In 2019, research by The Chartered Institute of Personnel and Development found that only 51% of employees think that they are fairly paid. If you are one of them, now’s the time to stand up for yourself and revaluate your pay check. Apart from those incremental rises, no one is going to fight your corner when if comes to increases in your salary, and you have every right to be paid for the value that you bring to the company.
But how much should you be getting paid for the work you are doing? How can you find out what your true worth is to negotiate it at your next performance review? Here are a few places to start the process:
Most companies employ people based on a cost-benefit analysis, that is, does the employee either make me money or save me time? If they make me money, is it more than their salary, benefits and other costs, and by how much? If they save me time, how much money is this saving, and is it more than their salary, benefits and other costs, and by how much?
Therefore the first thing you can do is to work out what this figure is and what it is compared to your salary and benefits.
However, you also have to factor in the company’s goals. For example, alongside the costs they have now, the company will also want to future proof themselves by developing new innovation and technology which they will bring to market, attracting new clients or investing in new technology to improve their labour costs.
So spend some time researching this - your line manager might have abetter understanding of the future goals of the company, whilst if you are in a large organisation the internal comms department will keep you up to date of future planes. You can also investigate through the company’s website.
Your track record
If what you are doing is aligning with these goals, that’s especially great as you can make a case for why you are so necessary, particularly if you have some skills or knowledge that others don’t have, or it will be difficult to train a replacement for you.
You can also consider what have you done in the past that has helped them. Have you managed to save them money? Did you work on a project that helped them bring in lots of new customers? Have you expertise in a specific innovation that has been brought to market? And how are these aligned to the vision of the company?
Your market value
You can also research what your salary is likely to be in other companies based on your experience, skill level, and geography. To find out this information, look at:
It’s unlikely that you’ll find individual salaries, but often industry publications run salary surveys and you’ll get a better understanding of what professionals with the same qualifications as you earn.
Websites such as Salary.com, PayScale and Glassdoor.com invite users to enter their salary information (anonymously) so you can get a better understanding of professionals in your industry, based on location. LinkedIn can also help you get a better understanding.
Job board sites
Salaries are often listed within a 20% range which can give you a good understanding of the level of pay that a company is prepared to offer.
Recruiters in your field
Specifically look for recruiters in your industry, but a conversation with them can be a great help when wondering what you salary could look like.
If you are comfortable in speaking to your HR, set up a on-to-one meeting to discuss your salary inquiries. Especially if you are not being as well paid as your colleagues for the same work, or you’re really punching above your weight, they can put together a case to help you negotiate a pay rise.
Once you’ve a handle on how much you think you are worth in the workplace, think about the other benefits you have or might want to negotiate. These might include working from home or a negotiating a higher salary after you’ve completed a goal.
Furthermore, meet your line manager with the facts at hand. Present a case as to why you deserve a higher salary - the impact you’ve made in your role, and how it has benefitted the company’s bottom line. With a firm case it will be tough for the company to decline your request as they’ll understand the value you bring to them.
What are you waiting for? It’s time to go out and get that promotion!