Three Ways to Tell if You’re Underpaid Compared to Your Peers
Companies need to modify their wages and compensation packages to be fair and competitive in the marketplace. Cost of living, increased job competition, and the pool of highly-skilled workers all factor into the equation. This is especially true for a business that’s trying to hire new people.
If you’re already settled into your position, you may feel that you’re at a disadvantage when it comes to your salary. Perhaps your employer isn’t putting enough focus on your wages and you suspect that you’re being underpaid.
The Signs of Being Underpaid
If you think you’re not being paid enough, there’s a good chance that you’re correct. It’s awful to feel undervalued for your work. Of course, it’s not always easy to determine whether you’re being fairly compensated. Ask these questions:
- Has the company’s revenue increased significantly while your pay remains the same? Companies sometimes will expect productivity to stay at the same level even with stagnant wages.
- Are you earning less than your coworkers? Cautiously asking other peers about their wages may reveal if you’re being left behind in the compensation department.
- Are you taking on more responsibility without additional compensation? More responsibility typically comes with added pay.
If you answered yes to any of the above, it may be time to take a long, hard look at your salary.
Determining Your Market Value
You have to do some research to determine if your pay is competitive. The information you find will be important if you discover that you’re underpaid and must approach your boss.You can find salary information from several different sources, including:
- Recruiters. These experts are usually willing to help you determine your market value. You benefit by gaining information as well as access to the recruiter’s hiring contacts. A good recruiter can provide interview insight that will help you stand out among the competition. He or she will also be better at negotiating compensation.
- Job listings. These reveal publicly advertised salaries in your field. Many sites include this information in their postings.
- The internet. Many reputable sources have built-in wage comparison tools that will show a range of what you should be making for your skillset and position.
Evaluating All Compensation
Your salary isn’t the only thing that constitutes compensation. You also need to consider the other benefits that you receive. For example, healthcare coverage is valued by 40% of people over a pay raise.
If your salary is a bit short of the baseline but you have a good retirement plan, vacation schedule, a performance bonus, equity, etc., you actually may be coming out ahead. Think about how important each benefit is to your lifestyle and whether they outweigh some extra cash.
If you still aren’t satisfied with your salary after completing your research and evaluation, it may be time to call for a meeting with your boss—or give 2Bridge Partners a call. We specialize in the placement of technology candidates on a permanent and temporary basis and can help you further explore your employment options.