely better than I am, then my attitude is, "damn right he deserves to be better paid; look at how much I learn from him every day!" I'm not one to make waves over differences in salary. I have too much other shit that I automatically raise hell over (unfairness in project allocation, unfair review policies). I tend to let salary flamewars go. Gotta pick your battles. And now your boss has no choice but tell you so directly. So now you feel even worse, your boss is uncomfortable, and Steve is all self-conscious. If he's a good boss, in that circumstance, he'd tell me what I need to do to be in Steve's position in 2 years. If he's going to pay Steve $40k more because he has more immediate-term value, then fine. If I want the boss to invest in my career so I can be a Steve in two years, and he's not willing to do that, then we have to break.