How do I know if I’m underpaid?
Compensation can be a challenging space to navigate. Some companies are transparent about how they approach pay, while others keep it under wraps. To answer the question, let’s start by getting in the mind of the company - how might it think about about pay?
THE JOB DESCRIPTION + MARKET DATA + BUDGET = SALARY RANGE
responsibilities & qualifications salary survey how much $$ is set aside minimum, midpoint & max
So, now that you have an idea of how your company might assess pay, what’s next?
Ask yourself why. What prompted your curiosity around pay? It’s really important that you’re clear on the why, so you’re clear on what your desired outcome is. Did you find out a coworker makes more than you and you’re in the same job? Maybe your role has changed significantly over the last year to include more responsibility. Or, maybe you’re curious for your own understanding. Know your why and be prepared to discuss it.
Research, cautiously. If you google “how much does [insert job here] make?”, there won’t be a shortage of sites offering salary information. And while there is some value to it, it’s important to know that many of these sources rely on folks self-reporting. There’s no check and balance, no verification. A big piece of missing information here is what the compensation philosophy is for those companies. Some have a well thought out philosophy, others don’t. Some pay more than the market average, while others pay the average. It’s often an HR Teams pet peeve when employees bring salary data from these types of sources, so be warned (and prepared!).
Talk to Recruiters. Even if you aren’t looking for a new job, recruiters can be great resources for intel. They often have access to reputable salary survey data and have their pulse on the market, specific to your role, industry, and geography. Next time a recruiter reaches out, take the call! It’s an opportunity to build your network, get another data point on salary, and who knows - maybe land a new job you didn’t even know you were looking for.
Discuss with your manager. You know why you’re asking about your pay and you’ve tried to collect as many data points as well. Now it’s time to talk to your manager. Take the time you need to prepare, gather your thoughts, and your asks. Your manager may not have all the answers, but they are a great place to start and can bring in the HR Team for advice and counsel.
Pro Tip: Here are a few questions you can ask.
Do we have salary ranges at our company? If so, where do I fall in mine?
Do we have an annual salary review process?
How are salary adjustments and promotions determined? Are they based on performance?
You’re ready to take control of your compensation destiny. Good luck!
Gabby
