3 Ways to Figure Out if You’re Underpaid, and How to Negotiate for a Better Salary

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Everyone wants to feel valued at work, and salary is a big part of that. Here’s how to see if you’re getting your fair value. 

Workers aren’t happy. According to Gallup’s State of the Workplace report, less than a quarter of workers feel engaged by their jobs, and more than half rate their current employee well-being as “struggling.”

If we’re going to deal with all that nonsense, we can at least get paid fairly for it, right? But how do you make sure you’re actually getting your fair share? You need to know how your salary stacks up — and what to do when it doesn’t. Let’s start with figuring out your own worth as a worker.

How to tell what you’re worth

You can’t determine if you’re being paid well if you don’t know what you’re worth in the first place. Figure out what is typical for your role, as well as what you’re personally worth based on your experience and accomplishments.

1. Research your role

You can find a ton of useful salary information with a few internet searches. Try these places to get started:

Salary comparison sites: Sites like Glassdoor, SalaryExpert, and Salary.com are all examples of sites that compare salaries for various positions based on user feedback.Job listing sites: Hit up Indeed, LinkedIn, Monster, and other job listing sites to see what salaries are being advertised for roles similar to your own.Social media: Every industry has its own corner of social media, be it a Facebook group or Reddit sub. Hit the FAQs or make a post to find out what other people are being paid for similar jobs.

2. Chat with coworkers

Another way to gauge what your position is worth is by comparing your salary to those of coworkers in similar roles. And no, despite what some employers may prefer, they legally cannot stop you from discussing wages with your coworkers (on your own time; they can prohibit you from doing it while on the clock or in front of customers).

Keep in mind that there are a lot of reasons you may not make the same salary as your coworkers, and they’re not all unfair or based on malice. Experience in the role, time with the company, educational background, geographical location — any of these factors could be good reasons for salary differences within a company or even department.

3. Interview elsewhere

One simple way to see what you’re worth in the job market is to, well, enter the job market. It’s always a good idea to periodically update your resume, so brush it off and apply for a position that looks similar to your own. You’ll know your current salary isn’t quite right if the offers you receive are drastically different.

Negotiating a better salary

The key to successfully negotiating for a better salary is to be prepared. Here are a few things to consider.

1. Know your stats

It’s a lot easier to win a salary negotiation when you can objectively prove you deserve more money than you’re making. Gather statistics about how many projects you completed or how many sales you’ve made for the company. (It’s generally best to avoid mentioning your personal finances or expenses. Use your accomplishments to show your value to the company.)

2. Set a goal

Decide exactly what you want to accomplish. Are you happy with any kind of pay bump, or are you aiming for a certain rate based on your research? Do you want a promotion in title or position, or just the pay raise? Have a starting number in mind when they ask — and a compromise number for when they counter.

3. Have a back-up plan

If you get what you’re after, great! If not, what’s your recourse? Do you ask about potential paths forward? Do you go home and start looking for new jobs? In either case, don’t make any hasty decisions. For instance, if you threaten to quit as a negotiation tactic, be prepared if they decide to call your bluff.

No matter how it goes, keep your cool and stay respectful. You’re trying to improve your career, not burn bridges!

It may be time to move on

If negotiation isn’t going your way (or you’re just ready for a change), it may be time to move on to the next role. In fact, it may even be for the best.

Statistically, you’ll get a better salary bump by switching employers than you will by staying. The ADP Pay Insights study shows workers who switched jobs saw year-over-year salary increases of 9%, while those who stayed had a median year-over-year increase of just 5.9%.

While getting a new job could lead to a pay bump, it’s not guaranteed. The job hunt itself will likely be stressful, and taking a new position could mean moving or other lifestyle changes. But it could still be worth putting out a few applications here and there to see if there are better roles for you.

If you receive an offer, be sure to negotiate for the salary your research shows you’re worth. Also, don’t forget that salary isn’t everything; better benefits can be worth as much, if not more, than a simple bump in pay. For instance, an extra week of paid time off could be worth more (financially and personally) than an extra $1,000 a year in your bank account.

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