How to negotiate salary when you are underpaid
Do Your Research
When you're negotiating for a higher
salary, doing your research is essential. You need to know the following:
- The salary range for the position and the market.
- The company's financial situation. You can find this on
their website or Google it. How are they performing compared to other
companies in their industry? Are they in danger of going under? What are
their growth goals? Do they have any new projects coming up that might
affect their budget?
- The company's culture (and reputation). This can be
found through an interview process or by talking with current employees.
Does it seem like everyone gets along well at work? Are there strict dress
codes that make it difficult for people to express themselves through
clothing choices and personal style choices like piercings or tattoos? If
so, this could be a red flag about how much freedom you'd have as an
employee there—which may not bode well for negotiating later!
Call It Out
If your boss doesn't respect you,
it's time to call them out. You should be asking for a raise because you
deserve one, and not because of any other reason. If your boss is making
excuses about why you don't deserve a raise, don't let them get away with it!
Tell them exactly how they are wronging you:
- Gender bias: "You're paying me less than my male
colleagues because I'm a woman."
- Lack of fairness: "I work twice as hard as [male coworker] does but still make less money."
- Lack of respect: "Your refusal to pay me fairly
shows that our relationship is not one based on mutual respect."
- Lack of appreciation: “If I wasn’t doing such good
work, would we even be having this conversation?”
Address Gender Bias
In addition to race and ethnicity,
gender bias is yet another factor that can make salary negotiations difficult.
A recent study conducted by the University of California found that women earn
approximately 20% less than men in the United States. This disparity exists
despite women having higher educational levels than men and working longer
hours than their male counterparts.
This means that you may be underpaid
simply because of your gender, which is illegal under federal law. However, if
you do not address this issue with your employer during negotiations for a new
job or higher salary at your current position, it will continue to affect your
paychecks indefinitely and possibly even cost you future opportunities for
advancement within the company.
The best way to address this issue
is through open communication with your manager or human resources
representative—and ideally both! If they are unaware of their own bias against
female employees (and some studies suggest they are), then bringing it up may
help them understand where their unconscious biases come from so they can work
on addressing them personally first before making any changes from an overall
policy perspective within the company as well as in terms of how salaries are
determined throughout various levels within each department.
Leverage Loyalty
If you are a loyal employee, then
leverage that to your advantage. If you have been with the company for a long
time and have a great track record, mention it. Or if you are considered a
superstar or key person by your employer, then let them know how valuable their
investment in you has been. This will help them see how much more they could
get out of having you around longer—and may even influence them to increase
your salary offer!
Know How Much You Are Worth
- Know what you are worth.
Your salary is only one part of your
value to a job. The skills and experience that you bring to the table, as well
as your reputation within the community, are all factors in determining how
much you are worth as an employee. While it can be difficult to put a true number
on what you are worth, there are tools that can help give you an idea of where
your skill set falls in terms of market value. Use this calculator for
guidance: [Salary
Calculator](https://www-11.ibmcloudantlabs-apis-com-us-east1/salary_xref)
- Be confident in your competence and knowledge when
negotiating compensation!
Just because you're underpaid now, doesn't mean you have to stay that way.
Don't just assume that your current
salary is the best you can do. You may be underpaid, but that doesn't mean you have
to stay that way for the rest of your career. You can negotiate a new salary
if:
- Your employer has not given you a raise in years
despite your hard work and talent.
- The market rate for the position is higher than what
you're currently being paid.
- You have a strong case for why your salary should be
increased (e.g., proven track record of success).
Conclusion
If you’ve been underpaid, don’t
despair. As we discussed above, there are some very real ways to get paid what
you deserve. You can use your salary as a bargaining chip or negotiate a raise
or promotion; if all else fails, you can find another job with better pay and
benefits elsewhere. The key is knowing when the time is right to make a
move—and having the confidence (and courage) to do it!