A recent study published by the American Psychological Association reveals that people prefer to collaborate with higher-paid colleagues but tend to hire subordinates with a lower pay history than their own. The research, featured in the journal American Psychologist, examines how increasing pay transparency may influence workers' behavior.

Kevin Kniffin, PhD, an assistant professor at Cornell University and co-author of the study, explained his interest in salary differences and their impact on workplace dynamics. "I’ve long been interested in the ways in which slight—and not-so-slight—differences in salaries can generate strong reactions from people," said Kniffin. He emphasized the importance of understanding how pay differences affect collaboration as organizations move towards greater pay transparency.

Contrary to some hypotheses suggesting that pay transparency could lead to resentment and avoidance of higher-paid colleagues, Kniffin and his colleague Angus Hildreth, PhD, proposed that employees might view higher salaries as indicators of competence.

The researchers conducted three experiments to explore this hypothesis. In the first experiment involving 171 economics PhD students, nearly two-thirds (65%) chose to work with a higher-paid partner on a project. A second experiment with 171 online participants showed that initially 73% preferred higher-paid colleagues; however, this dropped to 60% when participants were informed that both colleagues had similar qualifications.

In a third experiment with 375 online participants asked to choose between real-life colleagues they had worked with before or not, 58% opted for the higher-paid colleague when making project partner decisions.

"People seem to assume that higher pay is merited and reflects greater competence," Hildreth noted. "They seem to assume that collaborating with someone with higher pay will be beneficial."

A fourth experiment examined hiring preferences among 138 online participants with hiring experience. When choosing between candidates with identical qualifications but different salary histories, 71% preferred candidates with lower past salaries than their own.

Kniffin highlighted the implications for workplaces: "While companies may anticipate pay transparency would impede employees’ willingness to work with higher-paid colleagues, we find evidence that salary disparities can actually function as a magnet for collaboration."

Hildreth suggested future research could investigate whether collaborating with higher-paid peers indeed benefits employees and if these peers share their skills as assumed.

The article titled “Partnering Up (and Down): Examining When and Why People Prefer Collaborating with Higher-Paid Peers (and Lower-Paid Subordinates)” by Kevin M. Kniffin and John Angus D. Hildreth was published online on September 23rd in American Psychologist.