In today’s episode, we discuss a common concern that many professionals face: lagging salaries compared to their peers at competing companies. This situation may not come as a surprise, but there are several reasons behind it. This article explores these reasons and discusses effective strategies to deal with the problem.
Longer tenure and the need for career management
One of the main causes of salary disparity is longevity at the current company. Loyalty is admirable, but it’s important to remember to be true to yourself and your career growth. If you’ve been with a company for more than 5 years, it’s common for organizations to take advantage of your loyalty by not offering you a raise like you’d receive as a new hire, or by moving to a side position at another company. . Therefore, proactively managing your career becomes essential. As a career coach, I often recommend considering moving to a new job after 5 years to avoid being underpaid or underpaid.
claim one’s worth
Another reason for salary discrepancies is not effectively communicating your value to employers. It’s important to highlight your contributions and achievements as valuable assets to the company. By consistently delivering on projects, generating savings, and implementing innovative systems, you’ll have the weapons you need to make a compelling case for salary increases. Keep in mind that you are the one who decides your career, and showing off your tangible contributions can have a big impact on your pay.
Research Competitor Salaries
If you think your salary is not on par with your peers in similar positions at competitors, do a thorough investigation. Use platforms like LinkedIn to connect with professionals in your industry and ask them about their salaries secretly. Surprisingly, many people today are willing to share such information. Comparing salaries from rival organizations can provide valuable market insights and help you determine reasonable salary negotiation goals for your company.
Create a compelling business case
It’s important to leverage salary research to create a strong, fact-based business case to present to employers. Collect data about competitor salaries, including information about bonuses and additional benefits. Present a compelling argument that demonstrates how your skills, experience and contributions align with market standards. Being well-prepared and making a compelling case increases your chances of securing a well-deserved raise.
Negotiation and investigation
Salary negotiations require effective communication and negotiation skills. Your employer may not agree with your initial proposal, but be prepared to negotiate. Highlight the pay gap between you and your competitors’ colleagues and emphasize the fairness and market value of your demands. If your employer resists or offers a lower number, ask more questions to understand why and defend yourself. Remember, you have the right to manage your career and seek fair compensation for your skills and expertise.
Consideration of alternatives
If your employer doesn’t meet your salary expectations or offers poor raises, it may be time to look for other opportunities. In today’s booming job market, there are many options available to professionals in various industries. Don’t settle for low pay. Instead, actively seek out positions that value you and reward you accordingly.
Addressing the pay gap with your competitors’ peers requires proactive career management and effective communication. Recognize the impact of long tenure, assert your worth, conduct thorough research, create a compelling business case, and negotiate aggressively to ensure your salary is commensurate with your market value more likely to be possible. Remember that you are responsible for your career. By taking control, you can keep your salary in line with peer and industry standards.
