Not Paid Enough - Next Step

A reader told us her horrifying situation: “The company I work for has been on a wage freeze for 5 years. That’s 5 years we have all gone without raises!! I know I’m not getting paid what I deserve!”

Yes, you are not. If you factor in inflation primarily driven by energy costs and cost of living, you are losing money exponentially right now. So if you are like this reader, and you have determined that you are not paid enough, what do you do?

Remember I said it was easy. Lets take an example where Joe earns $75,000 a year. He is a software developer. He looks at several sources for salary comparisons, using Robert Half’s report primarily as an example. Most software developers in his region of the country are earning $85,000 with the 7-10 years experience Joe has. Joe must take this data in to his boss and say the following if it is true, “I love working here, but my salary is under what the average is. Let me show you how I determined this number.”

If Joe is highly valued, he will get an incremental increase of at least 50% of the difference.

Why? Because the company realizes they are underpaying Joe and they need to make an adjustment. If Joe is not highly valued, he may get 10% or nothing at all.

The key here is how much are you worth? If you are worth $45,000 annually and you are being paid $25,000, you ask one question. Am I a good employee? If the answer is yes, you simply ask for a salary adjustment or you find another company. If you are truly worth $45,000 and your market is in demand, you may get an offer for much more than $45,000. If the market is luke warm, then you may get something of an average. In this example, it would still be a $10,000 increase.

Bottom line, do not sell yourself short. If you figured out that you are worth more than what you are being paid, simply present the facts to you boss. These are just facts. If you are valued as an employee, you will get the increase. If you do not get a raise, blow the dust off your resume (time to leave). If you are not a valued employee, blow the dust off your resume because you may be on the way out.

Write down the difference in a percentage ratio. If you are anywhere from 5% - 20%, you must get your HR department and/or your boss together and educate them. Remember facts only. If you are under 5%, you probably should wait. If after a year your boss does not give you the 5%, negotiate or leave. Many of you will have to seriously consider leaving your company.

The question becomes how much you are worth and quality of life.

Commit to yourself to act on any inequality. More on this topic coming soon!