Signs You’re Underpaid At Work (And What To Do About It)

When it comes to securing a professional job and advancing your career, salary often remains a closely guarded secret. Yet, your compensation is one of the most crucial factors influencing your motivation and job satisfaction. If you find yourself questioning whether you’re earning less than your peers, it’s time to evaluate your situation.

After working at the same company in the same role for several years, it’s essential to compare your salary against the current market average. As your qualifications grow, your salary should ideally reflect that growth. Unfortunately, this is not always the case.

Understanding your worth can be challenging, especially if you’re new to your profession or industry. This article will guide you on how to assess your value and identify signs that you may be underpaid in your current position.

Key Takeaways:

• If your salary is below the online average for your role and experience level, it may indicate you’re underpaid.

• If you suspect you’re underpaid, consider discussing it with a trusted coworker or HR, negotiating a raise with your manager, or exploring new job opportunities.

• To determine your worth, consult with a recruiter, utilize salary calculators, and network with industry professionals.

Signs You May Be Underpaid at Work

Now that you have a clearer understanding of your worth, it’s time to identify potential signs that indicate you may be underpaid.

1. Your salary is lower than the online average. If your research reveals that your compensation lags behind the average for similar roles, it’s a strong indicator you might be underpaid. Salary calculators, which aggregate data from various sources, can provide valuable insights into your position within your industry.

2. Your responsibilities have increased, but your pay hasn’t. If you’ve taken on additional responsibilities without a corresponding pay increase, it suggests you may be undercompensated.

3. Your benefits differ from those of your colleagues. If you observe that coworkers enjoy better perks, such as extra vacation days or improved health benefits, you might be receiving less overall compensation.

4. You’ve transitioned to a higher-paying industry, but your salary remains unchanged. If you’ve moved to a sector known for better pay, yet your salary hasn’t adjusted accordingly, it’s a sign you may be underpaid.

5. You haven’t negotiated a raise in years. If you’ve been with your company for an extended period without discussing a salary increase, it’s likely you’re underpaid. Regularly revisiting salary discussions is vital as market rates fluctuate.

6. You’ve received a promotion, but no salary increase. If a promotion comes without a raise, it could indicate that your employer is undervaluing your contributions.

7. Your colleagues earn more. If coworkers with similar qualifications receive higher salaries, it could be a warning sign. Conduct a comparison of your qualifications to assess the situation.

8. Job postings for your role offer higher salaries. If your company is advertising similar positions with higher pay, it may suggest that you’re underpaid.

9. You haven’t had a performance review recently. If your organization delays performance evaluations, it raises concerns about fair compensation. If it’s been over a year since your last review, initiate a conversation with your manager regarding your performance and salary.

10. A recruiter suggests your salary is low. Conversations with recruiters can provide insights into market standards. If they indicate that your salary should be higher, it’s worth considering.

11. Jobs with fewer responsibilities at your company pay more. If you find that your colleagues in less demanding roles earn higher salaries, it’s a clear sign that you may be underpaid.

12. Similar jobs in your area offer higher pay. While salaries vary by location, comparing your salary to similar roles in your area can help determine if you’re underpaid.

13. Your salary has remained stagnant. If you haven’t seen a raise in one to two years or more, it may indicate you’re being underpaid.

14. Your salary doesn’t reflect your specialized skills. If you’re in a specialized field but aren’t compensated accordingly, you may be underpaid relative to your skillset.

15. Your salary doesn’t reflect the demand for your career. If you work in a high-demand field, such as technology or healthcare, ensure your salary aligns with industry standards.

16. Your salary hasn’t adjusted for cost of living increases. If you’ve moved to a more expensive area, ensure your salary reflects your new living costs.

17. Your salary hasn’t kept pace with inflation. As the cost of living rises, your salary should also increase. If it hasn’t, it may be time to negotiate a raise.

18. New hires are offered higher salaries. If your organization is paying new employees more than you, it’s a sign that you may be underpaid.

19. Your company has high turnover rates. Frequent departures may indicate employees are dissatisfied with their compensation, suggesting you might be underpaid as well.

20. Your company is thriving, but your salary hasn’t changed. If your employer reports strong financial performance without a corresponding increase in your salary, it may be time to evaluate your compensation.

21. You receive higher offers from other companies. If you’re considering new job offers that pay significantly more for similar roles, it’s a clear indication that you might be underpaid.

What To Do If You Suspect You’re Underpaid

Once you’ve assessed your situation and determined that you might be underpaid, it’s time to create an action plan. Conduct thorough research comparing your salary to industry averages. After confirming you are indeed underpaid, consider the following steps:

1. Consult with a coworker or HR representative. If you have a trusted coworker, discussing your concerns can provide valuable insights into compensation practices within your organization.

2. Negotiate your salary. If you’re confident in your findings, prepare to negotiate a higher salary with your manager. Gather your research to support your case during the conversation, giving you the confidence to advocate for yourself.

3. Explore new job opportunities. If your employer responds negatively or dismissively during your discussion, it may be time to seek positions elsewhere that offer fair compensation. A negative reaction to a salary discussion is a red flag regarding your employer’s treatment of employees.

How Can I Find My Worth?

There are various ways to determine what you should be earning in your field. Instead of directly asking colleagues about their salaries, consider these discreet methods to gather salary information:

• Consult a recruiter. Recruiters are well-versed in salary trends and can provide insights into what you should expect based on your skills and experience. Engaging with a recruiter doesn’t mean you need to leave your job immediately; it can simply be a way to gather market insights.

• Network with peers. Building a network within your industry can provide valuable information about salary expectations. Joining industry-related networking groups can facilitate discussions about compensation trends.

• Browse job boards. Job listings often include salary ranges, making them a useful resource for understanding your earning potential. Industry-specific job boards can give you a clearer picture of what similar roles offer.

• Use salary calculators. Online salary calculators can estimate salary ranges based on aggregated data. However, keep in mind that these are only estimates and may not account for specific factors such as your unique qualifications or the organization type. Use them as a starting point for your research.

Author

Caitlin Mazur

Caitlin Mazur is a freelance writer at Zippia. Caitlin is passionate about helping Zippia’s readers land the jobs of their dreams by offering content that discusses job-seeking advice based on experience and extensive research. Caitlin holds a degree in English from Saint Joseph’s University in Philadelphia, PA.