Signs you are underpaid.
1. Research tells you so.
There are numerous sources online and salary calculators that show you what others are paid in your position in your place. If you looked up salaries paid for your position in different companies and you find there is a stark difference between what you are paid and what others are earning then it is a sure sign that you are being underpaid.
2. A similar job listing in your company offers higher pay.
If there is a new job listing or other posts in your company that has the same job description as yours but pays higher, then there is a high chance you are being underpaid. You could check the company website and job notices to get an idea of how much the new employees are paid.
3. You earn less than your colleagues.
Although the topic of employees’ salaries is well guarded and it may be difficult to find out what your colleagues earn, networking or associating with others in the same field of specialization allows you to get an idea of how they are paid. A friend may even tip you off and if you find that you are paid less than your colleagues who have the same experience and education with almost similar responsibilities then it is a sign you are being underpaid in the company.
4. Your responsibilities have increased but your salary has not changed.
Most probably due to your competency, the more you stay at your job the more likely you are to find your workload increase. If you find that your title has increased but it has not reflected on your paycheck or if your boss is dumping more duties on you, extra work and responsibilities without any compensation or any discussion about it then you are most probably underpaid.
5. Your boss is evasive when you want to discuss your career path.
As an employee, you must have your own career goals and ideas that you want to work towards in order to grow. Having access to someone with company experience, insight and information can also help you get ahead. For you, your boss is just that person but if you find that your boss is evasive when you try bringing it up then you are most likely underpaid since such discussions will definitely lead to salary talks.
6. Everyone but you is getting a bonus.
If there are talks around you about annual bonuses or even performance bonuses but you have never received one then you should probably look into it. It is especially so if you feel that you are deserving of it.
7. You have been at the same company for years.
If you have been staying in the same company for years despite the little raises here and there you are most likely underpaid because most companies often pay the newer employees higher.
8. Your area of speciality is not in high demand.
Some jobs are in higher demand than others so you have to factor in where you stand in the job market to see if you are paid fairly or you are deserving of a pay rise.
9. You have a complacent attitude.
If you have fallen into a complacent attitude where you are happy just where you are then there is a probability that you are being underpaid. This is because employers can sense an employee’s attitude and they would not go out of their way to make you happier if you are already satisfied.
10. You haven’t had a performance review in over a year
Companies normally have quarterly, semi – annual and annual performance reviews. If your performance review came and passed or you did not get any raise when you feel that you deserve it then there is a chance that you are being underpaid. How to negotiate for a raise. After finding out that you might be underpaid instead of stewing up in the frustration of being undervalued the best next step is to consider negotiating for a pay raise. Even if your boss understands the value you bring to the company he or she would not actively be proactive in providing you with your so desired salary raise. Therefore it is imperative that you take the initiative to talk about it with your manager. Here are a few steps you can follow when negotiating for a pay raise.
Here are a few steps you can follow when negotiating for a pay raise.
1. Research your salary range.
It is important to know the salary range of the position you are working in the company. You cannot put forth a figure that is absurdly high. There are various pay scale websites online that can give you the average pay in the market for your position. Rather than a single figure, it is better quoting an expected range as it helps you negotiate an acceptable figure easily. Having a realistic range in mind is the first step before you start your pay raise negotiation.2. Know your worth.
So as not to be shunned away with the typical reason for budget, you need to understand your worth which will be your leverage in the negotiation. You need to prepare a list of your accomplishments at work to show your value and justify your claim. This could be performance reviews, positive feedback from clients/management or additional responsibilities you have taken on.
3. Consider alternative benefits you would accept.
While your boss may be considerate it’s not out of the expectation if your proposition does not go through. You should, therefore, consider other benefits that you could accept instead of money such as paid time off, a more flexible schedule or even stock options.
4. Prepare yourself using a mock negotiation.
Negotiation with your boss may be awkward so it helps to practice with a friend. Find someone to listen to you as you practice your pitch – at least once before the actual negotiation. This helps you to remain calm and confident during the actual day when presenting your proposal to your boss.
5. Find the right time.
When scheduling a meeting, find the best timing for the meeting. Asking for a raise when the company just carried out some layoffs or when your manager is not in the best condition is the worst choice you could make. When the company is doing well, when you’ve just been commended for a good performance or when your boss is in a good mood these are all good opportunity for you to raise the issue of pay raise.
6. Meeting with your boss.
After preparing yourself and picking a good timing comes the actual discussion with your boss. During the negotiation it is important to make note of the following: Be confident: Confidence is a fundamental key to success in a negotiation. While you are making your proposition you will need to convince your boss that you deserve the raise. Being confident enables you to argue out your points as it is inevitable that your employer will try to make a lower offer and haggle with you over the amount. Start on a positive note: when starting the conversation, kick it off on a positive note. Stating how you enjoy your work and the responsibilities you handle. Don’t be aggressive: while negotiating with your boss, be mindful of your tone. After all, he is your employer. Be diplomatic and assertive not aggressive. Don’t bring your personal affairs: while negotiating, don’t bring your sob story trying to invoke sympathy. Stick to the actual value you bring to the company and the actual facts that prove your worth. Be patient: once you have stated your offer, your manager may need a few days to consider your proposal. Be patient. Or, you may have been given a figure or offer you did not expect. Therefore, if you need time to consider it, you should ask for some time; maybe a day or two to brood over it. Be gracious: to avoid coming out as ungrateful or demanding you need to be gracious. No matter the outcome, be understanding and thankful. After the negotiations, if it is successful your responsibilities will increase and your boss would want to see you deliver. It is therefore up to you to show that the extra money the company is paying you is worth it.
It’s important to get a letter or written confirmation such as an email to outline your responsibilities as well as the agreed amount of pay. You may also find that your boss respects you more. This is because of the confidence you demonstrated. Successful salary negotiations show your superiors that you plan to stick around which is a good sign for them. Even after a successful negotiation you should always ensure that you are paid fairly so long as you stay in the company. Following what we have discussed, I am sure you would be able to avoid being under paid and even get better treatment in your work place. If you are yet to negotiate a salary, good luck and if you have, do tell us how you went about it and what happened afterwards in the comments section below.
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