After over two decades in school, every graduate wants to get out there, get a job and start
earning money.
One of the prime reasons for working is earning and it goes without saying that money is important
to everyone.
Whether it is making a living or affording luxuries, money just gives us the freedom
of choice without financial constraints and worries.
Every worker, therefore, looks forward to payday.
People are always motivated by money and the salary an employee is paid greatly influences
his performance at work.
A person earning a high salary feels motivated to do a good job because he wants to please
his employer to retain his position.
His salary brings him a feeling of security, allows him to feel accomplished and gives
him a high-status ranking that he enjoys.
This, in turn, leads to increased levels of job satisfaction and employee retention rates.
However, statistics show that about 46% of workers in the U.S. feel they are underpaid
– according to a survey carried out by the staffing firm Robert Half.
Companies are willing to pay about 15% more for new employees, but they’re only willing
to give their current employees about a 2% or 3% annual raise.
As such, the best way to get ahead for employees is to quit.
In fact, in August of 2019, a record-breaking 4,478,000 workers quit their jobs.
Amounting to roughly 3% of the total nonfarm U.S. workforce, and it is the highest quits
rate recorded by the Bureau of Labor Statistics.
It is however not surprising considering that employees who are underpaid feel hurt on a
cognitive, emotional and even physical level.
In fact, being underpaid might cause you to earn less at your future jobs as your salary
at your next role is determined based on your current earnings level
So, how would you know if you are being underpaid?
And if you are, but you still love your job and don’t want to quit, how would you ask
for a raise?
Well, practical wisdom’s got you covered.
In today’s episode, we bring you signs to know if you are being underpaid and how to
negotiate for a raise.
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.
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.
That’s it for today, don’t forget to hit the subscribe button and the bell icon for
notifications.
until next time.