5 Signs You're Not Being Paid What You're Worth
And what to do about it.
Photo: Christina Jones Photography
Make no mistake, trying to figure out how your salary stacks up against others in your field is a challenge. The unavoidable fact is: people get cagey when it comes to talking money. (Personally, I believe that being more open about these things will only help us close the pay gap, but that's an article for another day.)
If you suspect you're being underpaid, getting a free salary report from Comparably or PayScale and scouring Glassdoor is a great start. But that's all it is—a start. To figure out whether you're being underpaid, you need to pay attention to the signs. Or, as career expert, bestselling author, and former editor-in-chief of Cosmopolitan (oh, and four other magazines), Kate White says, "You need to be a mercenary for information."
Here are the top five signs you're not getting paid what you deserve.
1. You Never Negotiated Your Pay
I know this is difficult to hear because a large percentage of women don’t. But accepting this fact is the first step. "That's your first clue," says White. "It's a sign that you probably are being underpaid because often if you don't negotiate, you're leaving money on the table." Now, if you didn't negotiate, all is not lost! Make a commitment to yourself to never take a job without negotiating again.
2. You’re Doing More, But Not Being Paid More
This one might sound obvious, but employees let it slide all too often. Just recently a friend's workload was effectively doubled without a plan for a salary increase or title change. When she went to her manager to make a case for a salary bump, he threatened to simply take away her increased responsibility. Don't fall for this. If you're doing significantly more than the role you were hired to do, you deserve appropriately increased compensation. And if you can't get it at your current company, go get it elsewhere.
3. It’s Been Two or More Years Since You Got a Raise
"Here's the problem: the market rate increases faster than the rate within a company where people may be getting 3% raises," says White. "I saw it happen to people who worked for me at different times, and as the boss, you felt bad, but often the company tied your hands.”
“When the new person was coming in and was able to negotiate for a certain salary, sometimes it was better than people on the same level,” she explains. “But again, a company won't necessarily let you say, ‘Hey if I bring this person in at X, I hate the fact that this other person is only making Y.’ So if you've been at a company for awhile, you can practically bank on the fact that you are not doing as well as people coming in from the outside."
4. You Find Out the Salary of Someone in a Comparable Position
This is less a "sign" than a fact, but it's worth mentioning. Again, talking to people about salaries can be tough, but there are ways to get the information you need.
"You could ask a mentor or someone who used to work at your company and has since moved on," says White. "And maybe you could say it in a bit of a cheeky way, like 'If I told you my salary, what amount would make you think, 'Oh my God, she's an idiot?’ You're never going to get someone who left, especially in a lateral move, to tell you what their salary was. But I think if you ask in that way, sometimes people like to answer those types of questions."
"Or find people who have comparable jobs in similar companies,” suggests White. “Without asking what they make, you can say something to them like, 'Would you mind me asking you the range of X position at your company? I love my company but I'm just curious what the range is elsewhere.' I think people will often answer that as well."
However, proceed with caution.
"I've been in situations where people found out salaries by snooping around or having conversations about it in the office, but if your boss finds out it really makes you look small," says White. "So I would say that's something to avoid."
5. You Have a Gut Feeling
I have found this to be true in my own experience, and White confirms to trust your gut. If after a few months of watching and listening, you have the sneaking suspicion you're being underpaid, you probably are.
"I think a lot of times our gut feelings about things like this are absolutely accurate," says White. "It's almost as if you're picking up clues on a lot of different subliminal levels. Maybe a guy on your same level invited people from the office over for drinks and you saw his apartment and realized, 'Wow, that's pretty nice.' Or you notice the vacations he takes. And sure, maybe he's got a trust fund. But all those little things that happen—the way your boss might be evasive, the spending habits of people on your level—all those things end up being almost imperceptible clues that on some subliminal level make your stomach twist a little bit. And you just sort of know.”
"It could be from things people inadvertently say, but the point is that it's not just one thing—it's a combination of those various, vague little things, and what they add up to that speak to you on a subliminal level,” says White. “And a lot of what they say about intuition is connecting the dots and I think you should connect the dots in this case and listen to your gut."
For more advice from Kate White on negotiating and more, pick up a copy of her tell-all career bible, “I Shouldn't Be Telling You This: How to Ask for the Money, Snag the Promotion, and Create the Career You Deserve.”
Written by Kelsey Manning for Levo.
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This story was originally published on April 19, 2017, and has since been updated.
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3 Major Salary Negotiation Mistakes to Avoid (and What to Do Instead)
Read this first before making your move.
Photo: Smith House Photo
Negotiating, much like networking, is something we need to know how to do, yet it’s not a skill we are ever taught in school. But unlike networking, making a big mistake during a salary negotiation won’t just cost you a relationship, it may result in thousands of dollars being left on the table. So what exactly do you need to know when it comes to making the big ask? Here are the top three things to avoid doing in your next negotiation.
1. Getting Defensive
Let’s say you have taken on more responsibilities and put in way more overtime than your peers this past year. However, during your performance review, your boss informs you that you will only be getting the standard 3% raise due to budget constraints.
In the heat of the moment, your heart rate will naturally jump through the roof in frustration.
What to do instead:
Instead of snapping back with how unfair this is, take a nice deep breath and allow for silence. Slowing the conversation down rather than jumping into a response will create space for you to be thoughtful in your answer rather than reactive.
2. Giving In Too Quickly
Now that you’ve given yourself a moment to breathe, you can start to prepare your response. While it’s natural to worry about what will happen if you ask for more, don’t let the fear of rejection keep you from getting what you deserve.
I’m here to tell you that negotiation is a normal and expected part of working. While your boss may secretly be hoping you don’t push back, they won’t become offended when you do (and if they do, it may be an important red flag to take note of).
What to do instead:
Instead of quickly giving in, restate your value and get their buy-in. For example, “I understand that constraints in the budget must be difficult. However, the amount of hours and effort I have been putting in for the company goes well beyond the standard expectations and performance, wouldn’t you say?”
3. Not Aiming High Enough
Lastly, when discussing pay, it’s natural to worry that if you go too high you will either offend the other party, lose the position, or come across as greedy.
However, you shouldn’t lower your expectations in order to come across as more agreeable. By starting with a “safer” sounding number you are doing the work for them, and negotiating against yourself before the conversation has even begun.
What to do instead:
Focus on the facts and then aim high.
Do your research and get clear on a salary range that is both fair and reasonable. Next, instead of lowering your standards in order to come across as more agreeable, start at the top of the range.
For the example above, if a 3 to 8% raise is reasonable, don’t lower your expectations to a safer sounding 5%. Instead, anchor high and say, “I was really hoping that given the results I’ve produced in the past year, that I would get at least an 8 percent increase. Do you think that’s something we could work toward?”
Interestingly enough, by anchoring higher, you actually give your boss the psychological feeling that they just got a “deal.” Let them feel the sweet pleasure of a deal, while you allow yourself the sweet reward of a higher paycheck!
So, in conclusion…
Negotiating doesn’t have to be scary or hard. No one will advocate for you in the same way you can advocate for yourself. You are in control of your financial well-being, and you know the value that you create. Now, share it with the world! And most importantly, share it with your boss when you ask for that next raise. This awkward and uncomfortable situation will only last a few minutes, and it may result in thousands of more dollars in your bank account.
“You shouldn’t lower your expectations in order to come across as more agreeable.”
—Kathlyn Hart, Financial Empowerment Coach
About the author: Kathlyn Hart is a financial empowerment coach and a motivational speaker who supports ambitious women earn more. Her salary negotiation boot camp “Be Brave Get Paid,” which teaches women how to confidently own their worth and ask for more, has helped women increase their income by an average of $15,000. In addition, she is the host of The Kathlyn Hart Show, where she interviews entrepreneurial women about their journey from dreaming to doing.
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This post was originally published on March 26, 2019, and has since been updated.
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Can You Afford to Take an Entry-Level Salary?
But seriously, how low should you go?
Photo: Polina Zimmerman for Pexels
When it’s your first job offer, salary negotiation might not be the first thing on your mind—and you’re not alone. In fact, just 38% of recent college graduates negotiate with their employer upon receiving a job offer, despite the fact that three-quarters of employers saying they typically have room to increase their first salary offer by 5 to 10%, according to a study by the personal finance site NerdWallet.
Of course, when it comes to negotiating salary, there is no one right solution for everyone, and in this case, the answer depends on which of two major career groups you fall into—people starting out at the bottom and working their way up in their career and people starting at a higher level or specialized position and working up from there. Regardless of where you start, determining your entry-level salary requirements is a must!
Scroll on to find out if you can afford to take an entry-level salary and what that number should mean to you.
People Starting at the Bottom and Working Their Way Up in Their Careers
In many industries, you’ll find yourself starting at the very bottom working your way up the ladder of authority. Such industries include marketing, design, and some forms of IT (among many others). In these industries, people often start as an intern, assistant, or in admin which are known for lower pay grades.
If you are starting out with a low authority or unspecialized job, your first salary isn’t very important because you will most likely move on (and up) from there, however, you do need to see how low you can go to still be able to live within your means. Salary negotiation here means figuring out what you need to survive while you find your way.
Determining How Low of a Salary You Can Afford to Take at Your First Job
Map Out How Much Money You Spend: If you’re new at creating a budget, there are a lot of great apps such as Mint that let you input your information so you can see your total spending. This app will also give you tips and notifications to make sure you’re on top of your finances.
Determine How Much You Want to Save: Once you’ve determined how much you spend, you can then determine how much you want to save. Mint can help you do that, or you can always set up an appointment with a financial advisor at your bank. Consultations and advice are usually free of charge, so this is a great option if you want to speak with someone face to face when discussing your finances.
Determine What the Average Salary Is for Your Job and Region: It is important to be aware of the average salary for your position based on location in order to ensure you are not being underpaid 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. While your first salary may not be very important in determining your salary throughout your career, it is important to make sure you are being fairly compensated for your time and effort.
Consider All of the Numbers: Once you’ve done the three steps above, you can now consider all of the numbers to determine the realistic lowest salary you can accept. While experience is important, the bottom line is that you need to be able to pay your bills. If you need to cut back here and there, (i.e. take public transportation instead of Uber, or start packing your lunches) so be it, but you must be able to afford necessities such as food, housing, and medical expenses with a little extra to spare in case of emergency.
The most important aspect of your first job is to gain necessary industry experience (and "get your foot in the door), but make sure you accept a salary that is realistic for you—one that you can survive on. Companies are often open to negotiation, so don’t feel pressure to take the first number offered to you. No one started out as a marketing exec or magazine editor without doing a lot of grunt work prior to it, so no one will expect you to be the highest-paid person in the company when you’re first starting out.
“No one started out as a marketing exec or magazine editor without doing a lot of grunt work.”
People Starting Out With Specialized Skills and/or Training
On the opposite end of the spectrum, there are a lot of people who go into a specialized career, or one that requires extra schooling, (i.e. the medical field, engineering, coding/programming, etc.). People with postgraduate degrees often start out with a relatively high level of authority, meaning that you couldn’t just jump into the position and learn as you go. You need to know what you’re doing and have specialized training or education in order to be in that role.
For these kinds of jobs, your first salary does matter. The reason behind this is that you are coming in at a higher level than other people, therefore you have less room to grow. Think of it this way: If you start out as an administrative assistant but work your way up to an executive or CEO, you’ve basically gone from zero to one hundred. However, if you start off as a doctor, engineer, or manager, you really can only become more experienced in your role and be given more authority, so instead of going from zero to one hundred in your career, you’re starting off at sixty-five or seventy and moving up to one hundred.
Because there is less growth in specialized careers, your first salary sets the tone for all the jobs to come. Companies often ask what your previous salary is so that they can give you a proportional salary increase, and sometimes save themselves a little bit of money. In a specialized career, your first salary does matter, but if you do find yourself underpaid and overachieving, there is a way to remedy the situation. It all comes down to knowledge and confidence.
How to Negotiate Salary If You’ve Been Underpaid
This actually goes for both specialized and unspecialized positions: let’s say you find yourself severely underpaid based on statistics and your accomplishments. When you go to interview for other positions, make sure you are armed with facts and evidence to support your desired pay increase.
A great way to explain your situation to an interviewer is as follows:
“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 on information posted by The Bureau of Labor Statistics, the average pay for this position in this area is x. Due to my accomplishments of a and b, I’m aiming for a salary of $x.”
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.
The Salary Requirements Checklist
If you’re sitting there wondering, “How important is my first salary?,” think about the many different factors that go into it. Make a checklist and answer the following questions:
Is your position specialized/did you need special training to qualify for the position?
If you’re not in a specialized position, is there room for growth in your career?
How much money do you need to make to pay off your current expenses?
How much money do you want to be able to save each month/year?
How much money does the average person in your job/region make? (consult the Bureau of Labor Statistics)
Are you willing to take a lower salary (that’s still realistic) to take a job that you love or one that will provide you a lot of experience?
And, if so, are there areas that you can cut back on your spending in order to accommodate for this?
If you’re already past the point of a low first salary, do your research, itemize your accomplishments, and show people why you deserve the higher pay!
The original version of this article appeared on Career Contessa, written by Michele Lando.
This post was originally published on September 18, 2016, and has since been updated.