In honor of equal pay day, I wanted to discuss what to do if you’ve been underpaid at work. This can happen to anyone, so there’s no need to be discouraged. You can overcome this and negotiate a higher salary like you deserve, however to do so, there are a couple of things you need to do and a few things to keep in mind.
Know the facts
According to CNN, American workers can expect an average salary increase of 3% in 2018. While there are a lot of tips on how to negotiate a higher salary out there, if you’re staying within your current role or even within the same company, it’s not likely that you will be able to gain more than a 5% salary increase. In some extreme cases you might be able to swing a 10% raise if you’re taking on a much more superior role, however this isn’t the norm.
If you are looking to make a big jump in pay grade, this most often requires switching companies. If you stay within your current company, salary increases will be dictated by your current base pay, whereas you have a lot more negotiation power somewhere new. It used to be that going to a new company automatically meant that you could land a salary 10-20% higher than your previous one. While increases of that size aren’t as widespread as they used to be, switching jobs is still the most common path to the best pay raise.
Research your role and what others are being paid
It’s important to be aware of the average salary for your position based on location in order to ensure you are not being under paid or taken advantage of. A great tool for this is the Bureau of Labor Statistics where you can see average wage data based on job, state, and metropolitan area. You can also check out websites that list average salaries based on company, or databases that gather salary information based on age, job type, and location. These tools shouldn’t be used as an absolute mark of what you should make, however they are a great guide to ensure that you are being compensated correctly based on your location, experience, etc.
Note your accomplishments and be confident in the value you add
One of the biggest mistakes people often make when it comes to salary negotiations is that they don’t come in prepared with information about themselves. When you’re going in to ask for a higher salary, it’s important to have the facts laid out.
Some metrics and facts you might want to calculate (for yourself and for your negotiator):
- How many hours per week you actually work
People often get caught up in an annual salary, but it’s important to break it down by hours you actually work to see how much you’re really making. Additionally, highlighting how much you’re at the office will add to why you deserve a higher salary. You can use apps that track your time for an easy way to do this.
Also note if you’re there longer than everyone else. If you have a habit of coming in on weekends or working late at night, point this out.
- Achievements
Did you save the company money? Secure a big partnership? Lay out your achievements so you can highlight how beneficial you’ve been to the company. The more you have to point out, the stronger your case will be for a higher salary.
Show that you’ve done your homework
When you go to interview for other positions, make sure you are armed with facts and evidence to support your desired pay increase. Here’s a great way to explain your situation to an interviewer or hiring manager:
“I am aware that I am being underpaid at my current job, however I have learned x, y, and z from this experience/job, and based off of the bureau of labor statistics which show that the average pay for this position in this area is x, along with my accomplishments of a and b, I’m aiming for a salary of $”.
If you give a statement like this, you will come off as knowledgeable, confident, and motivated. Having evidence of your achievements and statistics will also make you appear researched and show interviewers that you have put effort into getting fairly compensated.
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Determining your next step and figuring out what to do if you’ve been underpaid at work can seem intimidating and overwhelming, however you do have the power to negotiate a higher salary for yourself. If you come in prepared with facts, pay averages, and personal achievements, you can highlight your value and show others why you deserve higher pay.