Discussing money with your boss is one of the more dreaded aspects of the modern workplace. We’re often taught that it’s inappropriate to talk about money when we’re young, which makes it uncomfortable to have the open conversations necessary to increase your salary!
Remember: employment is a contract. You agree to complete certain tasks in exchange for a paycheck. Every time your employer asks you to take on another responsibility, they are in effect altering the terms of that contract. So it’s completely reasonable for you to start a conversation about altering those terms in a way that benefits you.
Here are six signs that you may be underpaid at work, and what you can do to fix it.
6 Signs You May Be Underpaid
1. Your responsibilities have increased but your pay has not
Have you been asked to take on training duties for new hires, or cross-train for another department? That’s great! It means that you’ve proven yourself to be a reliable employee. But with those additional responsibilities should come additional compensation.
2. Online salary aggregates don’t line up with your pay
Websites like Payscale.com and Salary.com collect salary data across thousands of industries and markets. Plug in your job title and where you live to see an average pay range. You can then add your education level, years of experience, and number of direct reports to get a better idea of an appropriate salary.
3. Colleagues with similar experience make more money
While employers can prohibit employees from discussing their pay while at work or in front of guests and customers, it is against the law for employers to forbid employees to share their pay information on their own time.
If you learn that your colleagues in similar roles with similar experiences are making more than you, you may be underpaid.
4. Job postings for similar work in your area list higher salaries
Current job listings can be a helpful tool for assessing changes in the labor market. A sudden increase in salaries for similar job titles may show that there’s an increased need for the services you provide. And this may indicate that you should be earning a higher salary. The laws of supply and demand apply to more than goods and services—they apply to labor, too.
5. You haven’t received a raise in over a year
Many companies offer performance reviews and associated raises on an annual basis. If it’s been longer than a year since you’ve discussed your salary with your employer, the conversation is probably overdue. At the least, you could be eligible for a cost-of-living adjustment to keep your salary’s purchasing power commensurate with inflation.
6. The company is making big profits but your pay hasn’t increased
A proud email from the CEO announcing a year of record profits can make you feel good about your work. But it could also show that there’s money in the budget for the hard-working employees who made it happen.
How to Ask for What You’re Worth
If you think you’re being underpaid, the place to start is with research. When you have the numbers and facts to back up your argument for why you deserve more money, you’ll be in a stronger bargaining position.
First, make a list of all of your responsibilities. Include the tasks that were on your initial job description, as well as a separate list of the additional responsibilities that you’ve taken on. Any projects that you’ve excelled on recently should be included, as well as any recent praise for a job well done. Then, find and print any online documents that support your request, including salary data from Payscale and Salary.com and similar job postings in the area that have higher salaries.
Request a meeting with your boss where you can request your raise. Briefly explain why you think you should be earning a higher salary based on your responsibilities and performance. If they claim that your pay is appropriate for the market, you can lay out your supporting documentation regarding similar positions.
You may want to come to the meeting with a dollar value in mind, so you’ll have a benchmark for success. If your manager has to clear raises with their boss or with HR, that’s fine. Just let them know that you’ll follow up in a week or two.
If the response to your request is a “no,” ask them what you can improve to earn that increased income. Hopefully, they will be able to provide an action plan for you to follow. But if they can’t give you reasonable steps to follow, or claim that you’ve maxed out your potential salary for your position, then it may be time to take your skills elsewhere.