I’m underpaid, help!

After doing some research, I realize that I'm underpaid by at least $10,000/year and in some cases as much as $30,000/year. What do I do now?

Dear Career Curator,

While this news can be quite upsetting, at least you have the information and that's the first big step. Often times people don't want to know how their salary compares to the current labor market and sadly there are employers that benefit from the lack of market compensation awareness of their employees. Start with taking a deep breath. Now is a great time to create a list that outlines what you love most about your current job and opportunities for improvement. This exercise will give you concrete information to decide which step come next. Depending on whether the pros outweigh the cons in your current role, be prepared for the longer journey of searching for your next opportunity. The preparation will support your conversation with your current employer while also giving you the necessary tools for a job search, if needed.

Prepare by updating your resume. Take the time to include recent projects you have completed and achievements you have accomplished. Review roles previously listed on your resume and be sure you are highlighting the most relevant details for the direction your career is heading. Take a look at job postings that interest you to get a better idea of what employers are currently looking for. Consider your current activities, are you active in your industry? If not, it's time to get back into networking and making connections with peers that are doing similar work and have similar interests. I always advise to keep this part of your career active and consistent, but many people get so overwhelmed with their job that they forget about the activities that enhance their career. Here's your reminder to not allow those industry activities outside of your job to dissipate.

Next, it's time to prepare your ask. It's helpful to go into this conversation knowing what your are willing to accept and whether you are willing to walk away if you don't get it. Using the previously outlined achievements in your current role, have a conversation with your line manager about your concerns. Be clear in your ask and bring any research you are able to share about the compensation discrepancies you uncovered. It's important to note that your line manager typically has very little ability to increase your compensation, however, they can advocate on your behalf and any leader that values your contributions to the team will do their very best to support you and raise your concern. At minimum, your line manager knows where your compensation falls within their team and if there's any wiggle room to increase your compensation based on that information. 

Here's the rub that most people miss, remaining with the same employer for 3+ years (this used to be 5+ years, prior to 2018) can have a direct negative impact on your compensation. Not all companies have the ability or strategic focus to properly review and keep their internal compensation on par with the market. I'll go even further to say that there are companies that benefit from ignoring market compensation for as long as they possibly can as a strategy. Unfortunately, not all employees have the savvy to understand how compensation works and take the initiative to make sure that they are being compensated fairly and appropriately in comparison to the market. I find that there are two main groups when it comes to compensation and career choices in general, those that get comfortable in their job and hope for the best and those that are working with a clear purpose in mind as they curate their career. I won't add a label for either, because I believe that people are often doing the best they can with the information they have, but I implore you to be a constant knowledge seeker. Be curious enough to seek information that will support your best interest.

Commit to following up with your line manager until you receive a definitive answer on your compensation increase request. If the decision does not meet your expectations and you are ready to walk away then it's important to begin your job search. Your resume is ready, you have alerted your network that you are looking for your next opportunity, don't waste any time getting started. It can be tough putting yourself out there, but without risk there is no reward. Rejection is a part of the job search process and should be considered as redirection towards the opportunity that is for you. Keep a positive outlook and encourage yourself to stay the course. Once you have an offer (or 4) in hand, be sure that role and compensation meet your expectations and make the best choice for you. There is no wrong decision. Any choice you make today can be changed by the choice you make tomorrow.

It is absolutely possible to have a career that is rewarding in experience and compensation. As much as you may love the job you're doing, never lose sight of the total package unless you would be okay doing the job for free. The reality is that we all work to be able to support ourselves financially. Every dollar that you leave on the table today will cost you in the future.

With Encouragement,

Career Curator

P.S. It should go without saying that salary is only one element of compensation. For some it's the most important, while for others there may be other benefits that rank higher than salary. Make the choice that is best for you, starting with increasing your awareness and knowledge of how compensation works and what the current market is offering.