Nobody wants to be paid too little, but it’s not always obvious when you are. After all, it’s unlikely that your employer will publicly state that you deserve to be paid more than they are. Fortunately, there are several ways to determine whether or not you’re getting fair pay in this day and age.
In contrast to decades past, there is a wealth of knowledge available online that can assist you in determining your market value. You can also ask some serious questions yourself before turning to your colleagues. Regardless of the path you choose, there are some steps you can take to determine whether you’re underpaid. This blog discusses how to know if you are getting fair pay.
How to Know If You are not Paid Fairly?
You can log on to an online salary calculator site to check the average salary for your position. This will give you an idea of whether you are underpaid or not. You’re not getting the right salary if your salary is lower than the online data average. Below are some steps by which you can know whether you are getting a fair salary or not.
Steps to Know If You Are Getting Paid Fairly
1. If you see job openings for positions that are comparable to yours and pay roughly the same as what you do now, you are being paid fairly. If every job posting you come across pays significantly more than your salary or wages, you are not being paid fairly.
2. You are only paid fairly if you are employed in a position that allows you to choose how much overtime you work and are classified as exempt (salaried, not eligible for overtime). You are not being paid fairly if you are required to put in a lot of overtime hours but have no say in the matter, no control over the workload, and so on.
3. If you have benefits (such as health insurance, dental coverage, paid time off, etc.) that significantly impact your pay and that, when combined with your salary, provide you with a fair total compensation package, you are being paid fairly. If you don’t have access to essential employee benefits, but your pay doesn’t make up for it, you’re not being paid fairly.
4. If you and your boss discuss your compensation when your role significantly changes, you are being paid fairly. If you keep taking on more and more work and responsibility while your pay remains the same, you are not being paid fairly.
5. You’re physically fit. If you and your manager have a shared vision for what your career advancement could look like—with estimated timelines and compensation targets—and you and your manager discuss your role and career progress at least once a year.
You are undervalued if your boss only gives you a small raise (if any) once a year, and there is no other discussion about your career path or pay.
4 Ways to Find If You are Being Underpaid
1. Contact a Recruiter
Even if you’re not ready to quit your job, schedule an informational interview to pick a recruiter’s brain about what’s going on in the job market. Here are some pointers to consider if you decide to go this route:
1. Cast a wide net: Recruiting is a relationship business, and most companies use the same one or two recruitment agencies to find candidates. You’ll get a more accurate picture of your worth if you contact a few different agencies (or other options).
2. Inquire about the last three positions filled by the recruiters: What were the candidate’s qualifications? What did they seek in terms of remuneration, and what did they receive? Were there any mitigating factors that contributed to this?
3. Update your resume: Before your meetings, update your resume and ask the recruiters for suggestions on how to improve it. Hey, while you’re there, you might as well!
Unions exist in some industries to advocate for their members and ensure employers pay them a fair wage. However, most candidates do not have access to this resource. However, you have access to networking organizations within your industry that can serve the same purpose.
Some of these organizations charge a fee, while others are free, but many provide guides to average salary ranges that are goldmines of information. Almost every group will also offer opportunities for members to share information and support one another.
3. Job Boards
One of the best ways to determine if you’re being underpaid is to look at what other companies are paying people with similar experience and skill sets. It can be challenging to gather accurate data on general job boards(most postings state the elusive “depends on experience”). Still, if you use industry-specific sites, you’ll better understand the opportunities available.
However, salary is frequently negotiated, so you may need to interview to find out what a company will pay you. While conducting an interview solely for research purposes is acceptable, your current employer may disagree. Keep your current employer in the dark about your intentions, so you don’t end up in an awkward situation, or worse—be fired!
4. Use a Salary Calculator
If all of this seems like too much work and you’re looking for quick and dirty research, go to a site like salary.com (Software Company), which aggregates data from employers and employees to provide salary ranges for various careers. These sites don’t always consider your education, your responsibilities, the type of organization (i.e., are you working for a startup or an established company? ), or the intangible human element that comes across during interviews or as part of a team. So, while a salary calculator can be a starting point for your research and one of the data points you collect, it should not be your only source of information.
Why is it Important to Get Fair Pay?
Fair Pay is the concept of compensating employees with comparable job functions with comparable pay, regardless of gender, race, ethnicity, or other status. However, this practice is frequently more complicated than simply eliminating biases. Employers must consider other factors, such as the employee’s education and work experience, the position’s responsibilities, and the organization’s long-term financial stability. Why is it essential to be paid fairly? Let us look further.
- Fair Pay prevents discrimination lawsuits
- Adheres to equal pay rules
- Improves productivity and morale
- Reduces turnover in the workplace
- Attracts talented new employees
What Should You Do If You are not Paid Fairly?
Investigate the salary for your current position at your current company based on where you live, your years of experience, and your educational background. Then, use an online search engine to look up average salaries. Compare your pay to the averages while assessing your compensation package’s current benefits and perks. Also, Talk with a trusted coworker. Confiding in a coworker can not only help you talk through how you’re feeling, but these conversations can also provide insight into how others at your company are compensated.
Meanwhile, you Negotiate your pay. Take into consideration meeting with your employer to discuss salary. Research average salaries before this conversation to use as examples to support your claims about your current salary and why you believe it should be higher. Based on your level of experience and special skills, emphasize the amount of effort you put into your job. If the meeting with your employer does not go well, this may be a telling sign that you need to start looking for positions at other businesses where you will be paid more fairly. Before thinking about switching to a new job, investigate local employment opportunities and salaries.
Everyone expects fair pay for the work they do. Companies should pay fairly, without discriminating against people, especially if you wish to retain talents in your company. Meanwhile, companies should do proper research if you suspect you’re not getting fair pay. Fair remuneration is essential, and almost all companies should pay appropriate wages. If they do this, then the company will also have good benefits.
1. What determines a fair salary for a job?
A salary considered “fair” is one whose monetary compensation is commensurate with an individual’s contribution. When determining what constitutes a “fair” salary, other factors, such as equality and fairness between employees, are considered.
2. What should be considered to determine fair pay?
Pay that the employee deems “fair” is known as fair pay. The compensation an employee receives in exchange for their work will influence how much time and effort they put into their daily tasks and how long they stay in their current position.
3. Why is fair pay an issue?
Fair pay is a family issue. Women make up nearly half of the labor force and are a growing number of family breadwinners. More women are also working in positions and fields traditionally occupied by men. When women are not paid fairly, they and their families suffer.