Are You Getting Paid Enough? was originally published on Ivy Exec.
Professionals who stay in the same job for long periods are likely to be earning less than their job-hopping counterparts. A 2021 study found that individuals who changed jobs at least once were likely to earn more than professionals who had the same job for a long period, as well as earning as much as a 12 percent pay increase in their new roles.
Economist Lauren Thomas explains why this might be the case.
“Job hopping is one of the easiest ways to gain a significant salary increase. While staying for a long time in the same role can result in below-market pay, finding a new job usually means instantly receiving the market rate,” she said.
While changing jobs might be an effective strategy for earning more money, what if you want to stay in your current role? Here, we’ll talk about how to know if you’re getting paid what you’re owed in your current position.
☑️ Compare your current salary to those for similar roles in your field and city.
When figuring out if you’re underpaid, the first step is researching similar jobs to yours in your area. To make an accurate comparison, consider the following factors:
- Job titles that are the same or akin to yours.
- Positions that require the same number of years of experience as you have.
- Your level at the organization.
- Your education, unusual skills, and certifications.
- Your field and industry.
- The size of your company.
- Your city or region.
Next, research pay ranges that fit these parameters using tools like Salary.com.
Some states and cities have even started requiring that companies post the intended salaries they will offer in new positions. If you live in one of these places, you can see how much roles like yours intend to pay for the same work you’re doing. This way, you can be aware of the pay stagnation that long-tenured professionals usually have if they stay in a role for a long time.
☑️ If you’re worried you’re paid less than newer hires, see if you can talk to HR about their salaries.
In some cases, you might also be able to connect with HR and ask them how much new hires in similar positions to yours will earn. Some states require human resources to inform anyone who wants to know the salary range for a new job they’re posting.
You could also talk with people who already work at your company or in your field about what they’re paid. Though some professionals may worry that they are breaking the law, it is actually legal to discuss compensation with private-sector coworkers under the National Labor Relations Act.
☑️ Consider the salary you started with and your company’s financial growth – are they keeping pace with each other?
Another red flag that you’re being underpaid is that your salary hasn’t increased at the same pace your company has taken off. Let’s say you went to work at a new organization that didn’t have much to pay you at the get-go, but recently, the company has exponentially increased its profits. If that’s the case, you should be earning a salary that is equivalently keeping pace.
“f you’re armed with the fact that the firm has seen 20% growth in one year, but your salary is under par, you’ll strengthen your argument for a raise,” said workplace expert Lynn Taylor.
☑️ Have you taken on more work and responsibilities, but your pay hasn’t increased?
Another way to tell if you’re underpaid is if you’re taking on considerably more responsibilities, but your salary hasn’t been boosted accordingly. Perhaps you’ve been asked to serve as project lead more often or even have been promoted. However, maybe your pay has not increased, or at least not enough to warrant all of the new tasks you’ve been asked to perform.
“Whether you’ve taken on a larger workload when a coworker left or you were promoted, a change in responsibilities should always signal that it’s time for a raise. However, suppose you were not given extra compensation for your increased workload. In that case, it’s a sure sign that you’re underpaid…” said Business News Daily writer Stella Morrison.
If you’re not receiving bonuses or raises like your colleagues are, it’s time to figure out why not.
Are You Getting Paid What You’re Owed?
If you decide you’re not getting paid what you deserve, it’s time to start having conversations with your boss about boosting your salary. First, read our guide, “Negotiating? Say These Things to Get What You Want,” for a better sense of the steps you should take.
Then, you want to talk to your supervisor about increasing your salary, ideally after you’ve finished a significant project or during a salary review. Bring in the research you’ve done about similar jobs in your area; ideally, you can also find information about what newer hires at the organization make compared to you. It’s also a smart idea to bring in a list of your increased responsibilities and a timeline of how long your pay has been stagnant.
If you don’t earn a raise, don’t give up just yet.
“Most younger workers presume that a ‘no’ is the end of the conversation, but that’s simply not the case. It’s often unlikely your boss will give in on the first ask, so think of salary negotiations as an ongoing conversation,” said Jobvite’s chief people officer Rachel Bitte.
If you’re still not getting anywhere, it may be time to job-hop to one of the better-paying companies you discovered in your research!
