In a recent interview, Kelly Harry shared her experience of realizing she was severely underpaid while working as an account executive in ad sales in New York City. Initially content with her $40,000 salary, it wasn’t until a coworker mentioned earning $102,000 that she recognized the discrepancy. Kelly, an immigrant protected under DACA, admitted she didn’t think to negotiate her salary when receiving the job offer. This scenario is not uncommon, as a Pew Research Center survey found that 60% of U.S. workers failed to negotiate for higher pay during their last hiring process.
In addition to individual negotiations, market conditions can also play a significant role in determining salary discrepancies. “Wage compression” is a phenomenon where newer employees earn more than long-term employees due to the market valuing their skills differently at the time of hiring. It’s important to consider external factors when assessing your worth within a company and industry.
Compensation is multifaceted and goes beyond a simple formula of experience, education, and location. Factors such as the cost of living in your area should be taken into account when determining your salary range. It’s crucial to remember that salary discussions should be based on market value rather than direct comparisons to colleagues. Conducting thorough market research and showcasing your impact within the company during salary negotiations can strengthen your position.
When considering requesting a salary adjustment, preparation is key. Avoid directly comparing your salary to that of a colleague during conversations with your employer. Instead, focus on presenting data points highlighting your contributions and achievements within the company. Threatening to leave or using external job offers as leverage should be approached carefully, as not all employers may respond positively to ultimatums.
If salary negotiations with your current employer prove unsuccessful and you feel undervalued, exploring other opportunities may be necessary. Assess the gap between your current pay and market value to determine if a change is warranted. External job offers can be used to negotiate a better salary with your current employer, but be cautious in using this tactic. Ultimately, the decision to stay or leave a company should be based on your worth and career goals.
Advocating for your worth and negotiating your salary is imperative in ensuring fair compensation for your skills and contributions. By understanding market conditions, preparing for salary discussions, and considering all available options, you can take control of your financial future and secure a salary that aligns with your value as an employee.